A timber merchant who has built for over thirty years behaves like a seasoned oak beam. Strength comes from long fibres running in one direction. The father who built this £20m enterprise understands that point instinctively. He began with a modest wood yard supplying local tradesmen. Now he oversees five commercial yards worth £5 million and a trading company that produces £2 million of EBITDA.
The difficulty is not the business. It is the next generation’s competing visions. His two sons and daughter each believe they can see the future, though their views point in different directions. One wants engineered wood machinery. Another wants prefabrication. The third pushes for online sales with rapid local deliveries. Each route demands around £0.5m. All three have merit. None fit neatly into the current structure.
The father prefers harmony over friction. He also wants a change in his own life's rhythm. After thirty years of early starts and late finishes, a £0.5m villa in southern Spain feels deserved.
Three Heirs Needing Funding And A Structure That Must Not Be Split
The children speak from good faith.
One imagines higher margins from engineered products.
Another imagines a new construction model using factory-built panels.
The third imagines a digital ordering platform with streamlined logistics.
The business can afford growth, but not at the cost of clarity. A single company cannot be pulled in three directions without twisting its foundations. A stronger framework is required so each child can test their ideas without harming the whole.
A Mural Crown EEV To Stabilise The Structure
The first step is the formation of a Mural Crown Equity Exchange Vehicle. The EEV takes ownership of the £20m timber merchant and creates a foundation capable of supporting multiple outcomes. It separates the £5m portfolio of commercial yards into five individual SPVs. The £15m trading business sits cleanly on the other side of the structure with £2m of EBITDA.
By dividing trading risk from property risk, the group becomes more resilient. Banks prefer clear boundaries. Suppliers prefer clarity. Insurers prefer fewer unknowns. The father gains protection rather than complexity.
The Shift Into A Mural Crown SAFO
The Mural Crown Self-Administered Family Office then becomes the strategic centre. It receives four classes of shares from the EEV.
A Class controls the votes.
B Class carries £20m of Preference value.
C Class captures future growth.
D and E Classes remain available for future issuance when needed.
With the SAFO formed, the £20m Preference Shares represent the locked-in value of the group. The father no longer needs to micromanage. He keeps influence without carrying the daily operational burden.
Exchanging Value And Creating Long-Term Control
The SAFO swaps £5m of Preference Shares for the five yard SPVs. The exchange does not disturb cash flow. Instead, it reorganises ownership. After the swap, the EEV retains only the trading business, valued at £15m, and the SAFO retains the property, valued at £5m.
The SAFO becomes the landlord. It charges £0.5m a year in rent. The EEV now reports £1.5m of EBITDA, rather than £2m, but the difference is accounted for in the SAFO rather than in tax-exposed distributions.
How The SAFO Funds The Father And The Children
The £0.5m rent flows into the SAFO like a steady stream from a dependable borehole. Alongside it sits more than £1m of dividends from the EEV. Together they create a reliable £1.5m annual inflow.
This income makes the father’s next chapter possible. The SAFO can allocate £0.5m for the villa in Spain without harming the trading company. It utilises protected rent and dividends rather than relying on unpredictable profits.
The remaining funds support the three £0.5m growth projects. The timber merchant continues operating smoothly under the management team. The father does not need to choose between business continuity and his own well-being. The structure supports both.
Each project Operates Outside The Core Group For Strategic Reasons
The growth ventures sit outside the trading company and outside the EEV’s immediate structure. This decision shields the timber merchant from risk.
If engineered wood requires advanced machinery, external investors can fund it directly.
If prefabrication demands a new workshop, lenders can support the project without leaning on the timber merchant.
If online sales require technology partners, those agreements can be signed without disturbing the leading group’s balance sheet.
Each venture behaves like a self-contained module. It borrows reputation from the timber merchant but does not disturb the operational rhythm of the £15m trading business.
Pathways To External Capital And Controlled Exits
If one project becomes successful, part of the venture or the entire EEV can be sold to management or outside investors. The capital comes in without disrupting the father’s £1.5m income.
If a project fails, the impact is contained. The children can return to the timber merchant until their next idea forms. The core business stays untouched. Nothing collapses because the anchor asset remains whole.
The Timber Merchant Remains The Steady Wealth Engine
The trading business continues as the reliable centrepiece. It grows carefully, maintains customer loyalty and protects margins. The management team can be granted Growth Shares tied to their performance. This keeps them aligned with long-term targets. They benefit when EBITDA rises, yet the family’s voting control and Preference value remain stable inside the SAFO.
This system keeps the business in a safe range. The father enjoys the sun. The children experiment. The management team sees a genuine reason to remain committed.
A Structure Built For Stability And Freedom
The combination of EEV and SAFO allows the family to grow without jeopardising the asset that took three decades to build. Rent remains predictable. Dividends remain steady. Growth projects can succeed or fail without affecting the timber merchant’s future.
The father planted the first yard like a sapling. Now he hands over an institution supported by reinforced beams of ownership, cash flow and governance. The next generation can build in whichever direction they choose, knowing the core remains solid.
