Richardson Jones helps director buy out a shareholder

Richardson Jones, accountants and business advisers in Marlow, recently helped a long-standing client buy out one of his business partners.

The partner was leaving and needed to realise the value of his holdings in the company. However, it was not possible to do this through a straightforward purchase of shares as the business did not have the required reserves. We created a holding company structure which enabled the company to fund the purchase through continuing earnings. This proved to be an efficient solution for both parties -  tax-efficient for the director leaving while the company did not have to take on unnecessary debt.