Company restructuring

There are several reasons why a company may need to restructure. Whether it is to sell a business, merge, grow, prepare for a management buyout or to return to financial health, restructuring can make all the difference to your organisation’s goals.

Our corporate restructuring solicitors can offer expert restructuring advice to business owners, directors and senior management teams to find the right solution for your company. Contact us today on 0161 696 6229.

 

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What is corporate restructuring?

Corporate restructuring generally means that a company or organisation acts to significantly change its finances and/or it’s operational structure with the aim of improving the business – whether this is for a sale, to limit financial harm or to grow.

There are a number of ways a company can restructure. The changes may include:

  • Altering procedures
  • Forming a group company structure
  • Changing location
  • Selling assets
  • Altering its financial arrangements

There is no set way to restructure a company and what needs to be done will depend on the unique situation an organisation finds themselves in. For example, restructuring a business for sale would require a completely different approach than if the restructure was for growth. Whatever the reason for a restructure, legal advice is essential as restructuring can throw up many legal issues that need to be navigated correctly, so the company isn't left exposed.

Legal issues that can arise from a restructure include:

  • Redundancies and/or TUPE
  • Obligations to shareholders and investors
  • Restructuring finance and debt

At Stephensons, our commercial solicitors can offer bespoke legal advice and guidance on business restructuring that will help improve your organisation. We are also specialists when it comes to restructuring for a business sale. Call us today on 0161 696 6229.

Restructuring to sell a business

At Stephensons, our expert company restructuring solicitors specialise in restructuring for a business sale. Preparing your business for sale is not an easy task and can take a year or two to implement, because, as a company, you will need to take an overall look at the health of your business and do your due diligence. The key areas to look at when you are thinking of restructuring your business for sale include:

  • IT infrastructure
  • Your business strategy
  • Finances

A buyer will want to see healthy accounts that are clear and a coherent streamlined business strategy that is ambitious, yet realistic. Buyers may also be put off if they need to make a considerable investment in IT equipment and this may mean you need to invest in new infrastructure and initiate new procedures. A new IT restructure may lead to improvements in efficiency and productivity; however, this may mean you need to employ fewer people and redundancies may become inevitable.

Our corporate solicitors can advise you on whether your business would benefit from a restructure if you and your team are looking to sell the company. For more information on how we can help to prepare your business for sale contact us today on 0161 696 6229.

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Restructuring advice

Restructuring a business is not an easy task, there are many complex legal hurdles to jump over before you can start to reach your organisation’s goals, which is why you need an experienced legal team on your side. Here is what you need to think about before you start a corporate restructure:

Obtain legal advice

Whether you are preparing your business for sale, merger or growth, legal advice is essential. This is because anomalies and errors in the documentation or process used can cause delays, lead to legal disputes, substantial added costs and may even lead to a potential sale collapsing. 

Consult your business’ plans

This will enable the business to decide whether or not a restructure is appropriate and is being done at the right time. If growth into new markets is part of your plan or you are preparing your business for sale, it is wise to plan this out as soon as possible.

Plan ahead

Restructures do not happen overnight, you will need to plan, consult, and implement the necessary changes. Negotiations with employees, shareholders and creditors can also take time, so ensure you have left yourself enough time to do what you need without rushing.

Obtain tax and financial advice

A restructure is normally driven by commercial reasons, such as a business sale, however, you may wish to include tax-efficiently in your restructure plans. We recommend that you consult your tax advisor on whether the restructure is tax efficient.

Employees

A business restructure generally, has a big effect on employees. You may need to consider changing your organisational structure to make your business more desirable to buyers or investors. It is likely you will need to consult your employees if there are going to be redundancies or changes to the terms and conditions of their contracts.

Review trading agreements

Often overlooked in restructures, reviewing trading agreements are essential to a successful business restructure.

Shareholder protections

If a restructure is being considered for the purpose of a sale, then you may need to reconsider the shareholder's agreement.

Our commercial solicitors are highly experienced when it comes to corporate restructures and are available to provide legal advice to management teams. Contact us on 0161 696 6229.

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