Business Protection Audit



  • Mr A Director Aged 36 – 50% Shareholder; Mr B Director Aged 40 – 25% Shareholder; Mr C Director Aged 42 – 25% Shareholder
  • IT Company established 6 years
  • £4m turnover - £550k Profit Before Tax


Current Arrangements

Client Concerns & Issues

  • The clients required clarification on how their families would obtain value for their shareholdings in the event of their demise
  • They wished to consider the financial impact of any one of them being unable to perform their duties -
    How would they replace the lost revenue?
  • As a Company that is growing & making money – they never seem to have any money
  • They required clarity on their current arrangements & how effective they would be in meeting their objectives


What we did

  1. Reviewed the existing Shareholders Agreement – considering not only what each Director contributed by way of time, money etc but also considering what happens if things go wrong
  2. Agreed a Business valuation – in consultation with their other professional advisers
  3. Established an annual review at which the valuation would be updated & agreed
  4. Method of Directors remuneration reviewed – producing combined Directors Income Tax saving of over £45,000 per annum
  5. Holborn's Ownership & Profit Protection Strategy – formal & tax efficient agreements to enable full value to be realised for shareholdings & business profits to be protected.
  6. Arranged for the Drafting of a Company Will & re-drafting of Personal Wills
  7. 2% of turnover diverted to protecting shareholders interests & securing the ownership & profits of the Company

The Results

  • In the event of a future dispute a robust shareholders agreement will minimize possible ambiguities or mis-understandings
  • The Ownership & Profits of the business are protected in the event of the death or disability of the shareholder/directors
  • From existing cashflow & without detriment to the Company or individuals funds are being accumulated at the rate of £80,000 pa for benefit of the Directors
  • Annual Tax savings of over £20,000 per annum
  • A regular system of review meetings ensures their stated aims and objectives are achieved


This document is provided as a working example and for information purposes only, this should not be construed as financial or investment advice.