This is a common issue in businesses and these two methods are effective:

Clog shares

These shares will carry restrictions such as they can’t be sold for 5 years.  The benefit is that they can be substantially discounted when calculating their value.

Growth shares

These are a separate class of shares and the shareholders participate in the value of the company over a set hurdle.

What questions do you have?

We are happy to help. Please post your comment below or call Paul Leonard, Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: pleonard@cooneycarey.ie

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