Business restructuring

If you need experienced commercial and legal advice on the best way of restructuring or reorganising your business or group structure, our solicitors are highly experienced. We find the right solution at the right budget.

Whilst lawyers may not be the first professionals that spring to mind when thinking about restructuring,  there will be legal issues and considerations, advice and paperwork needed.

As a commercial only law firm which advises many small and medium businesses we are experienced in the difficult decisions often involved with a business restructuring. Our services are expert but our fees are highly competitive compared to larger law firms in London.

We are commonly instructed to advise and deal with :

• Debt restructure including debt for equity swaps.
• Capital reduction.
• Share buybacks
• Debt refinancing
• Restructuring structured and leveraged finance
• Company restructuring strategies (including company reorganisation, dilution of share capital, or de-mergers)

Reasons to restructure

There are numerous possible reasons for taking action to restructure a business.  Common reasons include :-

• insolvency – downturn in business or concerns about business solvency;
• strategic corporate restructuring – deciding to ringfence assets or create a different company structure to mitigate risk such as a group company structure;
• tax considerations – you may be able to operate your business more tax efficiently;
• staff restructuring – employment related restructuring where you may decide to make some staff redundant or move to a more flexible business model;
• selling part of your business – a decision to sell only part of the business’ assets and not the entire business; or
• financial restructuring – taking the opportunity to refinance certain borrowings or seek private equity investment.

Choosing and implementing the best way to restructure

The approach taken will depend upon the key concerns and desired outcome.  Much depends on whether the restructure is based on necessity and financial distress resulting in the need for business turnaround or whether the restructuring is designed to streamline, ring fence against risk or create efficiencies including tax efficiency.

Often before a corporate restructure can happen the company must change its articles of association and get shareholder consents.  We look at what needs doing for you.

We review and/or draft the reorganisation documentation and

• Deal with shareholder consents;
• Flag key risks;
• Warranties and indemnities – we help negotiate protections against liability for losses.
• Advise and deal (in conjunction with specialist tax advisors) ways to make your reorganisations tax efficient - often, tax can be reduced to nil.  HMRC will offer clearance before any transaction is implemented to confirm that tax charges will not arise in respect of the reorganisation.

Recent restructuring instructions and case studies

Find out more about how we’ve helped other businesses like you by reading :-

• Business restructure before sale
• Restructure where an EMI scheme was in place
• Restructuring as part of business succession plan
• Examples of share for share exchange restructures

For experienced, practical legal advice on restructuring your company or business or for assistance with the documents, legal or tax issues arising, please do get in contact.