Number 18

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