Case study

Succession planning options

Background: The owners of an established veterinary practice required advice regarding succession planning. The shareholders had started to think about their exit strategy and although they had not ruled out a sale to a corporate at a future date, they were keen for the practice to remain independent in the medium term as they had some key employees who they wanted to make shareholders. 

How we helped: We provided practical advice which included:

• Valuation of the practice
• Consideration of affordability for the new shareholders (key employees)
• Discussions around funding
• Capital gains tax advice for the existing shareholders
• Advice regarding an anti-embarrassment clause (this clause ‘makes fair’ any consideration should there be a sale to a corporate within a certain time frame post sale to the new shareholders)
• Liaising with the solicitors advising on the legal agreements including an updated shareholders agreement
• Tax efficient remuneration planning to include the new shareholders

The outcome:  The existing shareholders were able to bring new owners into the business, realising some cash, but having left their future options open as regards a corporate sale with some protection over the goodwill value they have sold to the new shareholders.

Case study

Projections for CT scanner

Background: A long standing client was undecided about whether or not to make the leap and purchase a CT scanner for the practice.

How we helped:  We produced some projections, which took into account the initial outlay, future costs and expected income of putting this into place. We also helped guide on how best to fund the new project. This allowed the practice make an informed decision on whether or not to purchase a CT scanner and the potential new income stream this could generate, including when the CT scanner might start paying for itself.

The outcome: Our client now has a CT scanner successfully in place which is proving to be great for the practice’s team development and for client care, as well as improving the practice’s profits.