A business reorganisation often involves moving shares or assets between different companies within a group, or to create more than one group. This could mean creating a new holding company, adding or removing subsidiaries, or restructuring your existing setup. Reorganisations can help streamline operations, improve efficiency, and even reduce tax liabilities, helping your business to function more effectively.
Business reorganisation & restructuring
Whether you need to restructure for tax efficiency, a prospective sale and/or commercial reasons, we can help you find the best approach—saving you time and money in the process.
Why restructure or reorganise your business?
There are several reasons why a business reorganisation might make sense. Here are some of the most common:
1. Preparing for a sale or investment
If you’re thinking about selling, or raising investment for, your business, simplifying your ownership structure beforehand can make the process much smoother. A complicated setup can slow down a sale/investment and put off potential buyers and investors. A reorganisation allows you to consolidate or separate different parts of your business, making it clearer which assets are for sale or suitable for investment and which you intend to keep. A well-structured business is more attractive to both buyers and investors.
2. Pre & post acquisition
If you’re planning to acquire another company, restructuring in advance can make the transition easier. A well-planned reorganisation ensures that the new business integrates seamlessly into your existing structure. Once you’ve acquired a new company or assets, a reorganisation may be necessary to place them in the most suitable part of your group. This ensures operational efficiency and strategic alignment across your business.
3. Securing tax advantages
Tax rules are constantly evolving, and a reorganisation can sometimes help your business take advantage of tax efficiencies. Regularly reviewing your structure can uncover opportunities for tax savings, making it essential to stay ahead of changes in legislation.
Key considerations when restructuring
1. Tax implications
Without careful planning, a reorganisation could lead to unexpected tax liabilities, such as stamp duty, VAT, or corporation tax. Seeking expert advice ensures that your restructuring is done in the most tax-efficient way. In many cases, advance clearance from HMRC is required to secure favourable tax treatment, making professional guidance essential.
2. Proper documentation
Every aspect of the reorganisation must be properly documented. This is crucial for transparency, especially if a future buyer or investor wants to review past transactions before making an acquisition or investment. Detailed records are also important if HMRC requests a review, ensuring compliance with tax and regulatory requirements.
3. Approvals & consents
Certain third-party approvals or consents may be needed before a reorganisation can take place. Failing to obtain these could cause legal or operational issues. These consents might include shareholder approval, approval under lending agreements or supplier contracts, or clearance from HMRC. Identifying and securing these consents early on will help keep the process smooth and efficient.
Why choose 3volution?
At 3volution, we know that every business reorganisation is unique—just like the people behind it. That is why we take a hands-on, personalised approach, guiding you through each step with clear and commercially focused advice. We take the time to understand your business, your challenges, and your goals, so we can provide solutions that truly work for you, whilst avoiding common pitfalls. Whether you’re preparing for a sale or investment, integrating a new acquisition, or optimising your structure for tax efficiency, we focus on what matters most to you, ensuring minimal disruption and maximum benefit.
Let’s talk about how we can help you get the most out of your business reorganisation.
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