Our Services - Corporate services - Corporate restructuring

Group Re-organisations

As plans for your business change over time, it can be necessary to change your corporate group structure.  There are many different reasons why this can become an imperative but listed below are some common examples where we can help:

• transfer of trade and assets: moving a business from one company to another, often to bring businesses together and simplify a group structure.
• demerger: separating a distinct trade or operation into a separate company,  possibly in anticipation of a disposal.
• capital reduction: using balances in the share capital or share premium accounts to wipe out historical retained losses and return a company to a position from which it can pay dividends to shareholders.
• tidying up intercompany loan balances:  some groups of companies can find that they have large historical amounts owing to and from different companies in the group.  Reconciling and settling or waiving these balances is often a precursor to a group simplification exercise.
• issuing new shares: a company may issue a new class of share with different voting or dividend rights to raise additional capital.
• share buy backs: a company may repurchase shares from a shareholder(s).  This can be an efficient way to return capital to shareholders or a way to buy out a minority shareholder.

Whatever you are considering, please talk to us as early as possible in the process.  We can advise you on both the taxation and accounting implications of a proposed course of action and where appropriate suggest alternative approaches to minimise your tax liability.  We are experienced in group reorganisations and will help you avoid potential pit-falls.

We are used to project managing these reorganisations and work closely with your lawyers and other advisors to ensure that the process runs smoothly.