Welcome
Your Research and Development Advisory Board
As the marketplace of R&D tax relief has matured over the last 20 years or so, it has witnessed enormous expansion. There are countless providers offering their services to businesses small, medium and large. On the back of a massive rise in both businesses claiming and providers supporting claims, HMRC continues its campaign to eliminate error and fraud by increasing its scrutiny of claims. In essence, it is waging war on businesses with doubtful eligibility and providers endorsing these claims.
Like any war there is always collateral damage. Businesses and providers are both feeling the effects and this is spawning further change. Some providers now seek to exit the marketplace while others take advantage of the upheaval and have adopted a buy and build strategy.
Your Research and Development Advisory Board (YRDAB) helps businesses and providers make sense of this dynamic marketplace:
- For those providers who have a buy and build strategy – we will support you by finding suitable businesses willing to integrate within your business. We can support you with the right commercial arrangement and keep momentum until deal completion. We can also help you with your growth plans and aspirations if you are simply looking for lead generation.
- For other providers and accountants who wish to exit the market and escape the volatility – exiting can be through a sale of equity, assets or even a long-term partnership agreement. We will find suitable buyers or partners for you to enable a deal. This is happening NOW; we have already helped one provider in 2024 do just that.
- For businesses – we provide free, independent advice along with recommendations to help you formulate your strategy for making R&D claims.
Why come to YRDAB
This is the right time to consider your options. The world of R&D started to change on 1st April 2023 when the legislation changed, improving the rate of relief for RDEC claims and significantly reducing the relief for SMEs. This was the first of many changes which dramatically changed the market dynamics.
HMRC have increased their estimate of tax relief which involved error or fraud to over £1.1 billion. The resultant turmoil has been the catalyst for providers, accountants, and businesses to consider their position.
It is a challenge to get independent advice so by coming to YRDAB you get the support and insight of someone who has been steeped in this marketplace seeing it from all angles: provider, business and broker.
About Us
The founder behind the formation of the YRDAB is Dr Brian Williamson. His considerable expertise in working in this sector ideally positions him to identify market weaknesses and ultimately has led him to establish this service.
Brian’s R&D experience started in 2008 when he joined the founders of Jumpstart. As CEO he led the company to become the fastest growing SME in Scotland between 2010 and 2013. He secured external investment from BGF and the sale of the business to ABGi in 2019.
Your strategic options
After 10 years immersed in HMRC’s Research and Development tax relief programme our founder realised the importance of companies establishing the right strategy for their business.
How we can help:
Form a strategy on how to deal with a market which is volatile, uncertain, complex and ambiguous
This describes the current R&D market very well. To thrive, every provider or accountancy practice involved in R&D tax relief should consider carefully their strategy going forward. This can be informal free advice and guidance or a more formal strategy session.
Build strength and efficiency through acquisition
Building a business to get synergy savings through integration can address the issue of declining margins. The barrier are often knowing where to start with an acquisition and its likely cost. YRDAB helps by finding targets who will consider an exit and we work with you to find innovative solutions that suit your aspirations and your budget.
Limit risk and focus on core business through divestment
As accountants or providers, you may appreciate there is an unbearable risk in continuing the current strategy of making claims without the right ‘defence’ resource. Yet a reversal out of the market may seem like failure especially where you have built a substantial client list and achieved a sound reputation. However, it can make perfect sense and YRDAB can help you withdraw gracefully whilst ensuring the right level of financial returns. You can turn any potential reputation damage into a win-win by controlling the narrative.
What should I do if I am the business that is claiming?
Understanding eligibility is a specialist skill and choosing the right provider can be a near impossible decision. By coming to YRDAB you get free advice and guidance and you will know the recommendations you are offered are based upon solid experience and sound judgement.
Contact us
Give us a call on 01786 230084 or drop us a line at tellmemore@yrdab.co.uk with your contact details and we will get back to you for a discussion.
FAQ
Yes, we cannot charge for anything without fully understanding your situation. Often our role is to help you work through your strategy in your head and make sure you are doing the right thing for the right reason. Everything is confidential. Our aim is to understand your aims, objectives and concerns.
We research marketplaces, business brokers, networking within the industry and by directly contacting owners who may be interested in selling.
We consider the age of any shareholders and the stage of the business to assess their likely appetite for a sale. We look at information on the financial health of the business, its growth potential, any services that compliment your own, and the reputation of the business. qualified to assess likely eligibility.
Business valuation can be complex and typically is market driven. However, we look at what the business would be worth for you, including the benefits of integration and any post-acquisition upside. This will help you when making a decision on the value expectation of the seller.
Due diligence starts at a high level in the initial stages. We assess their stability of trade and their client relationships to ensure they are worthy targets. Once they become a ‘live target’ we will act as a conduit and a catalyst for diligence into their work. This is often done in partnership with you. We will liaise with your chosen financial and legal teams during the process.
After the acquisition is complete there are often post-acquisition benefits through integration. This often forms part of your 90-day integration plan, and we are happy to lead this as a project or work with your team advising on an arm’s length basis.
There are various reasons why you might consider selling your business, including retirement, health issues, financial opportunities, or changes in legislation. Timing is crucial if you are to maximise value. Usually, a business is passed on for one of three reasons: you die, it goes bust or you sell it. Being proactive with the sale process puts you in control.
We prepare the Information Memorandum (IM) with you. This presents anonymised information about your company that allows potentially interested partners to declare an interest. While the IM is being created, we identify issues that may detract from the value and highlight these to you for action.
Your business value is determined by the appetite in the marketplace. More than one interested party may result in competitive tension and raise the willingness of potential buyers to improve an offer. However, underlying this is the performance of your business, your reputation and other factors including staff.
Everything sent to a prospective buyer is in the first instance covered by a Non-Disclosure Agreement. However, the IM is also an anonymised document. It will be detailed enough to for potential buyers to make a decision and register interest but not too detailed enough to identify your company.
From first meeting to cash receipt our record stands at 16 weeks followed quickly by a deal in January 2024 which took 18 weeks. Our advice is to be prepared for it to be around 26 weeks. The speed with which we can act depends on a number of factors some of which are in your/our control and others are not in your/our control. Our aim is to minimise time during the transaction by getting everything in order as early as possible.
Yes. It is genuinely free for businesses who are either claiming or not claiming and who wish to get advice on whether they are doing the right thing.