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Succession buyout of multi-disciplinary interior design practice

We advised an interior design, brand, space planning and property development consultancy, on their succession buyout.

What we did

The owner and managing director of the company approached PEM Corporate Finance seeking professional advice on how they could realise some value from their time and capital investment in the company whilst rewarding key members of staff. We advised on a succession buyout which saw ownership transferred to members of the senior leadership team who had been critical to the success of the business over the last several years. This ensured the future of the business was secured by a new and talented management team.

 

Company background

For more than 40 years, this multi-disciplinary interior design practice has advised national and international clients on their property-related projects, particularly in the hospitality sector.

 

What was special?

This project involved complex structuring to facilitate the tax efficient extraction of a surplus property. We worked closely with our PEM colleagues in business tax, providing joined up transactional advice, which included obtaining clearance for the deal from HMRC.

 

Deal structure

Our client retained a minority stake in the business as part of the buyout and their position in the executive team. The buyout was funded by way of Vendor Loan Note.

 

Legal advice was provided by Lucy Folley and Baljeet Kaur from Tees Law.