Flotation meaning

Insurance & Reinsurance weekly highlights—19 June 2025 In this issue: Coronavirus (COVID-19) business interruption insurance Insurance types EU regulation Cases tracker Dates for your diary Daily and weekly news alerts New and updated content Coronavirus (COVID-19) business interruption insurance Cosmetics studios sue Beazley over coronavirus (COVID-19) business losses Close to 70 cosmetics clinics—covering tattoo parlours and a flotation therapy centre—have brought proceedings against two Lloyd’s of London syndicates overseen by Beazley, seeking compensation for losses allegedly suffered after temporary closures during the coronavirus outbreak. See: Cosmetics studios sue Beazley over coronavirus (COVID-19) business losses. Insurance types Aviation A data analytics firm reports the Air India flight AI171 crash could leave the insurance market with a US$200m hit, further reinforcing the hardening trend across commercial aviation. See: Air India crash likely to cost insurers US$200m TATA AIG General Insurance Co Ltd is identified as the lead insurer for hull and...

Geoffrey Richard Haworth and others v The Commissioners for HMRC [2024] UKUT 58 (TCC) The taxpayers were settlors of family trusts that participated in a ‘round‑the‑world’ tax arrangement aimed at avoiding UK CGT on share disposals connected with a stock market flotation. For the plan to succeed, it depended on the trusts’ place of effective management (POEM) being in Mauritius at the disposal date, via the UK–Mauritius double tax treaty residency tie‑breaker. The arrangement closely resembled that in Smallwood, where the Court of Appeal upheld the Special Commissioners’ finding that, at the material time, the trusts’ POEM was the UK rather than Mauritius. Taking account of those Smallwood rulings, the FTT examined POEM by identifying where genuine top‑level (that is, realistic and positive) management of the trusts actually took place. Applying that framework, and on the evidence, the FTT determined that the trusts’ POEM was in the UK during the relevant period. The taxpayers appealed to the UT, contending that the FTT had misunderstood Smallwood and had adopted the...

For both the investing private equity fund and the target’s leadership, the prime lure of a private equity-backed buyout is the chance to crystallise a meaningful gain on exit. There are several potential paths to exit from such an investment, most typically: a trade sale to another company operating within the same sector, a flotation (IPO), or a secondary buyout (SBO). The ultimate route will hinge on considerations such as public market appetite for a listing and whether credible purchasers are available. Management often influence the decision, and may favour renewed private equity support via an SBO when the business model and prevailing market backdrop align. A secondary buyout (SBO) is, in essence, a private equity-backed acquisition of a company that has already undergone a private equity-backed buyout. In an SBO, the existing private equity owner exits its stake, though the current management team can remain in post afterwards. Alternatively, fresh management might be appointed, or a blend of old and new...

Introduction An initial public offering (IPO) is a company’s first sale of shares to the public. For more on what an IPO entails, see: IPO—Main market—overview. A business heading towards an IPO must assess the effect on any employee share arrangements it runs. This analysis should begin at the earliest planning stage, as the IPO structure may need to reflect share plan considerations. An IPO also creates a chance to launch new share schemes—often extending participation to all staff for the first time—and it is usually best for those arrangements to be established before the company’s shares are officially admitted to trading. Organisations may likewise wish to make awards or run an employee offer at the point of listing. Doing so demands advance preparation, with suitable disclosures built into the prospectus. This Practice Note outlines the key points that typically arise on employee incentives in an IPO and the steps that are commonly required. It covers both current and newly introduced schemes, points of timing ahead of admission, and...

The primary appeal of private equity for investors and fellow shareholders (including management) is the prospect of realising a notable capital uplift on exit. While income streams during the holding period—dividends on shares, interest on loan notes and assorted fees—are meaningful to the investor, the true benchmark of success is the capital return. Over the longer term, this is what ultimately defines whether a venture capital or private equity firm has succeeded and its capacity to attract investment into later funds. For further information, see Practice Note: Private equity investment—firms and funds. Managing the exit Exit planning starts almost from day one of the private equity investment journey. The likelihood of achieving a successful realisation forms a central part of the investor’s assessment and decision-making. Without a workable exit, the investment will, in all likelihood, be judged a failure. Correspondingly, the equity documentation for the deal includes provisions that address and govern the exit...