Brabners Chaffe Street Solicitors - Corporate Services

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Protecting your legacy - options for owner manager retirement in 2010
1/02/2010

David Houghton, Director of Corporate Finance at Brabners Chaffe Street`s Liverpool office.

Against a backdrop of an anticipated increase in Capital Gains Tax, we are expecting to see a surge in business owners in the North West wishing to retire in 2010.

However, many are concerned about completely removing their expertise without safeguarding their assets. And whilst traditional options, such as an MBO or sale to a trade or private equity buyer are becoming potential options once again, these transactions remain difficult in the current market.

As a result, alternative solutions for retirement such as cash out transactions or staging a partial exit are increasingly being considered by owner managers.

This type of structured exit allows owners to bank wealth now whilst maintaining some day to day involvement to help reassure funders but is not without complications.

Clearly defined timelines and responsibilities for both parties, outlined in contracts and agreements, are vital and professional advisers need to be involved at the earliest stage to encourage negotiations to progress smoothly and ensure tax and legal implications are understood.

The challenges presented by the downturn prompted a burst of creativity from the region`s businesses - by taking an equally flexible approach to retirement, owner managers can develop an individual exit strategy that protects the legacy their hard work has created.


For further information contact David Houghton at Brabners Chaffe Street on 0151 600 3000

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