Companies are always reviewing their strategic plans, what they are offering and whether it aligns to the market. They also consider influences out of their control and the affect they may have on their aims and aspirations. Then there are times when a culmination of non-favourable events prompts an immediate review of the business and what is required to be addressed to ensure the health of the on-going business.
A company of long standing, manufacturing furniture, with a strong balance sheet, was presented with events that enhanced such a review.
The Leeds Corporate Recovery team of Armstrong Watson were instructed to advise the Directors of a large firm of architects who had been in business for over 20 years. The Company had over 50 employees and three offices.
Due to the downturn in the construction industry and little work being won, the company was faced with large overheads and was finding it increasingly difficult to meet its obligations when they fell due. Obviously, the Directors had significant emotional attachment to the business and were unable to see the way forward.
Our client is a sole trader with gross turnover just over the VAT registration limit. The business owner employs several staff and processes the payroll personally. Both these issues are typical of small businesses and the associated paperwork and management of payments of VAT and PAYE result in less time being able to be spent on focusing on the main activities of the business.
The introduction of RTI (Real Time Information) is also relevant and needs dealt with in the coming months.
Our legal sector team has a great deal of experience of valuing practices for a variety of purposes including retirements; disposals; mergers; incorporations; restructuring; and increasingly with disputes. We also have experience of being appointed as a single joint expert witness to value practices where the owners are in dispute. However despite all of that experience, each valuation is bespoke and presents different challenges, especially with disputes.
The Budget of 21 March 2012 didn’t hold too many changes for a two partner law firm in Yorkshire we have been working with for a number of years. Yes, the top rate of tax will be reduced from 50 pence in the pound to 45 pence from April 2013, but income in excess of £100,000 per annum will still see personal allowances removed, creating an effective tax charge of 60% on a proportion of income.
Owner manager aged 60 had built a successful company specialising in the import and wholesale supply to the forestry and horticultural sector. The client wanted to exit the business and in turn realise sufficient capital to fund his retirement. The opportunity was referred to us by a firm of local accountants who looked after the client’s compliance affairs but did not have a specialist corporate finance department to advise on business sales.
After several years of having our tax affairs managed expensively and ineffectively by a well known major international auditing company we switched 3 years ago to Armstrong Watson. Facing a complex and unique set of legacy tax issues, Armstrong Watson researched every issue in great detail, consulted the appropriate specialists where necessary and proposed what turned out to be a very effective solution.
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