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History
Following an introduction from a mutual contact,
we became involved in a young expanding software development
company.
It was facing a situation of much opportunity,
but required appropriate finance in order to sustain its history
of growth and to enable it to retain its key employees. The
founder shareholder was unwilling to lose control of the business.
SME Corporate Finance Involvement
The instruction demanded a detailed understanding
of the client's underlying needs so that a commercially sound
and tax efficient strategy could be proposed.
Once that strategy was approved, we worked very
closely with the company's lawyers to ensure that the legal
documentation, necessary to effect the amendments to the company's
Memorandum and Articles of Association, did not conflict with
the founder shareholder's interests or overall aims.
At the conclusion of the strategy, the company
enjoyed its cash injection and the key members of staff became
minority shareholders, with the founder shareholder maintaining
control.
Several months after completion of the strategy,
the new share holding philosophy attracted further cash injections
with the result that a subsidiary was set up in the USA.
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