get your business in shape: explansion or sale
TRANSCRIPT
How to GET YOUR Business IN SHAPE expansion or Sale?
CATHERINE GANNON
CHOICES
EXPAND – how?SALE – how to max value
VALUATION
• Historical data• Price earnings multiples• Recurring fee income• Why do they want you?
EXPANSION
• Loan vs. Equity
EXPANSION
• SEIS and EIS relief• Veto rights• Tag-along rights• IP
SALE – Preparation
• Suppliers and customers• Employees and directors• Run your own due
diligence • Do you want a checklist?
HEADS OF AGREEMENT
• Not legally binding• Exclusivity period• Important discussion areas:
- - restrictive covenants- timing of consideration
TERMS OF AGREEMENT
• When will you be paid• Cash or shares or both• On-going responsibilities• Claw backs
WARRANTIES
• Principle of Caveat Emptor
• Contractual statements
INDEMNITIES
• Cap• Disclosure Letter
How much will you be left with?
WHAT IS ER
• Applies to first £10m of gains
• CGT charged at 10%
ER – HOW COOL IS THAT
• Business sold for £886,000• Tax under ER @ 10% £86,410
Walk away with £789,590
ER BASIC REQUIREMENTS
• 1 year• 5%• Employee or officer – no
minimum hours
Any questions?
How can we help you?
Visit www.gannons.co.uk for further informationhttp://twitter.com/#!/gannons_law
This information is designed to provide a summary of the issues addressed. Therefore, it is not intended as a detailed commentary on the relevant law and any comments made should not be acted upon without first taking specific legal advice.