Mike's Case Study

Mike was in his mid-60s and planned to retire from the manufacturing business that he set up with his son, James, in about 5 years' time.

Mike's main financial priorities were:

• To formulate an exit strategy that would allow him to sell his shares in the company to his son for a sum sufficient enough to sustain his desired lifestyle through retirement
• To ensure that his wife and children were sufficiently protected from the financial consequences of his death

As part of the Business Planning module of the Financial Management Programme, we reviewed the share structure of Mike & James' company, and we were able to immediately save each of them over 1,000 pounds per month in income tax and national insurance contributions by altering the way in which they paid themselves.

We also advised Mike on the preparation of an effective Will and a Cross Option Agreement, and arranged for a solicitor to draft the deeds, which together ensured that their shares and other assets were distributed properly, in a way which greatly reduced Inheritance Tax liabilities.

Our life-long cash-flow forecasts enabled us to calculate how much Mike would need to raise from the sale of his shares in the company to James, in order to sustain his desired lifestyle through retirement. This re-assured Mike that his financial position was secure, and allowed James to plan the buy-out accordingly.

What Mike said about Cilbenrick:
"The level of detail is excellent and, though requiring accurate and in-depth input, it has allowed important decision making to take place. Without this process we would still be wondering whether these things were possible and what effect this would have in later life. Now we know!"