Due Diligence
When the shares in a company are acquired, the new owner acquires the company in its entirety including its history. As such, there is a greater commercial risk compared to simply acquiring an asset as the value of the company…
Enterprise Investment Scheme and Seed Enterprise Investment Scheme (SEIS)
EIS and SEIS provide generous tax reliefs for investors including income tax relief for the initial investment (30 percent for EIS investments and 50 percent for SEIS investments) and capital gains tax free disposals of the investment. These tax reliefs…
Enterprise Management Incentive Scheme (EMI)
The Enterprise Management Incentive scheme is a share option scheme which is approved by HM Revenue and Customs and enables share options to be granted to employees at the company’s discretion. Each employee who participates in the EMI scheme must…
Management Buy Out (MBO)
An MBO arrangement is a common vehicle used to pass a company over to its management team or, quite often, other family members working within the business. In general terms, an MBO arrangement will involve the incorporation of a new…
Share Valuations
Valuing shares in a private limited company is a very subjective exercise and there are a number of different methods that may be applied. In many cases, it is most appropriate to adopt a valuation based on the earning ability…