Pensions regulations change prompts process simplification

Our Client 

A business providing transport services to public and corporate clients with a small in-house finance team required support to deal with changes around pension regulations. At the same time, the client needed to obtain additional finance during a temporary reduction in trading arising from decline in local economy. 

Our Approach 

  • Provided a breadth of financial support services 
  • Simplified their process to address regulatory changes 
  • Supported discussions with finance companies and ensured interest rates were appropriate 
  • Prepared cash flow projections 
  • Prepared management reports to meet finance companies ongoing requirements 
  • Gave assurance that the pension provider selected was suitable for the needs of their employees 

The Outcome 

  • The client could rely on our expertise to comply with new legislation 
  • Their management team could focus on operational matters 
  • Funding requirements highlighted in projections 
  • Introduce lenders not known to client 
  • Management reports that are useful for making decisions 
  • By working with the client for over 15 years we understood the business model which gave our client confidence in our ability to deliver 

Our accreditations

Venue saves time on weekly payroll for 250 employees

Our Client 

An entertainment venue with limited resource in their finance team spending significant time on weekly payroll for up to 250 weekly paid employees. 

Our Approach 

  • Took the time to truly understand the client’s needs 
  • Tailored approach to outsourcing payroll in order to save the client time 
  • Implementation plan for moving staff to monthly payroll instead of weekly 
  • Payroll data was capture by implementing the latest software 

The Outcome 

  • Bespoke reports for management were produced so the client was assured they were in line with regulations and had useful management data to hand  
  • Reduced time requirements with monthly payroll 
  • Internal software costs reduced 
  • Finance team could focus on other areas 
  • Management reports that are useful for making decisions
  • Time invested at the outset to develop a robust system, any future changes can be easily implemented 

Our accreditations

Business expansion identifies potential tax issues

Our Client 

A local retailer was looking to expand their market coverage by opening new branches through acquisition to then subsequently develop the facilities to increase their service offering. 

Our Approach 

  • Assisted with financial projections for bank funding 
  • Advised on appropriate deal structure  
  • Advised on the type of capital expenditure that would give best tax allowances 
  • Considered tax position of seller 
  • Identified areas where investment could be more tax efficient 
  • Practical guidance on benefits of expansion 

The Outcome 

  • By providing support through the acquisition process our clients limited resources could focus on their day job  
  • Through supporting with due diligence and review of legal agreements we could highlight any risks that existed and give client ability to make decisions that gave peace of mind 
  • Support on areas where they didn’t have expertise internally 
  • Potential tax issues identified 
  • Allowed client to focus on commercial aspects of the investment 
  • Guidance on best form of capital expenditure 
  • By providing audit and corporate tax services for several years the client had confidence that we could support them as they looked to grow their business 

Our accreditations

Start-up spirits distiller benefits from expertise

Our Client 

A start-up Spirits Distiller based in Scotland. The entrepreneur behind the start-up had no previous experience of running a business. 

Our Approach 

  • Worked with the entrepreneur to create a business plan that included mapping out the strategy, the brand and the route to market and conduct market research 
  • Prepared a financial projection model to ascertain the level of investment required and trading levels required to make it a viable business proposition 
  • Provided all the necessary accounting compliance, accounting software, tax compliance and other support as necessary 
  • Worked with entrepreneur to identify likely sources of investment for the business

The Outcome 

  • Gave the client peace of mind that we are managing every aspect of the start-up and compliance of the company 
  • Worked with the entrepreneur to help them to evaluate whether the initial concept was a viable business proposition 
  • Structured the amount invested by the entrepreneur in a tax efficient manner 
  • Introduced the entrepreneur to high-net-worth individuals that provided follow on investment to the company once the entrepreneur had started trading and proven the concept 
  • Structured investors’ investment in a tax efficient manner utilising all available tax reliefs 
  • Providing ongoing support to the client as the business continues to grow 

Our accreditations

International acquisition of privately owned UK business

Our Client 

An international North American listed and based specialist foods producer acquired a privately owned UK business.  

Independent project management was required to plan, manage and formalise the integration of the two businesses over a fixed term period. 

Key challenges were differing working styles and processes, culture and geography and shared / different international products and markets. 

Our Approach 

  • Applied specialist software to manage integration in real time globally 
  • Established a physical and virtual project management office 
  • Defined and led sub-project teams to handle more than 40 work streams 
  • Produced a tailor-made and flexible integration project management plan software solution to specific requirements 
  • Commissioned functional sub-teams to co-ordinate the integration projects 
  • Aligned process to the company’s strategic framework 

The Outcome 

  • A tailored solution that addressed softer issues such as cultural and business style differences 
  • Imbedded integration team in the acquired business which gave peace of mind 
  • Maximised collaboration and identification of synergies across the two businesses, avoiding “them and us” from the outset 
  • Removed the strain and pressure of managing integration, allowing for business and operational continuity without distraction 
  • Broke down an overwhelming and resource heavy process into manageable and realistic planned activities
  • Tailored a flexible integration planning software solution to specific requirements

Our accreditations

Minority shareholder retires selling equity

Our Client 

Becoming increasingly remote in company operations, the minority shareholder of a long-established fishing company expressed his interest to exit the company and retire.  

The remaining company shareholders wished to purchase of the shares and at the same time wind-up an existing Partnership in order to consolidate operations. 

AAB were approached to advise on how to tax efficiently to achieve the above objectives and ensuring that no more than a fair market value was paid to the exiting shareholder. AAB were responsible for project management of the transaction to completion. 

Our Approach 

  • Negotiated an exit price with the exiting shareholder using our Corporate Finance team’s expertise in undertaking company valuations 
  • In relation to the company, we liaised with HMRC to gain Advance Clearance for the purchase of shares from the minority shareholder, ensuring the disposal would qualify for Capital Gains Tax treatment, achieving an efficient tax position for the exiting shareholder 
  • In relation to the Partnership, we confirmed the most efficient way to allow for the winding-up, including identification of the tax reliefs that were available 
  • Prepared a valuation for the Partnership and the Company, including the fair market value of the fishing operation consisting of vessels, Fixed Allocation Quota units and licences along with considering the value of minority shareholders’ interests 
  • Lead the implementation and project management of both transactions, including supporting the existing accountant with cessation accounts for the partnership 
  • Reviewed all legal documentation as prepared by lawyers, to confirm these were effective from a tax perspective and achieved the desired objectives and outcomes 

The Outcome 

  • Peace of mind for all parties that a fair market value was paid for the shares acquired from the minority shareholder 
  • Consideration given to all taxes including Capital Gains Tax, Income Tax, Corporation Tax, Inheritance Tax and VAT to ensure the transactions were as efficient as possible 
  • By project managing the transactions, we allowed the shareholders to focus on the “day-job” during the COVID-19 pandemic, ensuring all parties, including other professional advisers involved in the transaction, were aligned towards the key objectives and deliverables, allowing for the transactions to be completed in a timely manner 
  • AAB’s expert tax team highlighted practical steps that could be undertaken now to minimise tax liabilities in the future covering Capital Gains Tax and Inheritance Tax 

Our accreditations

Fishing partnership develop strategy to mitigate tax liabilities

Our Client 

A profitable fishing partnership, with individual and corporate partners, who wished to consider their business structure and options to mitigate tax liabilities 

Our Approach 

  • Reviewed current business structure and considering whether incorporation from a partnership to a limited company was an option; outlining the potential benefits of incorporating the partnership business including analysis of tax savings together with other non-tax considerations 
  • Prepared a Project Plan for implementation of business transfer, which included AAB acting as project leads 
  • Provided accounting and tax support throughout implementation to ensure all client objectives met 
  • Liaised with the client, legal advisors and bankers 
  • Assisting with on-going compliance matters following business transfer. 

The Outcome 

  • AAB provided the client with a business structure that meets their needs for future growth plans and objectives 
  • By detailing the main considerations of an incorporation at the outset of our discussions, as well as the impact this would have on our client’s business, this gave our client reassurance that an incorporation was the right course of action for them and ensured no unexpected surprises arose during the process. 
  • Reduced overall tax costs and liabilities of the business and associated partners 
  •  By acting as project leads for implementation and taking overall responsibility for the process, this allowed management to focus on day-to-day operations 

Our accreditations

Business expansion through growth capital funds

Our Client

Successful UK based owner-managed aquaculture business which has experienced significant growth and expansion of its fleet of vessels, geographical reach and service offering.

 

Our Approach

  • Arranged discussions with our client to identify their key objectives together with the quantum and timing of the proposed funding requirement
  • Prepared integrated financial projection models with sufficient detail and supporting assumptions to satisfy the funding providers
  • Advised the client in relation to the fundraising process
  • Assisted in on-going annual forecasting process including population of accounting system with financial projections model

The Outcome

  • Our client obtained growth capital funds to facilitate the purchase of additional vessels to the fleet to enable future expansion
  • We assisted to refinance existing debt into a single monthly repayment to ease working capital burden, in turn reducing interest and debt payments
  • AAB provided the client with the ability to actively monitor monthly performance and cashflows against budget
  • Our team provide continued support following transaction including populating their existing accounting system with the financial projections mode

Our accreditations

2021 Year in Review: Food, Drink and Hospitality Sector

As we look back over the food, drink and hospitality sector in 2021 what are the key words that have shaped the year? Covid, Brexit, human capital challenges, sustainability and organisational agility all immediately come to mind.

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Our accreditations

Location is no longer a barrier for your finance function

There is a big push to ‘shop local’ to help reduce the carbon footprint of our food and drink products from field to plate. 

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Our accreditations