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Waiting for a lot

04 December 2012 / Chris Chapple
Issue: 4382 / Categories: Comment & Analysis , Business , Income Tax
A management team is anticipating large rewards in a company buyout. CHRIS CHAPPLE looks at potential problems and their solutions

KEY POINTS

  • Ensuring that EMI share options are exempt from income tax and NICs.
  • Maintaining entitlement to entrepreneurs’ relief for various types of consideration.
  • Different shareholders may have conflicting preferences as to the value of Marren v Ingles rights.
  • Check that share reorganisation conditions are met.
  • Applying the memorandum of understanding rules.

While the number of “mega-deals” has declined with the economic downturn there remains a relatively strong market in private equity transactions for smaller businesses in the UK and Europe.

Working with many owner-managers who have successfully built up their businesses in recent years we see significant interest from private equity houses keen to invest funds in companies with potential for growth.

As a result many management teams must tackle the complexities of buy-out situations in relation...

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