Specialist roofing installation company
Our client had recently decided to gift shares to one of their key members of staff to ensure they were aligned in their interests to grow the business.
Client: Specialist roofing installation company
Location: Southend
Service: Shareholder Protection
Description
The business was nearing its seventh year of trading and had historically been owned by one individual. Our client was in the process of expanding and was keen to keep one key individual heavily invested as they had been with her since the start. Previously there had been little need to review the shareholder agreement but now was the perfect time.
Key Challenges
The business had never been valued and whilst we were able to do this, the figures used were naturally backward looking. This was an issue as it did not take into account several large contracts that had recently been secured. We worked with the client’s accountant to come to a sensible valuation which enabled the client to decide on a stake to gift to their number 2.
Outcome
Once a valuation had been carried out, we were able to advise on shareholder protection structured in a way optimised for only two shareholders. This enabled the client to ensure that should their new business partner pass away, there would be funds to enable a share buyback. We liaised with their commercial solicitor to ensure that they had the legal documents to enforce this trade. This gave both parties the confidence that should the worst happen, there was a succession plan in place.