One way was for the remaining shareholders to buy the shares off the outgoing shareholder, but this would mean the remaining shareholders incurring higher rate tax bills on drawing funds from the company yo buy the shares.

Red Dot recommended the client arranges for the company to buy the shares instead. This is called a company purchase of own shares. The process is quite complex as the circumstances have to meet detailed criteria with HMRC, and the transaction requires HMRC approval.

Red Dot completed the transaction efficiently for our client.

Again, another example of how we can deliver services normally only associated with the larger accountancy firms by using our network of trusted professionals as we require them.

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Our client asked Red Dot to undertake due diligence work as part of the acquisition. Due diligence is the process of checking different aspects of the business being acquired to ensure as far as possible that you are getting what you think you are getting.

We completed some preparatory due diligence work as well as providing advice to our client regarding the different ways to structure the acquisition whilst our client continued discussions with the target company.

Unfortunately, our client decided that a commercial issue had been identified that meant that the acquisition could not continue.

We understand this is a very frustrating time for our client, so the thought of professional fees being due as well was not nice, so we agreed as a goodwill gesture to write off all our costs to date.

We were able to do this as we have a very close working relationship with this client, and unlike many other accountants, have the flexibility within our own business to do this.

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The sale of a business is something that few business owners have much experience of. It can be a very worrying and stressful time, during which the owner has to continue to run the business without being distracted to the detriment of the business.

From our experience at the outset we were able to advise our clients of the likely problems and pitfalls they would encounter – not just the practical and legal issues, but the emotional pressures too – so they knew what to expect.

Throughout the process Red Dot liaised with the Solicitors for both the sellers and buyers; negotiated changes in the structure of the deal with the Purchaser, and were able to support our client.

The result was a completed business sale, and a very satisfied client who received excellent post tax proceeds.

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