From enterprise to enduring wealth: Rethinking structuring at the point of business exit 

For many entrepreneurs and business owners, the sale of a company represents far more than just a liquidity event. It’s a pivotal moment that signals the transition from active enterprise building to legacy-focused wealth management, and it raises complex questions about control, succession, and long-term capital preservation.  

While advisors often focus on optimising the deal itself, equally important is the forward-thinking structuring that must follow. And this is where Family Investment Companies (FICs) are increasingly coming to the fore.  

Navigating the post-exit landscape  

The challenge post-sale isn’t just how to manage capital, but how to reframe a founder’s role from operator to steward. They may no longer be managing staff or scaling a product, but the need for oversight doesn’t disappear. Instead, it shifts towards managing risk, supporting family members, and stewarding wealth over the long term.  

FICs offer a flexible and commercially familiar way of bridging this transition.  

Typically structured as private companies with family shareholders, they allow wealth to be ringfenced and professionally managed, while enabling a gradual, controlled transfer of economic interest to the next generation. For many founders, the governance framework of a company feels more intuitive than the fiduciary distance of a trust.  

The mechanics: More than just tax  

While tax efficiency is a common motivation, particularly around Inheritance Tax (IHT) and income/capital gains, the real power of a FIC lies in its flexibility.  

Liquidity management: Business sale proceeds can be introduced as loan capital, allowing founders to retain access while transferring growth out of their estate.  

Succession control: Preference shares and board rights can be used to retain oversight while gifting ordinary shares to children or other beneficiaries.  

Asset protection: Structured correctly, FICs can offer a degree of insulation against divorce or creditor claims within the family.  

Reinvestment strategy: With corporate tax often lower than personal tax rates, investment gains can be reinvested more efficiently inside the FIC.  

Crucially, the FIC structure allows for commercial-style governance. Decisions can be made by a board that includes family members or external advisors, preserving a sense of enterprise while supporting generational transition.  

Rethinking location: Beyond UK borders  

Historically, FICs have been UK-centric, but recent political shifts and evolving disclosure regimes have prompted many to reconsider the jurisdiction of incorporation, particularly where privacy, redomiciliation flexibility, and lighter filing requirements are valued.  

Jurisdictions like the Isle of Man, Jersey, and Guernsey are increasingly being used to establish FICs that still maintain UK tax residence, offering strong confidentiality and administrative frameworks. Importantly, these structures are designed to evolve, providing optionality should a founder or family become internationally mobile in the future. 

The role of the advisor: Integrated thinking required  

Liquidity events naturally trigger deeper engagement between founders and their advisory teams. But as clients move from active ownership into legacy planning, they need joined up thinking across personal wealth, corporate structures, and family dynamics.  

FICs are rarely a plug-and-play solution, they require careful coordination between legal, tax, corporate administration, and family governance considerations. And while some see them as an alternative to trusts, the best outcomes often result from thoughtful integration of both.  

The role of the advisor, then, is not just to implement structures but to help founders reimagine the next chapter of their wealth journey.  

How we can help   

At Equiom, we work closely with business owners, wealth managers, and advisors to navigate this pivotal shift, combining decades of experience in corporate services with deep expertise in private wealth structuring.   

From incorporating Family Investment Companies across key jurisdictions, to supporting governance and succession frameworks, we’re here to ensure that wealth not only endures, but works for generations to come.  

If you're advising a client approaching a business exit, or you're preparing for one yourself, contact Carolyn Gelling to explore how a FIC might support your long-term goals.  

This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained within this article without obtaining specific professional advice. Please contact Equiom Group to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.