Succession buyout of design agency

PEM advised a design agency on a succession buyout to lock-in a new ownership structure for continued business success.

The founding owner-director of the business wanted a managed process which would facilitate his staged exit from the business in the next five years. A succession buyout plan was presented by specialists at PEM which would allow the founder to gradually handover equity to a capable senior management team whilst unlocking cash tax-efficiently which would form part of his retirement provision.

For nearly 30 years, this creative agency has specialised in branding and packaging design, working with some of the UK’s most well-loved FMCG brands. It creates visual product experiences to engage the buyer throughout their journey, be it in-store or online.

We worked closely with the owner of the business on an approach that would work well for him, and also for his team who were to succeed him.

The succession deal was primarily financed by a Vendor Loan Note arrangement with the founding director retaining a minority stake in the newco.

Legal advice was provided by Duncan Walker of BDB Pitmans.