Restructurings and reorganisations need not be caused by distress situations.
At times there may be a proactive need to restructure a business to improve profitability, to re-position operations in response to changing economic or sector-specific trends, to protect accumulated reserves or assets against unforeseen events, to improve accountability and performance measurement, to change the financing structure, to acquire or de-merge a specific operation, to accommodate new outside owners, or to prepare for the ‘next generation’ to take over.
Whether proactive or reactionary, restructuring of any kind is not to be undertaken lightly, requiring careful planning and consideration of the impact on the business, its people, customers and suppliers.
There will often be many wider ramifications of the process, including but not limited to employment law, company law, industry specific regulations and tax.
Meridian can help formulate a restructuring plan and advise on the various tax issues around restructuring of assets or business ownership.
For example, restructurings in a corporate environment may involve a full or partial change in ownership, in which case advance tax ‘clearances’ would be recommended. Meridian will assist in obtaining these once a final proposed structure has been decided.
In addition, change in ownership can have income tax, capital gains tax or inheritance tax implications which will need to be factored into decision-making.
In distress, insolvency or turnaround situations, Meridian (which is not licensed for insolvency work) will, if needed, work with you and suitable specialists to achieve a successful outcome to the process.