When it comes time for a business owner to hand over the reins, it is important that there is a plan in place. The Corporate team at MKB Law has worked with the owners of large and small businesses across many sectors to develop those plans and are trusted advisors to many family-owned businesses undergoing this transition.

There are four routes by which the change can take place: transfer within the family, management buy-out, management buy-in (or a combination of both) and a full business sale.

Proper planning requires a long-term approach and, indeed, starts as soon as the idea for the business is born. Choosing the correct entity structure, financing arrangements and incentive packages for key employees are all essential parts of succession planning.

Sometimes unforeseen circumstances make it necessary for a business to be either sold or transferred to the ownership of someone else. This may involve the introduction of minority shareholders which will necessitate a new Shareholders’ Agreement, the creation of new classes of shares, reaching a new agreement with the business’s funders or making appropriate pension arrangements.

 The retention of key employees is also essential to any succession plan (and maintaining the value of the business), this is often done through share schemes. MKB Law’s Corporate team in conjunction with our Employment team can further advise on this area.

Areas of Focus:

• Tax planning;
• Cross Option arrangements
• Employee incentivisation and share schemes
• Shareholders’ Agreements
• Management Buy Outs or Buy Ins
• Business Sales