The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
An MBO takes place when the management team, which typically includes directors and first tier management, enters into an agreement to purchase an existing business. The usual form of an MBO is either:
The management team will invest funds into the new structure, which will usually consist of a combination of share capital and loan financing (eg loan notes). By owning an equity stake in Newco, the management team have the incentive of benefiting from the capital growth of the company on future disposal of their shares. It may be possible that the transaction can be structured a way that the investors benefit from EIS relief. See the Enterpris
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