New Division for AAB – ‘Expertise to Entrepreneurs’ (E2)

Anderson Anderson & Brown LLP has launched a new division E2, ‘Expertise to Entrepreneurs’, which combines the firm’s considerable experience and expertise in advising Entrepreneurs. Throughout the life of an investment E2’s involvement assists its entrepreneurial clients gain the right commercial and tax advice to maximise their return. E2 was successfully launched to the North East at a joint breakfast seminar with Kelvin Capital on 8 October.

At the breakfast, E2’s Graeme Allan explained the commercial and tax efficiencies that can be accessed where an investor takes the time to gain effective entry to exit advice. Establishing an optimal trading structure with a strategic plan will enhance the probability of success and minimise taxes on a future exit.

The opportunity for E2 to partner with Kelvin Capital, to establish a platform in Aberdeen for co-investment, was born out of the recent economic crisis. It has been increasingly difficult for high growth companies to access funding between £250k and £2.5m, with the result that such companies are obliged to invite equity investment. At the same time, wealthy individuals are experiencing a reduction in investment returns from bank deposits and alternative risk based investments are being considered.

As a result of these difficulties wealthy individuals in the North East are increasingly contemplating a return to business through investing in high growth opportunities which offer the possibility of returns which reflect the risks of investment in unquoted companies. Given the North East’s exposure to the Oil and Gas industry many of the investments being contemplated see the investors returning to the industry which was the source of their original wealth.

Therefore, it is on the back of this that Kelvin Capital will establish an Aberdeen based platform through which opportunities for investment in unquoted companies will be showcased. Although the platform will have a focus on opportunities in the Oil and Gas industry, Kelvin will use their network in the central belt and London to bring opportunities in other industries to the table. Kelvin’s John McNicol used the breakfast to introduce the co-investment idea, explaining the reduced risk and other benefits delivered from investing in a portfolio of companies rather than in a single business. John highlighted that the showcase events provide a platform for like-minded Entrepreneurs with the means, and appetite, for investment to regularly meet and:

· Receive presentations from high growth businesses with a need for an injection of funding and commercial advice, with a view to co-investment;

· Discuss other co-investment opportunities and business issues with fellow Entrepreneurs;

· Discuss tax reliefs and opportunities.

The first event will be held in the evening of 28 November at the offices of Anderson Anderson & Brown LLP.