Whether your requirements are the financing of an existing business, acquisition of a new business or a management buy out or a management buy in, we provide a comprehensive service for your financing requirements. Using HLB Nathans excellent contacts within the banking and investment community we can offer advice on different financing options and where necessary provide introductions to lending institutions.  Additionally, HLB Nathans has unrivalled experience assisting growing businesses raise finance via the Business Expansion Scheme (BES). We are one of the largest advisors to companies using BES in the South of Ireland.

The Business Expansion Scheme is being renewed from 1 January 2007 for a seven year period to 31 December 2013. The BES company limit is being increased from its current level of €1 million to €2 million, subject to a maximum of €1.5 million to be raised in a twelve month period. The investor limit is being increased from its current level of €31,750 to €150,000.

To provide sufficient time for BES designated funds to raise finance from investors, it is intended to provide that, where any amount raised by a Designated Fund up to 31 January 2007 is invested in qualifying companies before 31 December 2007, the individual investors who subscribed to the funds will have the option of claiming tax relief on their investment for either the 2006 or 2007 tax years. Similarly, in the case of direct investment by investors in qualifying BES companies, where eligible shares are issued before 31 January 2007, the investor will have the option of claiming tax relief on their investment for either 2006 or 2007.

The Seed Capital Scheme is also being renewed from 1 January 2007 for a seven year period to 31 December 2013. The SCS permits employees who leave employment to invest in certain new businesses and take up a job in the relevant business to claim a refund of tax for up to the previous six years. An unemployed person or a person who was made redundant may also claim the relief. The level of an individual’s tax refund depends on the level of the investment and the amount of tax the individual has paid in previous years.

The new BES limit of €2 million will also apply to the SCS, subject to a maximum of €1.5 million to be raised in a twelve month period. The investor limit is being increased from its current level of €31,750 to €100,000.

As the BES and the SCS are State aids, the continuation of the schemes and the proposed changes will require the approval of the European Commission and will be subject to assessment by the Commission under the new “Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-Sized Enterprises” (2006/C194/02) published in the Official Journal of the European Union on 18 August 2006.

Further technical amendments will be brought forward in the Finance Bill.

HLB Nathans has a tradition of excellence in audit and business assurance. Drawing on this expertise the Corporate Finance Department offers a comprehensive due diligence service on the acquisition or disposal of a business.
From the initial meeting to our comprehensive final report we establish the priorities of our client and focus our work accordingly.