Succession planning is a major consideration for all business owners. The method and timescales for an owner’s exit can vary considerably depending on the type of business and the prevailing financial climate. We recently advised a successful franchise business on a complex graduated succession arrangement involving the transfer of ownership of a company over an extended period of years. The terms of the arrangement not only had to take account of the purchaser’s funding constraints but also the potential changes in the business itself and a key contract with a global franchise operation.
Sufficient flexibility needed to be built into the contractual arrangements to cover a series of possible scenarios and their potential knock on effect on the transaction. Working closely with the client’s accountants ensured that we were also able to take account of potential tax implications raised by the structured nature of the transaction. We were able to help co ordinate negotiations between the relevant UK based parties as well as liaise with US lawyers as required.