ISSUE 18
PANEL REVIEW FIND OUT ABOUT THE ENTREPRENEURS & EXIT PLANNING EVENT
MEETOUR MEMBERS MEDITATION FOR MODERN LIVING THE BENEFITS OF PRACTISING MEDITATION IN TODAY’S DIGITAL WORLD
CHINA NOW A PCD CLUB ORIGINAL DOCUMENTARY
PROMOTION ROULETTE HOW TO COPE AS A NEW LEADER
SPOTLIGHT ON
MANCHESTER
David Bell, founding director. 06 February in London
W E L CO M E F R O M DAV I D B E L L
Welcome to Number 18 WHAT A RESPONSE WE’VE HAD
of articles over the next few months.
TO PCD CLUB SO FAR THIS YEAR!
Both focus on mindfulness and
WE HAVE KICKSTARTED THE
wellbeing in the workplace; Executive
DECADE WITH SELL-OUT EVENTS IN
Coach Mark Evans offers some words
LONDON AND MUMBAI, AND ARE
of wisdom regarding some of the
LOOKING FORWARD TO OUR FIRST
challenges that go hand-in-hand with
NEXTGEN MEETING OF 2020 TAKING
promotion and new leadership roles,
PLACE ON 5 MARCH FOR YOUNG
while Niamh Keane discusses the
PROFESSIONALS IN THE PRIVATE
benefits of practising meditation in
WEALTH SECTOR.
today’s digital world.
Following Singapore government
To understand why we are returning to
advice to international event
Manchester in March, take a look at our
companies, we decided to postpone
spotlight piece which highlights the
our dinner in Singapore until later in
emergence of private wealth and rise of
the year. We will be sure to keep you
inward investment in this global city.
updated when we are in a position to reschedule.
We welcome contributions from thought leaders within the industry,
It is encouraging to see an increasing
including KPMG, Hawksford and
number of members engaging with
Locate Guernsey; we recap our
our monthly magazine; if you are a
recent panel discussion in London on
prime or corporate member, please
Entrepreneurs and Exit Planning;
reach out to lucy@pcd.club to discuss
and we introduce some of our
making future contributions as we
members alongside our own Client
continue to develop the publication.
Administrator.
In this issue, we welcome two new
As always, check our calendar for
columnists who will be sharing a series
information on all upcoming events.
3
D I N N E R D E S T I N AT I O N S
Dinner Destinations for 2020
Isle of Man
Guernsey
New York
Jersey Miami
4
D I N N E R D E S T I N AT I O N S
Manchester London Zurich Geneva Shanghai
Hong Kong
Dubai Mumbai Nairobi Singapore
Cape Town
5
ENTREPRENEURS AND EXIT PLANNING
Entrepreneurs and Exit Planning Thursday 6 February
Ken Chapman, Head of
Trowers & Hamlins
Wealth Planning at EFG in London, opened out
PCD MEMBERS ENJOYED AN
the event with a story
INTERESTING BREAKFAST PANEL
of a client he advised many years ago.
DISCUSSION ON THE TOPIC OF
The client in question had built a highly
ENTREPRENEURS AND EXIT
successful business that was listed on
PLANNING, WHICH IS AN EVER
AIM. In the weeks prior to the company
POPULAR TOPIC AMONG OUR
moving to list on the main market, Ken
MEMBERS. THE STORIES OF THOSE
advised him to consider some estate
WHO BUILD BUSINESSES ARE
planning opportunities that would not
USUALLY FILLED WITH EXAMPLES
exist when that transition took place.
OF ENDEAVOR, RISK TAKING AND
The client was naturally absorbed
DECISION MAKING, INTERESTING TO
in the complexity & liquidity event
THE PROFESSIONAL ADVISORS THAT
arising from the listing, so decided not
SEEK TO KEEP THEM ON THE RIGHT
to pursue the options available. Six
TRACK.
months later, Ken saw his client and
Watch Highlights from the Event
6
ENTREPRENEURS AND EXIT PLANNING
discussed the limited options available to mitigate the now substantial inheritance tax liability on his estate. The message is
The message is clear; to undertake any necessary planning in advance...
clear; to undertake any
the transaction, a big company is more likely to give concessions on key points in the interest of getting the deal done. Getting a good legal team
necessary planning in advance to avoid
in place is vital to represent the seller
missing opportunities in the run up to a
versus a buyer equipped with leading
transaction.
M&A firms.
Our panel shared their substantial
If businesses are well prepared,
experience on advising entrepreneurs
transactions can be swift, but sellers
on their journey to sell the businesses
should be prepared for a long, arduous
they had established.
and complicated process, often
Derek Zissman, the
requiring them to spend weekends
founder of Crossroad
and evenings on the transaction while
Partners, draws on his
running the business during the day. Hannah Wailoo, Partner
M&A experience of 37 years at KPMG. In terms of preparation
in the Private Wealth
for sale, Derek noted early preparation
team at Trowers &
as vital, before answering two key
Hamlins, discussed
questions: Why are they selling? What
some of the key tax issues that clients
are they going to do next? He saw too
might face, which are principally CGT
many founders without a clear answer
on sale of shares and IHT considerations
on these questions, suffering ill health
pre and post the liquidity event.
or boredom which brings them back
An important consideration is the
into new ventures, which often end in
availability of Entrepreneurs Relief (ER)
near disaster.
to reduce the tax rate on the capital gain arising from the sale. Does the
The timing of sale can be driven
business qualify and can spouses
by a number of factors: health; tax
or family members be involved to
considerations; unexpected life events
maximise the relief available? Trusts
that were not foreseen. Derek advised
can be used for estate planning where
never to sell to an entrepreneur as they
the shares in the business qualify for
will squeeze every drop of value from
business property relief. 7
ENTREPRENEURS AND EXIT PLANNING
Adrian Jones, Partner
dependent on certain key customers?)
in the Corporate team
Past projections are useful to compare
at Trowers & Hamlins,
with actual results to show how
gave some insight on
accurate they are at forecasting, but
how the Due Diligence in conducted
he suggested placing no reliance on
to help the transaction move smoothly.
numbers any more than 2 years ahead.
The sellers want to present the business
The next 12 months projections are the
in the most favourable light to prevent
most accurate and reliable. Honesty in
the buyer from reducing the value
financial disclosure is critical.
of their offer during the due diligence process. This might include checking the Company Registers, Companies House records & filing, IP rights and ownership (particularly Software). Data protection and
The sellers want to present the business in the most favourable light to prevent the buyer from reducing the value of their offer
any potential breaches
The role of the founder of the company going forward is another important aspect. Will they stay on afterward? Derek advises his clients to walk away after the transaction, unless there is a compelling reason to stay on and only then,
of GDPR can carry substantial penalties.
provided a well negotiated contract is
The buyers need to understand the way
in place. Often, when founders believe
the company uses data. Any disputes
they can repeat their success, they start
with HMRC, employees, or other parties
another similar business, most of which
can be settled in order to maintain
end in failure, because they no longer
focus on the big picture.
have the hunger and drive and worse, they fail to recognise the industry has
In terms of preparing
moved on from their original insight
Business Plans, Derek
and innovation.
noted that working with a strong CFO is essential
Ken asked the panel on the importance
for the transaction to move forward as
of tax breaks in entrepreneurship.
the buyer is interrogating the financial
Hannah commented
information of the company. Buyers are
that entrepreneurs
looking for the quality of the earnings
start businesses out
and certainty of revenue (are they
of passion rather 8
ENTREPRENEURS AND EXIT PLANNING
than due to beneficial tax breaks.
client accordingly. Confidentiality is a
The tax incentive schemes can be
key consideration; how to keep the deal
complex and are rarely understood by
secret is a challenge as once open news
founders business running companies.
in the market, valuations will fall.
Entrepreneurs Relief and Business Property Relief are valuable and likely
Ken asked the panel what do sellers
to be reviewed by the government;
do once the transaction is complete?
changes could be made to both reliefs
Hannah said they often
in the March budget.
take a break and go on holiday. When returning
Why do deals fall over?
they are increasingly
Derek noted that it can
interested in pursuing passions like
come down to a difficult
restoring cars or sailing a boat, but
founder, who may
increasingly there is demand for
change their mind about selling the
philanthropy. This can be facilitated by
company. The buyer may pursue other
legal structures during life or on death
targets in these circumstances. The
with give the founders involvement
founder’s valuation of the company can
and satisfaction post sale. Trust in their
be unrealistic, but a good advisor will
relationship with advisors is key.
be clear on the price and advise their
Do you want to sponsor a panel event in 2020? Click to email sponsors@pcd.club for more information.
9
S P OT L I G H T O N M A N C H E S T E R
Spotlight on Manchester LARGE NUMBERS OF WEALTH
thriving community of businesses. In
MANAGERS HAVE BEEN ATTRACTED
fact, the number of small and medium-
TO OPPORTUNITIES ARISING IN THE
sized businesses in the north west
NORTH WEST IN RECENT YEARS. TWO
has hit a record high in recent years,
THIRDS OF WEALTHY INDIVIDUALS IN
with the Office for National Statistics
THE UK LIVE OUTSIDE LONDON AND
reporting that there were 28,605
THE SOUTH EAST, AND GLOBAL CITIES
businesses with between five and
LIKE MANCHESTER ARE WORKING
249 employees in the region in 2018.
HARD TO DELIVER A UNIQUE
Resident start-ups include AO.com
OFFERING: WORLDWIDE ACCESS
and boohoo.com, both of which IPO
COMBINED WITH SPECIALIST LOCAL
above $1 billion, and giants like BBC,
KNOWLEDGE.
Google, IBM, Amazon and GCHQ. This economic growth has in turn sparked
After London, Manchester is England’s
a rapid escalation of employment
most visited city with a growing tourism
opportunities, the majority of which
economy, while its tech, science and
are absorbed by the city’s large,
media industries are on the rise. Indeed,
internationally competitive university
regional regeneration has supported
demographic.
this concentration of wealth, with Manchester, Leeds and Liverpool all
Equally, interest and investment from
boasting recently reinvigorated city
overseas continues to grow rapidly. A
centres. According to the 2019 UK
report released by the British Foreign
Digital Technology census, Manchester
Policy Group in 2019 supports this
was second only to London in terms
vibrant picture of Manchester as one of
of the innovation economy; and is
the most desirable locations for foreign
therefore at the centre of the new
businesses in the UK. The report ranked
technologies shaping the future.
Manchester second only to London in receiving foreign direct investment,
Arguably therefore the fastest growing
with the current level now an estimated
city in the UK, Manchester boasts a
£2.7 billion and international trade 10
worth £5.36 billion in value of goods.
to capitalise on opportunities for collaboration in areas such as trade,
When it comes to seeking inward
tourism and academia.
investment in the UK, China is at the
to participate in Manchester’s growth,
Manchester Dinner 19 March 2020
with the Manchester-China Forum
PCD Club is delighted to return to
estimating that citywide development
Manchester on Thursday 19 March at
projects worth £2.1 billion benefitted
the Edwardian Manchester Hotel. The
from Chinese investment in 2016 alone.
Gold sponsors for the event are IQ:EQ
In sport, China Media Capital and CITIC
from the Isle of Man. The Silver sponsors
Capital invested £265 million in City
are Sarasin & Partners from London,
Football Group, Manchester City FC’s
Bank Safra J Sarasin from Geneva,
holding company, and there are now
ETC Tax from Cheshire, and LocateIM
even direct flights to Beijing and Hong
from the Isle of Man. A drinks reception
Kong.
and networking dinner will follow a
top of the list. An abundance of Chinese businesses have already been attracted
chaired panel discussion on Relocation Indian investors are following this trend,
& Mobility into and out of the UK for
with Salford’s MediaCityUK benefitting
HNW clients.
from substantial funding by Aegis and Vistaar Productions, and 2018 seeing
For more information and to register, click here
the launch of the Manchester India Partnership, an initiative established 11
WHAT’S W H AT ’ S NNEXT EXT?
What’s Next?
Networking Dinner
Networking Dinner
Manchester 19-03-20
London 26-03-20
Networking Dinner
Networking Dinner
New York 12-04-20
Guernsey 20-05-20
View all Upcoming Events
12
MEET OUR MEMBERS
Meet Our Members: Jerry Giles personal nature, you get into clients’ lives and with the aim of helping them. In the role we make a real difference, guiding clients when they have previously received poor and in many cases costly advice. Why did you join PCD? Joining the PCD Club was an obvious step for ETC Tax. PCD events are always well attended and provide a great opportunity to network and share all that people have to offer. Being part of PCD enables us to meet likeminded professionals from a variety of
What do you do for ETC Tax?
specialisms and locations, making new
I am an Associate Director; my primary
connections.
role is to look after London and South East. I mainly help clients save money.
At which PCD event will members see
I work with a variety of people from
you next?
individuals, entrepreneurs, businesses
We are co-sponsoring the PCD event on
& other professional advisers achieve
19th March in Manchester, 4 members
their personal & commercial objectives,
of the ETC tax team will be attending.
helping them to be more tax efficient.
We look forward to another great event.
What do you love most about your
My top tips for networking are
role? The main part of my role is enabling people to keep more of their own
Read Full Article
money and assets. The role has a very
13
MEET OUR MEMBERS
Meet Our Members: Matthew Gilligan What do you love most about your role? The balance of being able to manage our business development and still have a lot of client work. I love the challenge of bringing new business into the group but I am grateful that I still get to work with the clients I have worked with for over 8 years on a day to day basis. Why did you join PCD? I was suggested to join by a friend of mine as a good way to develop What do you do for the Louvre Group?
contacts within the London private
I am an Associate Director at Louvre
client scene about 3 years ago and
with a key focus on client relations
I have been attending ever since.
and business development. I am in
I have attended events in London,
charge of working with our key clients
Manchester, Dublin, Guernsey & Dubai
to ensure that they are guided through
and each one has given me great new
the offshore world in a coordinated
contacts (and new clients).
manner. I also head up our business development initiatives and work with
At which PCD event will members see
our key network of intermediaries
you next?
(many of whom I have met a PCD
I will be at the London event (26th
events) to establish new contacts and
March), looking forward to it!
ways we can work together.
Read Full Article
14
MEET OUR MEMBERS
Meet Our Members: Anne-Marie Ellis experience at top-tier Mayfair and City firms acting for domestic and international HNW clients on a myriad of complex, and often multifaceted, residential and investment property transactions in London and the country, increasingly clients and their family offices turned to me to advise, negotiate and coordinate other elements of their property matters, such as assembling professional and creative teams for their renovation projects or managing their transactions. Anne-Marie Ellis is a Solicitor and
I realised that clients were looking for,
Founder of Anne-Marie Ellis Property
and I was providing, a private office for
Matters, an independent advisory
their property requirements and that it
company that helps private clients
would be more beneficial – and cost-
achieve the best possible outcomes in
effective - for them if I answered this
their property transactions and projects
need by bringing my extensive legal
by providing them with bespoke,
and practical expertise and wealth of
holistic legal and practical advice and
contacts together to create a specialist
solutions.
property-focussed company, so I did.
You run your own property advisory
Tell us about what you do
business for HNW clients, what made
We help clients with their
you start Anne-Marie Ellis Property Matters in the first place?
Read Full Article
As a solicitor with over 25 years’
15
P R O M OT I O N R O U L E T T E
Promotion Roulette call. You take ‘busy’-ness to new heights – but how effective have you become? What became of that brilliant client handler, excellent trader or talented lawyer? What impact are you having on the people around you? So often leaders assume the persona they feel is expected of them – not who they truly are. A continuing theme in business is
Maybe it’s time to step back and take
that good technicians get promoted
a hard look at yourself. Understand
on their technical not management
your strengths and values. What are
abilities – losing a good technician and
you good at and what do you enjoy?
gaining a lousy manager! So, in the
Know your weaknesses and be clever
absence of coaching or training - how
at delegating. Learn how to coach
do you, the new leader, cope?
and empower your team and focus on those skills that are unique to you.
Leadership is a lonely place. Once a friend and part of a team you are now
Use your time to best advantage.
in charge.
“Prioritise. A. B. C. – discard C”.
You are beset by a host of new challenges, always in meetings, on
Read Full Article
projects and at everyone’s beck and
16
MEET THE TEAM
Meet the Team: Lucy Ashworth What aspect of your role do you enjoy the most? I enjoy being part of our members’ PCD experience! From the initial interest in our international events to managing bookings and having regular contact with members right up until the events themselves. I love to hear how the events went for our members - it definitely puts a smile on my face! Best vacation you’ve been on? That’s a hard question, I have travelled so much and I know that I have a lot more travelling and exploring to do -
Where are you from?
watch this space!
I was born in Bristol but I grew up overseas. I went to school in Egypt,
If you could do another job for just one
South Africa, Abu Dhabi and Dubai; as
day, what would it be?
well as a number of pit stops here in
I would love to be a widely respected,
the UK.
famous artist/gallery owner.
What’s your role at PCD Club and
Motto or personal mantra?
where are you based?
Every day is an adventure; on to the
I am the Client Administrator and I
next one!
manage bookings for PCD events. I am based in Brighton.
17
M E D I TAT I O N F O R M O D E R N L I V I N G
Meditation for Modern Living My observation having taught hundreds of people how to meditate, is that what people are craving now more than ever, is a greater sense of connection with themselves, in their relationships, their work and within their community. We live in a modern, highly digital world, where we are sometimes more connected to our devices than we are to each other. The days of meditation being perceived
Niamh Keane
as a practice for hippies, monks and those living in Ashrams are gone. Today the modern meditator is the local
Niamh Keane is one of Europe’s leading
taxi driver, the global business leader,
female meditation teachers and a
the stay at home mom, the CEO, the
trained ICF Coach. Here we explore how
school child, the fund manager. It
meditation can help us to find balance
is for everyone and it is my job as a
in the digital age.
teacher to make it accessible but more importantly, to empower students to
Welcome to the 21st century, where we
develop a self-sufficient practice.
are over-producing stress chemicals, under-producing endorphins, alert,
The meditation practice I teach is an
always ‘on’ and easily triggered. Most
ancient, simple, effortless technique
people that come to see me are
which is adapted to suit our
‘stressed’, it’s the new ‘busy’ and it is wreaking havoc with our nervous systems.
Read Full Article
18
MEMBER NEWS
Member News Fearis Named as PraxisIFM CEO The PraxisIFM Group (PraxisIFM) has appointed Robert Fearis as CEO.
Ocorian and Estera Merge to Create a Global Leader Ocorian and Estera have announced that their businesses have been combined to create a global leader in corporate and fiduciary services, fund administration and capital markets. The enlarged business will operate under the Ocorian name with refreshed branding.
Sancus Provides Funding for £8m Prime Chiswick Riverside Scheme Specialist lender, Sancus has delivered a £4.6m refinancing package for the development of seven high end riverside apartments at the popular Corney Reach Way in Chiswick, W4 by award-winning boutique developer, Fruition Properties.
PCD member Neil Russell deals with PM’s divorce PCD member and Partner at London-based firm Seddons, Neil Russell recently appeared in the press as the Prime Minister’s family law solicitor, having dealt with his divorce.
19
THOUGHT LEADERSHIP
Thought Leadership A Time for Change By Justine Howard, Senior Tax Manager, KPMG LLC
Read Article
Increasing Trends to Change the Proper Law of Trust to Singapore By Marcus Hinkley, Private Client Director at Hawksford
Read Article
20
THOUGHT LEADERSHIP
Prime or corporate member? Contact lucy@pcd.club to share your news or advertise.
A Return to Balance By Keith Wilen at Locate Guernsey
Read Article
The Death of Entrepreneurs Relief? By Andy Wood at ETC Tax
Read Article
21
A better life for you
CHINA NOW: EPISODE 1
DURING THE COURSE OF 2019, PCD CLUB PRODUCED A NEW 3 PART DOCUMENTARY AIMED TO PROVIDE INSIGHT ON CHINA FROM LEADING PROFESSIONAL ADVISORS IN THE PRIVATE WEALTH SECTOR. IN THE FIRST EPISODE, WE EXPLORE THE EMERGENCE OF PRIVATE WEALTH IN CHINA WITH CONTRIBUTIONS FROM:
Bob Olivar, O&G Capital Management in Shanghai Charles Wang, Partner & Head of China Desk at Rosenblatt LLP in London Tim Maxwell, Partner at Charles Russell Speechlys LLP in London Michael Powell, Client Director at Hawksford in Jersey Dharshi Wijetunga, Partner at Charles Russell Speechlys AG in Zurich James Price, Partner at Stewarts in London Wisdom Hon, Senior Associate at Ogier in Hong Kong James Heathcote, Associate Director at Lancaster Knox in London Despite the impact of COVID-19 on Chinese society, we believe the fundamentals of the country’s economy remain strong. The observations made by our contributors last year continue to be just as relevant, particularly as the economy reverts to full steam ahead. The challenges of succession, governance and diversification of investments remain prevalent in the many HNW & UHNW families building their wealth in China today.
WATCH EPISODE 1 HERE THE EMERGENCE OF CHINA 23
DATES FOR 2020 19 FEBRUARY
MUMBAI
28 MAY
HONG KONG
22 OCTOBER
19 MARCH
10 JUNE
5 NOVEMBER
MIAMI
MANCHESTER
GENEVA
SHANGHAI
26 MARCH
LONDON
17 JUNE
NAIROBI
12 NOVEMBER
12 MAY
NEW YORK
2 JULY
LONDON
19 NOVEMBER
20 MAY
30 SEPTEMBER
ZURICH
26 NOVEMBER
LONDON
26 MAY
14 OCTOBER
3 DECEMBER
GUERNSEY SINGAPORE
ISLE OF MAN
DUBAI
JERSEY
CAPE TOWN
JOIN THE CLUB AT WWW.PCD.CLUB