We have an important role to play in evaluating and developing proposals for a financial settlement. Based on a consideration of the parties’ requirements, we are often instructed to assist in establishing how a settlement between the parties is to be effected by reference to the cash-flow and fiscal consequences of various proposed courses of action. An important part of this work may involve identifying ways in which funds may be raised without affecting adversely the prospects of businesses continuing to be run by existing owners.
We can assist in evaluating the prospects of realising funds through the disposal of minority shareholdings, the sale of “own” shares or the raising of funds against shareholdings. We are often instructed to consider the liquidity available to effect distribution, e.g. by selling “surplus” assets or raising funds through the provision of property as security.
Our forensic accounting work on settlement proposals may entail identifying suitable ways of distributing available funds after taking general tax aspects into account, e.g. by way of remuneration, dividend payments or the repayment of amounts included in directors’ loan accounts.