Corporate Restructuring & Demergers

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Corporate Restructuring & Demergers

When a business is struggling financially, internal re-organisation and/or corporate restructuring can allow you to modify your company’s capital structure and/or operations to make the business more efficient and commercially viable.

At IBB Law, our Corporate & Commercial team is well-equipped to assist with all types of corporate restructuring options, including:

  • Reduction or division of share capital of a company
  • Re-arrangement of businesses within a group of companies
  • Demerging a business
  • Selling part of a business or non-core assets
  • Staff restructuring
  • Financial restructuring

We have handled restructures and demergers for clients ranging from start-up companies to large, established businesses including UK and overseas private and public companies. As such, we can provide seasoned support irrespective of the value and complexities involved.

Our team can advise on all aspects of corporate restructuring, including:

  • Different corporate structures and their advantages
  • Potential pitfalls of restructuring and how to mitigate these
  • Preparing the necessary legal documentation
  • Updating records with Companies House, finance providers & other relevant parties
  • Ensuring compliance with all relevant laws and regulations
  • Raising additional finance
  • Redundancy and transfer of employees (TUPE)

We will work closely with you to understand your liabilities and priorities, then develop a legal strategy to stabilise all or part of your business while managing your risk. At all times, we will keep you and your company protected legally and financially.

Making the decision to restructure or demerge a company is typically very stressful, with a range of economic, financial, organisational and personal factors to consider. Using our many years of experience, our Corporate & Commercial team can guide you through this difficult time, helping you to achieve the best possible outcome for your business, its directors and employees, and your creditors.

For expert assistance with corporate restructuring and demergers, please call Adam Dowdney on 01895 207264 or email adam.dowdney@ibblaw.co.uk for immediate assistance.

Our expertise with corporate restructuring & demergers

At IBB Law, our Corporate & Commercial team is highly experienced in guiding businesses through restructurings and demergers. We understand that each situation is unique, so will take the time to understand your requirements and provide clear and pragmatic advice to help you achieve the outcome your business needs.

We can explain your options in plain English, identifying outcomes and processes that you may not have considered. Our team will make sure you meet your director statutory duties, keeping you legally protected.

IBB Law is ranked Tier 1 for Corporate & Commercial by the Legal 500 with IBB Corporate & Commercial Partner Adam Dowdney having been inducted into the Legal 500 Hall of Fame.

We are ranked Band 1 by Legal 500  for our Corporate work, which includes our expertise in restructuring and finance. IBB Law Partner Sarah Jackson has been individually recognised by Chambers & Partners for her “no-nonsense, pragmatic advice, balancing the costs and the benefits.”

With strong expertise across the firm, we can call on other departments for tailored advice in connection with issues such as commercial property, corporate finance, and employment and redundancy.

How our team can help with corporate restructuring & demergers

There are various options for restructuring a business and it is important to choose the right solution for your circumstances. Our Corporate & Commercial team can advise on all of the available options and guide you through all of the legal issues you need to consider when restructuring, including:

  • Assets & liabilities
  • Shareholders options
  • Reduction of share capital
  • Continuity of business contracts & agreements
  • Rebranding
  • Intellectual property

Find out more about how we can help with business structures.

A demerger is the process of dividing a business into two or more separate entities with their own management, shareholders and structures. There are various situations where splitting up a business may be a sensible option, including where:

  • You wish to refocus a business that has become too diverse
  • You feel certain areas of the business would function more effectively under different management
  • You believe dividing the business would provide better shareholder value
  • You wish to sell part of the business or dispose of non-core assets

Our Corporate & Commercial team have guided a wide range of businesses through demergers, including advising on whether a demerger is the right option and handling all of the legal processes involved in carrying out a demerger.

Where you need to sell part of your business, we can guide you through the entire process for doing so, including:

  • Considering whether a share sale or asset sale is the most appropriate structure
  • Drafting and reviewing any necessary documentation for the sale
  • Ensuring you pay the correct level of Capital Gains Tax with the relevant tax rules
  • Advising you on whether you qualify for entrepreneurs’ relief

Find out more about how we can assist with selling a business.

As part of a restructure or demerger, it is likely your business will need to raise additional finance, refinance or change the way your financing is structured. Our Corporate & Commercial team has strong expertise in financial restructuring and corporate refinancing, so can assist you with securing the finance you need on the right terms.

We can talk you through all of your refinancing options, highlighting the benefits and any drawbacks of each potential arrangement. You will then be able to make an informed and confident decision about choosing the right funding for your requirements.

Find out more about how we can help with corporate finance.

When restructuring or demerging a business, it is likely that some employees will need to be made redundant or have their employment transferred to a different business. Employers have to be very careful when carrying out redundancies and transfers of employment, making sure employees are treated fairly and that the business meets its statutory obligations.

Our Employment Law team can guide your business through making redundancies, including the use of settlement agreements where appropriate. We can also assist with transferring employees to a different business with respect to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).

Find out more about how we can help with redundancy advice for employers and TUPE.


Speak to our corporate restructuring & demergers solicitors

For clear, effective advice on restructuring a business or carrying out a demerger, our expert team are here to help.

Please call Adam Dowdney on 01895 207264 or email adam.dowdney@ibblaw.co.uk for immediate assistance.