Things to consider when changing your business structure
Undertaking any sort of business reorganisation, whether it's simplification, de-grouping or consolidation, is not a simple process. However, the benefits can be significant to both shareholders and the company. Factors to consider will depend on the specific circumstances of the business, the shareholders, and the reorganisation objectives. These factors include things like:
Commercial and operational benefits: For example streamlining for cost savings and better synergies.
Current and future plans: What are your plans for the business? Consider different business divisions, separating asset classes (e.g. property), future sale or employee incentivisation.
Tax clearances: Prior to any changes in a business structure, we will get advanced clearances from HMRC.
The valuation of assets: It is critical to ensure assets are valued correctly prior to splitting them off from a trading company.
The solvency of the business: There must be no risk of the company being or becoming insolvent.
The types of assets held: This may affect timescales and the impact of moving the assets.
Effects on other parts of the business: Does the new structure affect things like ownership, share options, business value etc.
