Peter Rayney provides some tips for owner-managers using a ‘multiple completion’ purchase of own shares mechanism to facilitate their exit route.
We have seen a fair number of owner-managers seeking to exit their businesses as a result of the challenges created by Covid-19. Under normal circumstances they may have stayed on a little longer, but since they were approaching retirement anyway, the uncertainties and possibly difficult trading conditions have accelerated these plans. This is especially so when the owner-manager is confident in their adult children or senior management to take the business forward.
However, in the current economic environment, owner-managers need to be realistic when negotiating their ‘exit’ sale price values.
Purchase of own shares
Company share buy-backs are frequently used to provide