NEWS: Financial Dynamics outlines deal terms

Financial PR firm Financial Dynamics has revealed details of its new deal with parent company BDDP, the French advertising agency.

Financial PR firm Financial Dynamics has revealed details of its new

deal with parent company BDDP, the French advertising agency.



The deal follows the ending of earn-out agreements between BDDP and the

original shareholders of FD last year - said to have grossed the eight

of them more than pounds 3 million



It includes a guarantee that should BDDP want to sell its 51 per cent

stake in the firm, the same offer in cash must be made for FD’s 49 per

cent - held in an offshore Employee Share Ownership Plan.



The firm has operational independence, now including the power to buy

into or set up (non-competitive) companies, either as individuals or as

FD, without referral to BDDP.



FD’s new management structure includes a ten-strong board for the

financial division chaired by Tony Knox - back at work after a heart

operation - and a five-strong corporate board chaired by David Lloyd.



The original shareholding structure has been replaced by a partnership

remuneration scheme with two elements: the majority of the firm’s pre-

tax profits (70 per cent) will be paid out on the basis of each of the

18 partner’s fixed entitlement to share capital; the other 30 per cent

will be divided according to the performance of individual account

teams. This will be weighted in favour of retained business in what

chief executive Nick Miles said was an attempt to ‘iron out’ the effect

of massive ad hoc projects.



In addition, the partners’ stakes will increase in line with their

contribution to the firm’s profits subject to a maximum of 25 per cent

per annum.



Partners may cash in their share entitlement subject to a 25 per cent

yearly discount for the first four years. To fund this, the ESOP may

borrow money and has access to a cash fund into which 20 per cent of

each partner’s bonus will be paid.



Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in