Expertise to Entrepreneurs
Commerical Advice for High Net Worth Entrepreneurs
If you are considering making risk based investments in unquoted companies with a view to securing a healthy return where do you get advice on the optimal structure and associated tax implications of such an investment?
At AAB our team of Entry 2 Exit Experts ('E2') concentrate on ensuring our Entrepreneurs achieve higher returns by delivering structuring and tax advice with a commercial focus.
We Excel in This Space
The worldwide banking collapse caused the realignment of funding criteria at high street banks, making access to funding for many unquoted companies more difficult. At the same time, high net worth (‘HNW’) individuals have seen a reduced return on monies from traditional investments. As a result the UK government has strengthened tax incentives for Entrepreneurs with a view to encouraging HNW individuals to invest in unquoted companies. The government’s ultimate belief is that in doing so these companies will make GB plc financially stronger and banks will be more inclined to lend on the back of companies having a better financial position.
Our specialists in E2 utilise their expertise and work daily to differentiate themselves in the market by delivering innovative investment structures which provide our entrepreneurial client base a greater return on their investment. This is achieved in a number of ways:
- Advising on the optimal vehicle for making the investment, be that personal investment or investing through a Corporate, an Limited Liability Patnership, a Limited Partnership etc; see our co-investment limited partnership case study
- Ensuring the investment is structured correctly with a balanced mix of debt and equity;
- Advising HNW individuals with crystallised gains on the potential to defer Capital Gains Tax by making equity investments in unquoted companies; see our start-up case study
- Considering the background to the investment and the investment target with a view to accessing government backed tax incentives for investors on entry and on exit through reliefs such as the Enterprise Investment Scheme (EIS) or Seed EIS (SEIS); see our tax advantaged funding case study
- Working with investor and the investee’s management to establish an agreed Corporate Strategy with a view to delivering growth in the company, a strong management team and ultimately an exit for our investing client; see our strategic growth case study
- Advising the management of investee on methods to incentivise the work force through employee share incentives or remuneration strategies in order to ensure workforce continuity, a key driver in delivering the company’s strategy; see our shares for management case study
- Advising on optimal exit structures with a view to delivering an exit which realises our client a combination of optimal exit proceeds, minimal taxes and an exit with minimal disruption.
Throughout the life of the investment and beyond, our involvement ensures our entrepreneurial clients to gain the right commercial and tax advice to maximise their return.