Selling Your Business on Retirement: There is an Alternative.
You’ve spent a lifetime building up your business, the thought on retirement of selling out to your business rivals may be unpalatable and selling to you own management team may not be feasible; there is an alternative. Allowing your staff to take ownership through a phased transition allows the legacy that your have built up to be continued, whilst allowing you to take a back seat from your business through to your retirement.
Popular in the US, where 1 in 5 employees working in the private sector now own a stake in their employer businesses, this model is becoming increasingly popular in the UK. This model is attractive to the UK Government, with £50m annually put-a-side in tax breaks for companies, their owners and their employees. It has been found that revenue, productivity and ultimately profitability improves within these businesses.
Whitings can advise whether this model is suitable for you, the tax implications for both you and your staff, and the financing and corporate requirements, to ensure the transition of ownership is handled effectively and efficiently.