There can be many reasons as to why corporate companies choose company restructuring. From the plan to sell the business, move, integrate, merge arrange for a management buy-out or diverge into new markets. This could also mean that the part of Commercial work has to be shifted to a separate limited company or may require share for share exchange.
Whatever the reason for company restructuring, the process will be complex and time-consuming.
Here are our best tips to help you get it right.
1. Create a business plan- This will ensure the business plan and restructuring plans are being done in accordance with the vision of the future of your business.
2. Plan- It is always best to have a plan because even a simple restructuring takes time to plan, check, and implement the change.
3. Acquire tax and financial advice- Restructuring is not only driven by commercial reasons but other aspects, such as tax reasons. It is important that you consult with your tax advisor and acquire advice for the proper structure.
4. Obtain legal advice- This is very important, especially if the Company is prepared for sale. As part of any sale, the buyer’s lawyers will meticulously look at the paperwork as part of their due diligence process. Any anomalies found in the documentation can delay, frustrate or end the sale process causing you additional expense and waste.
5. Consider shareholder protections- Regardless of why the restructuring is carried out, you should ensure that the shareholders’ agreement is reviewed regularly and updated where relevant.
For any legal advice and assistance in relation to restructuring, our commercial solicitors here at Alfred James & Co Solicitors LLP are available to work hard and provide you with the assistance you may require.