Restructuring
We help your business to adapt and succeed
The world of business never stays still, meaning companies must be ready to change and adapt if they wish to survive and thrive. Business restructuring can allow companies to evolve and grow for continued success or to avoid failure. However, these are highly complex transactions, so the very best legal advice is needed at every stage.
At Longmores, our Corporate Law team offers heavyweight expertise in business restructuring, working with a diverse array of clients, from local SMEs to large corporations and global businesses. We take a high-level, strategic view, ensuring your business is restructured in the best way for your overall commercial objectives, now and for the future.
How we can assist with business restructuring
Our corporate lawyers can assist with all types of business restructuring options, including:
- Restructuring businesses
- Restructuring business groups
- Demergers
- Reductions of capital
- Share buy backs
Our corporate lawyers also have extensive expertise with all other types of corporate transactions.
Have a question? Please read our business restructuring FAQs or get in touch.
Reasons to choose Longmores for business restructuring
- We are ranked by leading client guide the Legal 500 for our Corporate and Commercial expertise
- We are also ranked for related areas including Commercial Property, Commercial Litigationand Employment Law
- Our approach is commercial, practical and no-nonsense
- We offer creative solutions that work in the real world and add measurable long-term value to your business
- We will help you find the best way to structure your business or business group while making sure you fully understand all of the implications of any changes you want to make
Ultimately, our team are here to help your business change and adapt to the commercial realities of your situation, setting you on a firm foundation for future success.
Speak to our business restructuring lawyers
To discuss how we can help your business with restructuring, please get in touch.
Our business restructuring expertise
Restructuring businesses
Where there is the need to alter the way the share capital or assets of a company are held, it is important to get expert legal advice. Our corporate lawyers can advise you on the various options for restructuring your business, and then guide you through the whole corporate restructuring process effectively and efficiently.
Restructuring business groups
Moving assets around within a business group can have a number of advantages, such as strengthening the group as a whole or allowing it to operate more efficiently. Our business restructuring lawyers have particular experience in restructuring business groups, so we can provide the high-level expertise needed to achieve success.
Demergers
Where there is the need to separate a company into two or more separate businesses, this is referred to as a demerger. There are various types of demergers, including statutory demergers and capital reduction demergers – which will be the right fit for your circumstances will depend on your precise objectives.
Our business restructuring solicitors can advise on the different business demerger options, and then guide you through the entire demerger process, ensuring you can achieve your goals while remaining in full legal compliance.
Reductions of capital
Our business restructuring solicitors can assist with the various options for capital reductions to create or increase a company’s distributable reserves. We have experience achieving capital reductions through the solvency statement route and via the courts, where required.
Share buy backs
Also known as a ‘company own share purchase’, this is where a company buys back some or all of the shares owned by one or more shareholders. Our corporate lawyers can assist with share buy backs, helping to secure shareholder approval and ensuring all legal requirements are met for a valid transaction.
Business restructuring FAQs
When is the right time to consider restructuring a business?
Common reasons for restructuring businesses include where there is a desire to:
- Operate more tax efficiently
- Avoid insolvency
- Mitigate risks
- Sell part of a business
- Restructure employees
- Move to a more flexible business model
- Restructure company debt or equity
Getting the right legal advice can help to ensure restructuring is right for your situation and that you have the best chance of achieving your goals with the way the restructure is carried out.
What are the benefits of restructuring a business?
Restructuring a company refers to making significant changes to the organisation’s structure, operations or ownership. This is generally done with the aim of improving its financial performance, competitiveness and overall efficiency.
There are several reasons why companies may undergo restructuring and the benefits can vary depending on the circumstances. However, some of the major benefits of restructuring a company are:
- Cost reduction: One of the primary benefits of restructuring a company is that it can help reduce costs significantly. This can be achieved by streamlining operations, eliminating redundancies, and optimising resources. By reducing costs, a company can improve its profitability, increase cash flow and reinvest in growth opportunities.
- Improved efficiency: Restructuring can also help to improve the efficiency of a company’s operations. This can be achieved by reorganising departments, redefining roles and responsibilities, and implementing new technologies and processes. Improved efficiency can lead to better productivity, faster turnaround times and higher quality output, ultimately driving increased customer satisfaction.
- Enhanced flexibility and adaptability: Restructuring can help companies become more agile, adaptable and responsive to market changes. By restructuring, companies can reposition themselves to take advantage of emerging market opportunities, respond quickly to customer needs and adapt to changes in the competitive landscape.
The process of restructuring can be challenging and often involves making difficult decisions. It may also involve changes in the company’s culture and the way employees work. However, when done correctly, restructuring can lead to a more efficient and profitable organisation that is better positioned for success in the long term.
What are the tax implications of corporate restructuring?
Tax is an important consideration when planning a restructure, so it is critical to have expert advice at an early stage.
Where tax issues may arise, we collaborate with specialists such as accountants and tax advisers to ensure that your interests are protected and that you are able to maximise flexibility in taking opportunities.
What rights do employees have during a restructure?
Employees have strict legal rights that must be considered during restructuring. Employees may have their employment transferred to a different entity or there may be a requirement for redundancies. In either case, you should seek expert guidance to make sure you are meeting your legal obligations as an employer.
Where relevant, we collaborate with colleagues in our Employment team to ensure that employee rights are considered appropriately.
Our business restructuring solicitors’ fees
Cost is an essential issue to consider for any business and we want our fees and pricing structure to reflect this.
Where appropriate, we are able to handle some matters on a fixed fee or capped fee basis. This allows you to budget with precision.
For more complex matters where ongoing support is required, we will work to an agreed hourly rate dependent on the level of expertise needed. We will provide a clear cost estimate at the outset and any additional expenditure will be agreed in advance, so you always stay in control.
To find out more about our solicitors’ fees for business restructuring advice and to request a cost estimate, please get in touch.
Case Studies
- Company restructure The Longmores corporate team advised on the restructuring of a company by way of an agreement whereby existing shareholders received shares in a new head company. This created a new group structure, in addition, one existing director shareholder could realise the value of their shares and take a less active role in management by receiving a mixture of cash and company debt to a value of £1 million. Michael Budd and Thomas Knight advised on the restructuring.
- Advising our clients the co-owners of a local clothing design and manufacturing businesses, to dispose of their majority shareholding through a management buyout to the remaining management team. The transaction involved a significant element of cash consideration as well as a secured loan. We advised on the transaction approach, drafted transaction documents and advised on the bank financing required for the purchase.
- Helping a local storage business to acquire one of its London competitors, a company with a significant property asset. This was a strategically important transaction that allowed the company to achieve its rapid growth targets. The deal was conditional on receiving planning permission for the acquired asset, so required Longmores corporate and commercial solicitors to work closely together.
- Negotiating a holding company's acquisition of a 90% interest in a local construction company. During the negotiation, it was important for our client to put in place an earn-out provision so that the company shareholders of the acquired business were incentivised to increase sales and improve business performance over the medium to long term.
- Advising the directors of a motorcycle parts manufacturer to successfully sell its business to a customer in India. We helped them structure the transaction to protect the seller’s interests and make the sale as tax efficient as possible.
Speak to our business restructuring lawyers in Hertford
To discuss how we can help your business with restructuring, please get in touch.
