Family succession planning at Flair Rugs

Total consideration payable: undisclosed
Turnover: £20m
Project duration: 6 months

Flair Rugs

The challenge

Flair Rugs was created by Dinesh and Rekha Shah in 1982 and has grown to be one of the largest privately owned suppliers of rugs to the UK retail channel. In 2006, the founders' son, Neel, joined the business to become MD - since which time the business has maintained its successful development and growth, and is looking forward to an exciting future. In anticipation of Dinesh’s retirement and estate planning, it was agreed that the ownership of the business needed to pass to the next generation. The challenge was now to structure and finance the transaction in such a way that was fair to both generations and to the business.

“Marcus has a unique skill in identifying the key value drivers in any business and how to maximise them in an engaging way—and his extensive experience helped us gain a clear insight into our own key opportunities. We were able to successfully negotiate a number of sensitive issues to structure a family ownership transition that satisfied everyone’s aspirations.”

Neel Shah – Managing Director, Flair Rugs
Flair Rugs

The solution

After reviewing the business and the roles of family members in the past, present and future, Marcus designed a transaction structure to allow current equity value to be understood and crystalised—with future equity value reflecting the efforts of the next generation of family management. The transaction was implemented in the most tax-effective manner, working closely with the company’s accountants and taking into consideration many factors, including inheritance and estate planning.

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Flair Rugs

The outcome

With the new structure in place, the founders were able to plan effectively for the future with their underlying value now secure. Under Neel’s leadership, the business is able to invest further in the future and to plan and implement a number of longer-term initiatives, confident in the rewards to come.

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Contact us

Marcus Moir: +44 (0) 7711 078458

Helen Halsall: +44 (0)7795 566260