Urgent retirement action required before July 2012

Executives and business owners nearing retirement or planning an exit from their business need to urgently rethink their planned date of retirement from employment.

Federal budget changes mean that from 1 July 2012 the tax on retirement payments may increase by up to $52,500.  People affected should consider retirement in June 2012.  In such circumstances, it may still be possible to consult back to the business in a changed role.

Businesses where family succession plans are underway should also consider whether there is an opportunity to take advantage of this closing opportunity in June 2012 for the family members that are handing down the business to the next generation.

For more information, please contact your Adviser.  

Stephen Cribb is a Director of Business Services and Tax at Prosperity Advisers Group.  

Primo Smallgoods gets a boost from Affinity

The Prosperity Advisers Transactions team has been hard at work driving one of Australia’s largest capital transactions throughout 2012, and now, we are pleased to celebrate Primo Smallgood’s success.

Prosperity have acted as Central Advisers to the owners of Primo Smallgoods as they have sought capital and sold a significant stake in their business to Affinity Equity Partners at the tail end of 2011.  With Primos’s enterprise value reported to be in the order of $1 billion, the transaction was a remarkable coup for the owners in a difficult capital markets environment and one Prosperity Advisers is proud to have been involved in.

Primo is one of the great stories of an Australian family creating an enduring and iconic brand across three generations.  They are Australia’s leading manufacturer of small goods with their products finding a place in most Australian fridges.

“The group has an impeccable record of growth, and this new capital allows the business to enter a significant phase of opportunity with the construction of a major new factory,” said Stephen Cribb, Director and head of the Transaction team.

“In the case of Primo Smallgoods, a four track process was conducted because of the volatility of capital markets.  Our process involved simultaneous work on a potential IPO, trade sale, external private equity and “in-house” private equity arrangements through syndicated borrowing,” Stephen said .

Prosperity Advisers have been there through every step, working closely with shareholders, management and panel advisers to help balance the competing objectives of raising fresh capital for new investment and reducing shareholder portfolio risk.