Supporting a management buyout at Scruffs Hairdressing

Affinia advised Scruffs Hairdressing, one of Cambridge’s most established and recognised independent hairdressing salons, on a family‑led management buyout.

Founded in 1968, Scruffs operates from a Grade II listed townhouse in central Cambridge and is known for its luxurious, creative environment and high‑quality hairdressing services. The business employs a team of around 40 staff and is led by brothers Garry and Grant Chapman, continuing a long-standing family tradition within the salon. 

The transaction was designed to enable a reorganisation of the family’s shareholdings, allowing one family member to realise value from their equity while the business continued to operate seamlessly under the existing management team. A key objective was to protect the Scruffs brand and ensure continuity for staff and clients, while creating a robust platform for the next phase of the salon’s growth. 

“This transaction demonstrates how effective structuring and early tax planning can provide flexibility, particularly in family‑owned businesses. By creating a structure that allowed the management buyout to be completed ahead of changes to capital gains tax rates, we were able to protect value and deliver a smooth outcome for the shareholders.”

Stuart Sheldrick – Director and Head of Corporate Finance

How we supported

Affinia provided end‑to‑end Corporate Finance support throughout the management buyout process, working closely with the shareholders and advisers to ensure a successful and timely completion.

Our involvement included: 

Advising on the most appropriate transaction structure to enable a family shareholder to sell their equity .

Providing guidance on funding options to support the management buyout .

Structuring the transaction to allow flexibility and completion ahead of changes to capital gains tax rates.

Preparing and submitting the HMRC tax clearance application for a share‑for‑share exchange

Working closely with the legal team to assist with the preparation of transaction documentation and completion

The Outcome 

The management buyout was completed successfully, enabling Scruffs Hairdressing to remain under family ownership while allowing a family shareholder to exit their shareholding. The carefully structured approach ensured tax certainty, preserved value and avoided disruption to day‑to‑day operations, allowing the business to continue serving its loyal client base and supporting its team in the heart of Cambridge.