Group restructuring & demergers

Corporate reorganisations or restructurings include a host of different transactions but essentially cover situations where there is a material change to company’s ownership or share capital. At its simplest, this can be a subdivision or reclassification of a company’s shares, while at the other end of the scale there are large schemes of reconstruction, such as group demergers.

Demergers (a complex form of reorganisation) are the segregation of companies from a group, or activities from a company, and are undertaken for a number of reasons:

  • Where the activities of entities within a group or company may be incompatible
  • to resolve conflict at board or shareholder level
  • to ring-fence liabilities or high risk activities
  • to incentivise management at a subsidiary level
  • in anticipation of a disposal of a business

In any reorganisation we will provide precise advice tailored to your company’s requirements. We will identify and assess any potential issues, provide a step plan to access tax reliefs, apply to HMRC for the relevant statutory clearances, and implement the plan in close liaison with your company’s solicitors. Recent successful transactions involving reorganisations have included:

  • Management buyouts
  • Capital extraction through hybrid arrangements on departure of founder shareholders
  • Insertion of group holding companies in anticipation of corporate acquisitions
  • Restructuring ahead of employee share incentivisation
  • Share capital reductions and reclassifications
  • Corporate demergers, both statutory and using capital reduction principles

Meet the Experts

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Want to know more?

Then get in touch with Mike Chapman - Tax Partner

01273 484913 | mike@knilljames.co.uk

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Want to know more?

Then get in touch with Michael Williams

01273 484934 | michaelw@knilljames.co.uk

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