Corporate Finance Deal Done!

We recently helped facilitate a £7.6 million company sale for a client in the technology sector.

Our client is a Scottish company which is at the forefront of a niche sector. The business was owned by a combination of institutional investors and key employees (via an EMI scheme which EQ had previously implemented), and the purchaser sought to acquire the company’s entire share capital. EQ were the seller’s accountancy and taxation providers.

What type of work was involved?

EQ were involved in the initial structuring of the transaction ensuring that all ownership and taxation matters were properly documented to ensure as smooth a deal as possible was delivered. The individual share sellers held a combination of different types of shares and therefore requested that EQ undertook individual capital gains tax planning for each of the individual sellers. We were integrally involved in the negotiations with the purchaser to ensure a quick resolution of all matters.

Why was the work undertaken?

With the existing investors, it was felt that the business had gone as far as it could and therefore when an approach was made by another investor, the investors believed that this could provide the global footprint required in order for the company to fulfil its potential. EQ’s close relationship with the directors ensured that we could advise the owners in securing a quick, optimum value sale.

What was the outcome?

The deal became complex in structure with incentives and deferred payments so our specialist tax team worked to ensure that the sellers were able to secure an excellent tax outcome for their sale, specifically looking for the order of shares being sold and the values attributed to each type.

If you are looking for more information, advice or support with a disposal or any form of Corporate Finance (CF) work, please get in touch with our CF team on corporatefinance@eqaccountants.co.uk or call one of our offices today.