The Atticus Papers

Bringing clarity to finance

Friday 6th August, 2021

A guide to successfully exiting your business - Things to consider when selling your company

What do you need to consider when selling your business? I am frequently asked this question by clients who have been incredibly successful in building their business, but have given little thought to how they will eventually exit the business or what a successful exit will even look like. The reality is that selling a business can be as fraught with pitfalls as the actual process of starting the business up and making it profitable. I have therefore put together this guide which takes an in-depth look at: • When you should start planning your business exit • Your objectives when selling your business • Your options when selling your business • How to make your business more attractive to buyers • How to value your business • Which advisers and professionals you should talk to and how they can help • How a financial adviser can help with your pre and post exit planning I hope you find this guide useful, but if you have any questions, please don't hesitate to get in touch with us. We are always happy to help and have a broad range of contacts with other experienced professionals we can put you in touch with, who can make a huge difference to the eventual outcome of the process.

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Tuesday 3rd August, 2021

What is a pension? - A guide to the pension and retirement options in the UK

I was recently confronted with this question by one of my clients, who explained that in my articles I frequently assume a level of knowledge amongst my readers that simply isn’t there. I was shocked to hear this and quite frustrated with myself. Here I am, happily making articles and videos about the more complex areas of pensions, investments and Inheritance Tax planning, when it had never occurred to me to put together an article explaining the basics of what pensions actually are, what they do and the options they offer. We do have a free pension guide available under the resources section of our website, but this is largely a users guide to defined contribution pensions, with little focus on the other pension options available, like the State Pension and Defined Benefit Pensions. In order to address this oversight, I have put together this article where I will look at the most commonly asked questions I come across relating to pensions. In the article I will look at the following areas: • What is a pension? • The State Pension • Defined Benefit (Final Salary) Pensions • Defined Contribution (Money Purchase) Pensions When looking at the pensions, I will consider: • What they are • Eligibility • How they work • Your retirement options • What happens to the pension when you die?

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Friday 30th July, 2021

Should I be investing in cryptocurrencies? - An investor's guide to the Bitcoin conundrum

"Should I be investing in cryptocurrencies?" This seems to be the question on everybody's lips at the moment, from experienced, long term investors to those who have never considered investing before, but don't want to miss an opportunity to turn a quick buck. I have been asked this question by numerous clients and friends and also been in a number of fairly heated debates on this topic, with one individual accusing me of selling my clients short by not actively encouraging them to purchase a portfolio of cryptocurrencies. Like everybody else out there, I have questioned whether I am missing a trick here. It is hard not to be tempted by the lure of massive returns on your money over an incredibly short time. I have therefore looked at it as forensically as I can to determine whether there is any merit to holding cryptocurrencies for the investors I work with. Now, it is important to point out that I work with medium to long term investors. If you are looking for an investment that will triple in value over a year, I am probably not your man. In order to answer many of the questions I am asked, I have put together a fairly in-depth article to look at all aspects of cryptocurrency. I will look at the historical aspects of asset bubbles and also look at whether a cryptocurrency is an investment or a currency, or neither. I will look at the hurdles (government regulation, corruption, market manipulation) facing cryptocurrencies and whether these are insurmountable or not. I will end with a summary of my views and whether long term investors should be holding cryptocurrency or not. I hope you find this article useful, but if you have any questions, please feel free to give us a call. We are always happy to help.

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Monday 26th July, 2021

How to invest in smaller companies and start-ups - A guide to Enterprise Investment Schemes, Venture Capital Trusts and AIM portfolios

"How can I invest in smaller, newer, growth companies and Start-ups?" It is probably the dream of every investor to go out and find a brand new start-up that very few other people have access to, buy up some equity in the business and then watch as it goes stratospheric. It's like Captain Ahab's quest for the great white whale, hopefully just a little less self-destructive and fruitless. Despite the fact that this is often perceived as the preserve of the institutional investor (your Gordon Gekkos of the world), many retail investors have not given up hope of finding a start-up to invest in with the possibility of finding the elusive 10 bagger (10 x original investment) investment or higher. After all, it doesn't take much. I had a friend who invested £15,000 in ASOS, when it first floated on AIM, and watched (firstly with shock and then undisguised glee) as it grew to £250,000. In the article below, I will look at a number of different investment vehicles which retail investors (that's non-professional investors) can use to gain access to investment opportunities in start-ups and smaller, riskier, growth focussed companies. We will look at Alternative Investment Market (AIM) portfolios, Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT). We will look at what they are, how they work, and the advantages and disadvantages of utilising them as an investment option. It is important to note that, although these investments carry large growth potential and tax benefits, they are incredibly risky. It is therefore crucial to take advice before investing in any of these investment vehicles and it is important that you are careful about how much of your portfolio you choose to invest in them.

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Tuesday 13th July, 2021

Discounted Gift Trusts – how to gift away assets and retain an “income” from them

Many people are aware that they have an Inheritance Tax liability, but feel that they cannot afford to do anything about it, as they rely on their excess assets to provide an income to meet their expenditure requirements. They are asset rich and income poor. Unfortunately, there does not seem to be a way to gift away the assets, while retaining access to the income generated, without falling foul of the Gift with Reservation rules. However, the Discounted Gift Trust offers an option to give away the asset, while carving out a right to "income" from the assets for life. In the article below I will explain what Discounted Gift Trusts are, how they work, their advantages and disadvantages and who they might be suitable for.

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If you would like further information, please don’t hesitate to ask us for one of our more complete digital guides to finance.