Thomas Dalby (Gabelle) answers a query about an employee share scheme for a company that had been sold to a private equity house.
Question
My client is a company whose former owners sold out to a private equity house (‘the House’) a year ago. As part of that transaction a number of members of the senior management team subscribed for shares in the company at par (i.e. they paid the shares’ nominal value and nothing else). Since the deal it has become necessary to recruit two further managers who have been promised an award of free shares representing 4% of the company. The company is starting to perform well and repay the debt used to fund the deal which means that there may be some current value in the company’s shares. What routes are open to my client to satisfy...
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Thomas Dalby (Gabelle) answers a query about an employee share scheme for a company that had been sold to a private equity house.
Question
My client is a company whose former owners sold out to a private equity house (‘the House’) a year ago. As part of that transaction a number of members of the senior management team subscribed for shares in the company at par (i.e. they paid the shares’ nominal value and nothing else). Since the deal it has become necessary to recruit two further managers who have been promised an award of free shares representing 4% of the company. The company is starting to perform well and repay the debt used to fund the deal which means that there may be some current value in the company’s shares. What routes are open to my client to satisfy...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
