Restructuring and Group Simplifications

Restructuring and Group Simplifications

We can work with you to ensure that a proposed restructuring is implemented in the most efficient manner with issues addressed on a timely basis.

We can work with you to ensure that a proposed restructuring is implemented in the most...

Are you concerned your group structure no longer supports the way your business is managed? Perhaps you want advice on the accounting implications of a restructuring plan? Or do you need to create additional distributable reserves or access existing ones?

We can work with you and your clients, from planning through to implementation, ensuring that a proposed restructuring or group simplification is implemented in the most efficient manner and that all potential pitfalls are identified and addressed early on. By investing time in getting to know your business, we ensure that you will have the answers that reflect your business needs.

Your issues:

  • A number of companies within the group currently create ‘dividend blocks’ which limits the amount of dividends you can pay to shareholders. How can you create additional distributable reserves or access existing reserves?
  • You are happy with the tax implications of a proposed restructuring, but how can you get comfortable with the accounting implications?
  • You are not sure that you are restructuring in the most effective manner – are there alternatives that may reduce P&L volatility?
  • The group has evolved over time, and the legal structure no longer supports the way the business is managed. There are a large number of redundant / dormant companies which require time and effort to maintain, for little benefit. How can you address this situation?

Examples of how we can help:

Our dedicated team will:

  • Review the distributable reserves position of each company within a group and provide advice on how distributable reserves can be maximised.
  • Review a transaction step paper and:
    • highlight the relevant accounting;
    • provide illustrative journal entries;
    • indicate where management would need to make accounting policy choices and judgements.
  • Support the implementation of a group simplification plan, including:
    • presentation of the plan to internal stakeholders;
    • liaising with tax, legal and other advisers;
    • reviewing legal and other documents;
    • providing technical accounting guidance as issues arise throughout the project.
  • Devise an efficient group structure that results in simplified reporting lines and eliminates redundant entities, thereby reducing on-going costs.
  • Provide a solution that reflects 'best practice' principles of restructuring, for example: 
    • ensuring transfers of assets are at the correct value (book versus fair value);
    • avoid the creation of dividend traps;
    • minimising impairment risks;
    • working with our tax colleagues to ensure that transfers are tax-efficient;
    • avoiding unlawful distributions.

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