RM2 > Corporate Finance

Corporate Finance

  • Helping owners structure and finance Employee Ownership transactions

    Over 175 years cumulative corporate finance & employee ownership experience

The Employee Ownership Trust (EOT) offers significant benefits to vendors selling their businesses.  As a consequence, change of ownership to an EOT has become an increasingly popular and compelling alternative for vendors over traditional exit routes such as sales to private equity firms or strategic buyers. RM2 Corporate Finance focuses on the structuring and raising of capital to support change of control EOT transactions so that vendors get fair value and a path to liquidity.

Click here to download the following resources:

  • An example of our FREE feasibility analysis
  • Financing an EOT or EBT fact sheet
  • Corporate Finance fact sheet
  • An example of a typical leveraged EOT buyout

Criteria

  • £3-100+ million in enterprise value
  • Strong management team

Services

  • Employee Ownership Transactions
  • Capital Sourcing
  • Business Valuations
  • Strategic Advice

Transaction Benefits

  • No capital gains tax for vendors selling more than 50%
  • Sell to a friendly buyer on flexible terms
  • Income tax-free cash bonuses for employees
  • Tax-advantaged employee share schemes for key employees

Transaction Process

  • Representations and warranties required compared to third party sale
  • Flexible terms to meet shareholder needs
  • 3-4 month process to completion

 

Business Benefits

  • Company remains independent
  • Vendors can remain involved
  • Low risk transaction and minimal disruption
  • Founders create a lasting legacy
  • Employee engagement through ownership

With over 175 years cumulative corporate finance & employee ownership experience, RM2 Corporate Finance is the most experienced in the industry.

The use of third party external financing to facilitate a sale to an EOT, combined with the capital gains tax elimination when the EOT takes ownership of over 50% of the business, has made this alternative highly competitive and attractive to business owners.

The ability to structure a vendor loan note that provides both income and equity upside to a vendor makes the sale to an EOT an option every business owner should be considering.

We offer a free, no obligation feasibility analysis. Find out more and book your initial consultation by emailing garry.karch@rm2.co.uk or call 020 8949 5522.

Advisor to middle market business owners.

Over 175 years cumulative corporate finance & employee ownership experience

Over £750 million in enterprise transactions

150+ transactions completed

"For twenty years, RM2 have been advising successful private companies on equity incentives for employees. We have seen thousands of entrepreneurs enjoy the success that comes from shared ownership. Now, we are helping business owners release the value and benefit of employees through employee trust transactions. By combining our deep knowledge of private company share ownership with corporate finance and banking expertise, we have developed a compelling exit solution for and business owner seeking a win-win outcome"

Nigel Mason, Managing Partner

"Years of experience teach us that the best employee ownership transactions are those that work well for all stakeholders. As such, we believe in applying sound corporate finance principles to transactions on behalf of our clients. Successful transactions provide liquidity for shareholders, a significant benefit to employees generally and incentives for key employees that fully align the interests of all parties. We believe our proven ability to raise capital and structure employee ownership transactions from both a corporate finance and employee benefit perspective is unique."

Garry Karch, Managing Partner

The Corporate Finance team

Garry Karch is an experienced Employee Ownership investment banking and corporate finance professional from the United States who joined RM2 to establish RM2 Corporate Finance with Nigel Mason, Director of The RM2 Partnership.  Garry brings over 25 years of Employee Ownership investment banking and corporate finance experience to RM2 Corporate Finance, most recently at Butcher Joseph & Co., the leading ESOP-focused investment banking firm in the US.

Nigel Mason began his career in banking; developing an interest in the potential of employee ownership and, in 1991, co-founded Capital Strategies, a corporate finance adviser specialising in employee buyouts. He was a member of the HMRC Advisory Group which designed the SIP and EMI schemes, and led the employee share plans business of Equiniti from 2002 to 2009. From 2009 he was policy director for the Employee Ownership Association (EOA).

Leon Boros is an experienced corporate finance and employee ownership professional, with over 25 years in the field. Throughout his career, he has originated and closed over £500 million of mid-market deals.  An economics graduate, and winner of the national Lord Kings Norton Award for Economics for his study into the financing of employee-owned businesses, he qualified as a chartered accountant with E&Y.

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RM2 Corporate Finance is registered in England and Wales number 9856329.

Registered office Sycamore House, 86/88 Coombe Road, New Malden, Surrey KT3 4QS 
Tel: 020 8949 5522 Email: corpfin@rm2.co.uk

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Employee Ownership Association logo An Employee Ownership Association Approved Adviser

 
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