For many business owners, much of their wealth is tied up in their company. At NCMT Holdings, the main shareholders decided it was time to plan an exit strategy and realise some of the value in their business. They asked us for help with a shareholder restructuring.
NCMT Holdings is a UK-based precision engineering company that operates in the aerospace, medical, engineering and oil and gas sectors, with annual revenue of more than £50m.
Mazars already had a relationship with NCMT providing auditing services when the company asked us to help with deal advisory, tax, and financial planning services for a shareholder restructuring.
Given the size and complexity of the deal, our Deal Advisory, Tax and Financial Planning teams came together to provide NCMT with joined-up and coordinated advice. We took the time to understand the main shareholders’ objectives worked seamlessly across each service line to develop the right strategy for the client and execute a successful transaction.
Our deals team helped the company on its fundraising, with the key objectives of:
- Facilitating long-term exit planning
- Transitioning ownership to the second tier of management
- Safeguarding the legacy of the company
- Ensuring the ongoing sustainability of the business
In addition, we offered tax advice that allowed the transaction to be treated in a tax-efficient manner, and provided the shareholders with financial advice that included cash flow planning and an assessment of the wealth they needed to meet their personal aspirations.
The outcome was a transaction that maximised shareholder value in a tax-efficient manner, held the shares in trust for the next tier of management, and ensured the business was not over-leveraged and was in a strong position for the future.
NCMT was satisfied that we were able to negotiate and structure a deal that was tailored to their specific objective and exceeded shareholder expectations while meeting all of the success criteria agreed at the start of the project.
For more information or to discuss how we can help your business, contact us and a member of the Mazars team will be in touch to discuss further.