Business Succession for Architectural Practice
Our client is an architecturcal practice which had suffered reduced profitability following the 2007/08 recession, which had resulted in a significant disparity between the capital provided by each of the partners. Cash flow and profitability would make it difficult for the more senior partners to be paid out in full and potentially unattractive for the new partners of the future.
How we helped our client
Our Private Client Tax team and EQ’s Professions team worked in tandem, deploying their years of experience in dealing with unusual scenarios. Using a mix of property, restructured bank debt, pensions and an elongated buyout period, EQ were able to construct a workable model for the practice in order to allow retiring partners to be paid out but also to provide a platform for potential future owners.
Our support involved detailed client meetings, an element of tax planning to ensure only known and acceptable liabilities and the creation of a model which would be supported by the business bankers. Following completion, the first owner has retired and is achieving a phased payout that was well beyond his expectations but entirely affordable for the practice
For more details or to discuss how we can help you, please contact the Private Client Taxperts.
For further assistance with your professional queries, please contact our Head of EQ Professions, Mark Gibson on 01592 6300055.