Firstly, we were appointed to facilitate and create an exit strategy for the two owners (Mr A and Mrs H) who were considering selling the business. We have held quarterly strategic meetings to develop and execute the growth of the business to a level that would create a sale value that would allow them to financially retire.
Secondly, we engaged a specialist agent to sell the business and are currently in the process of planning the taxation impact prior to sale. We expect offers around the £1,000,000 level following a valuation on our appointment of less then £250,000. The advice we have provided has helped to maximise this valuation.
Finally, the company had traded for 15 years prior to our involvement and had not claimed R&D Tax credit tax relief due to their advisors stating it was not claimable – we successfully agreed a claim with HMRC and claimed the relief. The end result was obtaining a corporation tax credit in excess of £50k for the 2 year prior period and also likely savings on going of £10k per annum.