Many business owners are re-evaluating their future plans as a result of the pandemic. Some are finding that their thoughts on retirement planning are somewhat different now than they were back in 2019. Some owners have enjoyed more free time as their businesses have been forced to shut during the lockdowns and others have enjoyed more time at home as travel and office working has been discouraged.
In some cases exit plans have accelerated and business owners are looking at what options there are to achieve a sooner than expected exit. We consider some possible solutions in this article.
Faizan joined Bermans Manchester office in January 2021 and works within the Corporate department.
Faizan assists and works closely with the Corporate team on various corporate instructions involving due diligence, disclosure and the review and drafting of supporting transactional documents.
Faizan graduated from the Legal Practice Course in Manchester and has previous experience of working on a variety of corporate transactions including share/asset acquisitions and disposals, company reorganisations, restructures, demergers, incorporations and also private equity.
Outside of work Faizan enjoys dining out, keeping fit at the gym, partaking in sports and is an avid hiker. He also has a keen interest in sports, science, film and culture.
T: 07730 045930
As we await the Budget, still scheduled for 3 March 2021, speculation continues in the press as to whether it will bring a rise in tax and in particular Capital Gains Tax (CGT).
CGT is currently paid at a rate of 20% by higher rate taxpayers on most gains but can be reduced by various reliefs such as Entrepreneurs Relief (which allows business owners to take the first £1 million of gains at a CGT rate of 10%). A recent Treasury report recommended aligning the CGT rates with the Income Tax rates including top rates of 40-45%, a shift that would take us back to the position in early 2000s when the rates were much more closely aligned.
It was sadly inevitable that the Covid pandemic would push the UK economy into a recession. Unfortunately, the money worries that result from a recession can and often do affect relationships, whether they be personal or business relations.
Even the strongest of relationships have been known to breakdown when finances are tight and the current situation may well have caused the most severe financial pressures that some business owners have ever experienced.
Catherine Lo (pictured below), joined Bermans in August 2016 as a Solicitor in the Corporate team in the firm’s Liverpool office. We spoke to her to learn more about her and her work.
The last six months have presented significant challenges to business owners who have grappled with continuing their businesses in the face of restrictive lockdown rules imposed to combat the spread of Covid 19. Many business owners are now operating with a workforce of home workers and their typical working day differs significantly from their life pre-March 2020.
As face to face meetings, corporate events and travel have been stripped from the schedules, business owners may finally find some free time during their day to review the nuts and bolts of their business. That long-awaited review of the shareholding structure, the employee share scheme that has been in the offing for years, the review of key commercial contracts, for some there is now enough time in the working week to get around to these projects.
Future Fund – access to growth capital for high growth companies
The Coronavirus pandemic has seen a reduction in the usual funding streams for some businesses and has forced the Government to think creatively about how they can support promising, infant companies. The result is the new Future Fund.
What is the Future Fund?
On the 20th May 2020 the Government launched another Coronavirus short term rescue package to support business. The Future Fund is aimed at helping pre-revenue or pre-profit companies that were struggling to qualify for other Government rescue packages.
Simon joined our Manchester office as a solicitor in the Corporate department in March 2020.
He qualified as a solicitor in 2019 after successfully completing his training contract at a national law firm with an office in Manchester.
Simon has experience of working upon a variety of corporate instructions including share acquisitions and disposals, company reorganisations and incorporations.
Outside of work Simon has a keen interest in film and politics whilst he also enjoys cycling.
T: 0161 393 7124
Barney is a Partner in Bermans Corporate team and joined in 2020.
Prior to becoming a solicitor he worked for an international domestic bank. He has a degree in Business Studies and qualified as a solicitor in 1996.
He has over 20 years of corporate law experience and acts for a variety of international and domestic business in several sectors including retail, software, online, professional services firms, finance and investment funds.
His work includes acquiring and disposing of businesses from £500k to £120M, venture capital and private equity work, shareholder and partnership disputes, development of businesses prior to disposal in addition to the general commercial work that working with long established clients brings.
His recent work/transactions includes:-
- Partial disposal of a crane company based in Merseyside with an option for the sale of the remaining shareholding
- MBO of an English stove manufacturer based in Exeter
- Shareholders dispute of an £80M turnover employment company
- Acquisition of a taxi company in the NorthWest
- Private equity investment into an online magazine company
- Disposal of a highways infrastructure company to a listed buyer
In his spare time he has an interest in Art and he is trustee of Castlefield Art Gallery which has for over 20 years assisted in the development of northern artists.
T: 0161 827 4600
Bermans has made two appointments to its Corporate team. The team, led by Jon Davage, welcomed Barney Leaf as a partner and Simon Nolan as a Solicitor from Laytons LLP.
Barney has over 20 years of corporate law experience and acts for international and domestic businesses in many sectors ranging from retail, online, law firms, insurance, finance and investment funds.
Joining Barney from Laytons will be his assistant solicitor, Simon Nolan. Simon will undertake the variety of corporate instructions that are generated by the varied portfolio of clients that Bermans acts for.