Selectaglaze

Partner Jeremy Glover

Key Facts:

£6,000,000 Sale transaction

  • Shareholders wished to exit business over time but without immediate buyer or family members to pass business on to
  • Set up Employee Ownership Trust (EOT)
  • Undertook necessary legal and tax due diligence
  • Allowed shareholders to exit, be paid from the profits of the company and secure tax advantage

Summary

Jurit was appointed by Selectaglaze, a UK specialist provider of secondary glazing systems, to provide the legal support necessary to allow shareholders to exit the business over time.

Challenge

Experienced tax and incentives lawyer, Jeremy Glover, undertook the legal drafting and issues relating to this complex transaction, working with several stakeholders and other professionals, to ensure the best possible outcome.

How we helped

  • An EOT was set up in accordance with the relevant legislation
  • The company structure was reviewed, and we advised the client how to reorganise the business to ensure it was structured correctly to enable the transaction to go ahead
  • We prepared the share purchase agreement which managed the interests of the selling shareholders, company and trustee.
  • Reasonable security documentation was prepared to secure the assets of the company whilst the purchase price remained unpaid – this included a bespoke debenture, guarantee and security trust deed.
  • Throughout the process, Jurit liaised with all relevant stakeholders – internal and external to ensure a smooth process
  • We balanced a variety of competing interests to achieve the right outcome for all involved, ensuring that we were aware of the variety of needs
  • This enabled us to negotiate and set up a legal solution that would work for everyone.

Result

  • Jurit’s in-depth experience allowed us to combine company, trust, tax and employment law, to ensure the best possible outcome for all involved
  • The company was able to plan for the long term, meanwhile the shareholders were able to plan for the retirement they deserved
  • The selling shareholders received significant cash payments attracting significant tax benefits – all reported and cleared with HMRC
  • The setting up of the EOT allowed the company to continue in its next stage of its journey
  • Having balanced each competing interest, we were able to achieve right outcome for all involved.

Testimonial