Why Reorganise Your Business?
There are many reasons why you might undergo a reorganisation of your business or businesses, for example:
- ring fence separate businesses to insulate from unconnected risks
- easier to buy and sell different businesses
- divide business assets so that different shareholders can take ownership and responsibility for different parts of the business
- maximise funding opportunities
- react to mitigate changes in tax legislation
- segregate businesses subject to different regulatory environments
- realise entrepreneurs relief on a business sale
- efficiency grounds.
Business reorganisations can often be fraught with issues, ranging from redundancies and transfers of employees to potential tax charges across different types of taxes. With careful planning many of the associated potential liabilities can be mitigated or avoided altogether, enabling the commercial advantage of the reorganisation to be realised.
One of the main considerations when considering a restructure is whether the reorganisation should be implemented by way of a transfer of shares or a transfer of the business and assets. Each method has its own advantages and disadvantages.
It is vital that advice is taken before a reorganisation so that all the advantages and disadvantages can be explored.
The team at Chamberlain & Co can talk to you about your options and assist in assembling a team of professional advisors to ensure that all aspects of the reorganisation are considered and funded if necessary.
