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Adding value from an MVL

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For owner-managed businesses, the return of capital from a Solvent (Members’ Voluntary) Liquidation can represent a significant change in how the director-shareholders provide for their financial needs. Regular income generated from ongoing trade will be replaced by the receipt of a lump sum capital distribution.

Such a change in circumstances can present an ideal opportunity to consider the impact on the owners of receiving the distribution from the liquidation. We believe that by looking at our clients’ circumstances in the round, we can add significant value to the MVL process.

While each individual’s situation will be different we have experience of talking to clients about how capital can be used to:

  • create a replacement income stream,
  • ensure future care costs can be met,
  • pass on wealth to younger generations,
  • create trusts to meet schooling/higher education costs of children/grandchildren, or
  • understand the advantages and disadvantages of retaining the capital receipt in your estate as opposed to making lifetime gifts.

A family business may have been built up over a number of years and it is important to ensure that the value created is protected for the family at the end of the businesses useful life.

If you are considering the use of an MVL to wind down your business and return capital to the shareholders, we would be delighted to discuss with you how the capital released can be best used to provide for your ongoing needs.

Please contact me to arrange an initial meeting to discuss how an MVL can help to provide for your family’s financial future.

Henry Page

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