Archive for the ‘Family Business’ Category

Family businesses: three warning signs to watch for

Posted on: April 29th, 2014 by Leighton Reed No Comments

There are around three million family run businesses in the UK which employ over nine million people.

Managing a family firm has its own layers of complexity which owners and managers need to be mindful of.

There are three key signs to watch out for:

  • High turnover of non-family staff
  • No documented long term strategic plan
  • No documented succession or personnel plans

Here’s why these signals could be an indicator that all is not well.

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Owner-managed business: top tips to plan for a smooth sale

Posted on: April 3rd, 2014 by Liz Mounfield No Comments
Geraint Tilsley

Geraint Tilsley, Partner, Corporate, Geldards LLP

As the economy picks up and business confidence improves, private company mergers and acquisitions are firmly back on the radar.  If you’re thinking about a sale of your business, there are some key points worth considering before you even embark on any formal process which can really smooth the path to an eventual exit and help ensure that you achieve maximum value for your company:

1. Who’s your likely buyer?

Is there a push in your sector towards consolidation?  If so, a trade buyer may be a possibility.  Do you have an ambitious management team in the business?  If so, perhaps a management buyout (MBO) could take place.  Either way, many of the key issues outlined below will apply, but an MBO could deliver an easier exit for you as seller(s) both in terms of the sale process and also because you’ll almost certainly have fewer ongoing contractual warranty and indemnity liabilities under the business or share sale agreement.  The trade-off is that the price you get on an MBO may be a bit less than on a trade sale.

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MHA Agricultural Insight – March 2014

Posted on: March 24th, 2014 by Sarah Case No Comments

Farmers are optimistic about growth but raise concerns about succession and expansion plans.

Farmers are optimistic about growth but raise some concerns about succession and expansion.

MHA, the national association of accountants and business advisers, talked to over 100 farmers at the LAMMA Show in January. Several key themes emerged from those we spoke to:

  • Despite concerns about the impact of the weather, optimism remains high with 64% anticipating growth and 31% expecting growth of 10% plus over the next 12 months.
  • 53% are planning on increasing their acreage in 2014 but many mentioned that a lack of available land could be a limiting factor.
  • Succession planning is a concern for 40% of those we spoke to, a high proportion given the family nature of the farming businesses we spoke to.

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Managing change in family businesses

Posted on: January 8th, 2014 by Liz Mounfield No Comments

There is no escaping the fact that change is a fact of life. And it is inevitable for all businesses too – regardless of their size or sector. However, the effective management of change is essential for any organisation, but especially so for family-run businesses.

Family businesses are often more resistant to change, which is understandable because any alteration to the business not only has an impact on the company but on the family as well. However, there may be times when they are forced to adjust in order to adapt to the environment. This has been reflected in the majority of family businesses we have dealt with over the past year; when the economy has forced them to be more efficient and effective in their activities.

As well as economic changes there are a number of external pressures, forced on family businesses, which require them to review their activities, including:

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Corporation tax delay for family firms

Posted on: January 2nd, 2014 by Leighton Reed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Family-owned businesses may be able to use an Autumn Statement initiative to delay corporation tax payments and boost their cash flow.

Currently, many family-owned companies have to pay their tax in quarterly instalments where they are classified as being under common ownership — for example, one company owned by a husband and another by his wife could be caught by this rule, which also applies for civil partnerships.

However, from April 2015 such firms may be able to pay their tax nine months after the end of their tax year — as long as their companies are not directly linked within a group.

For more information on the details in the above article please contact us on [email protected]

Employment Allowance for SMEs

Posted on: December 19th, 2013 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, MHA Broomfield Alexander

Sarah Curzon, Tax Director, MHA Broomfield Alexander

Many small businesses identify at an early stage that they need help in managing, growing and developing the business (recognising both the strengths of the business owner but also the strengths that others can bring).

Some businesses seek outside support but others would like to take the bold step to employ staff.  One hesitation in taking this step can be the national insurance cost of employing staff members.

In the March 2013 Budget the Government announced that it would introduce an “employment allowance” of £2,000 a year for all businesses, charities and CASCs to offset against their liability for Class 1 secondary NICs, (to be implemented from 6 April 2014).

Details of this continue to be announced by HMRC:

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Growing your family business

Posted on: October 21st, 2013 by Liz Mounfield No Comments

Twitter Logo V1Growing your business and preparing your exit strategy will be the topics covered at the next meeting of the Family Business Partnership on Thursday 24 October.

Making the most of your business – from beginning to end will see guest speakers Gareth Jones, of the Welsh Innovation Centre for Enterprise; and Annie Finlayson, of Caerphilly-based PHS; talk about their extensive experience in business and answer questions from guests. TV producer Jos Andrews will chair the discussion.

Gareth has first-hand experience of the problems of getting a business financed and started as well as the on-going issues all entrepreneurs face. Once successful – how to exit the business will be addressed by Annie Finlayson, who is director of acquisitions and a business development strategist at PHS.

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Family Business Partnership

Posted on: July 25th, 2013 by Liz Mounfield No Comments

Twitter Logo V1The launch event of the Family Business Partnership took place on the 12 June 2013.

Present were 50 delegates and our panel which was made up of the following:

• Dr Caroline Bird, Cardiff Business School
• Steve Gardener, D&G Office Interiors
• Glyn Jones, Princes Gate Water
• Anthony Griffin, Griffin Mill Garages Ltd

Sion Barry, Business Editor of the Western Mail, led the panel in discussions around their experience either in or with family businesses.

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8 rules of governance for family businesses

Posted on: July 23rd, 2013 by Mark Jones No Comments
Mark Jones, Director, MHA Broomfield Alexander

Mark Jones, Director, MHA Broomfield Alexander

Running a family business can be a juggling act; the needs of the business to grow and develop have to be balanced against the needs and expectations of family members.

Establishing a governance framework for your family business can improve business performance and help satisfy the expectations of all family members. It is important that the business and family rules are applied in a way that does not impact adversely on the success of the business.

For a family business to succeed it is important that a professional and structured approach to the management of the business is undertaken as this will serve everyone’s best interests.

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