In Minister Lenihan’s budget address he identified the Business Expansion Scheme as a key labour activation measure. The Scheme was already strengthened in the 2007 Finance Act and will be further transformed into a new Employment and Investment Incentive in 2011. This is good news for taxpayers looking to avail of the few remaining tax breaks, companies looking for investment and established BES Fund managers Pinnacle Capital Partners.
Limerick accountants and business advisors Horwath Bastow Charleton manage the Pinnacle BES Fund (through Pinnacle Capital Partners). The Pinnacle Fund is one of Ireland’s largest BES funds, managed by one of Ireland’s most experienced BES and tax-based fundraising teams. Since 2007 the Limerick firm has raised €14.3 million for investment in Irish companies supporting over 200 Irish jobs. In 2009 Pinnacle raised €4 million for investment in seven companies based in Cork, Limerick, Galway, Clare and Wicklow, providing a vital financial lifeline to these solid Irish companies.
Brian McEnery one of Ireland’s leading corporate rescue advisors spoke about the importance of the Business Expansion Scheme (“BES”) after the Minister’s announcement.
“The future for Irish economic growth is at a crossroads with the Irish State accepting help from the IMF/EU and signing up to a four year austerity plan. While we remain highly dependent on multinational investment and our government vows to protect the corporation tax rate against all comers we need to focus on indigenous enterprise as the key to securing our future. It is imperative that we actively encourage Irish company growth, entrepreneurship and innovation.
“Unfortunately, the ongoing credit crisis has meant that there is still a shortage of traditional funding for small and medium-sized enterprises. As most of our clients are in the SME sector we are painfully aware of the need to be proactive in getting money back into Irish companies – and that is where the BES comes in. BES enables qualifying Irish companies access up to €2 million in investment. This will be further strengthened next year when the limit that can be raised by companies will be increased to €10 million, and the amount that can be raised in any twelve-month period will be increased to €2.5 million. Currently, our Pinnacle Fund is in the process of investigating a number of Irish businesses for investment in 2011. These include companies which are involved in manufacturing, renewable energy and technology, based in Meath, Clare, Limerick, Donegal and Cork. There is a focus on pharmaceuticals and food as we place a key emphasis on exporting.
“BES is also good news for the tax payer. An individual investor putting money into BES, not only obtains tax relief but also added value from the BES fund by witnessing qualified Irish companies prosper. In addition, investing in these indigenous companies has allowed the creation of much-needed jobs.
“The importance of the role of SMEs in Ireland’s economy has been recognised by the government. SMEs supply goods and services on which larger companies rely and it is estimated that small firms employ 700,000 individuals. BES investment is now regarded as a vital funding source for growing enterprises and many indigenous companies are now looking towards BES to expand their workforce and grow their company.
The Pinnacle BES Fund is managed by the partners at Horwath Bastow Charleton Limerick (HBC). HBC is one of Ireland’s largest and most successful corporate finance and tax consulting firms; for over 15 years its partners have dealt with over 100 tax-based investment schemes worth over €150 million.
Pictured at Horwath Bastow Charleton’s recent launch of the Pinnacle BES Fund are (L-R) Mary McKeogh, Tax Partner, Maebh Gavin, Corporate Finance Manager, Brian McEnery, Corporate Finance & Rescue Partner, Con Quigley, Corporate Finance & Managing Partner, Ger Blake Corporate Finance Partner.”
