Corporate Reorganisations & Restructuring

Sometimes, a company finds that it has developed to a point that it is unable to operate effectively without making structural changes to maximise its efficiency. It may need to place a holding company on top of it, which allows it to then include other branches which can operate as separate businesses without the risk of a company failure affecting the rest of the group.

Minimising Damage

A company may need to hive off a part of its business because of a split between its shareholders, and it is decided that this is best resolved by splitting up the business and going their separate ways.

Restructures involve addressing a number of factors in advance, such as tax. Disposing of shares makes the holder liable for capital gains tax, but there are a number of reliefs that apply, which allow for a relief from this tax. Stamp duty can also be avoided in certain circumstances.

I recently completed a large reorganisation involving a split between two parts of the business through a capital reduction demerger which separated the business into two separate subsidiaries which then allowed for a sale of one part of the business to some of the existing shareholders who wished to operate separately from the main business.

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