Reorganisations & Restructures

Restructuring is a pivotal moment in the lifecycle of a business, typically involving high-pressure and time-sensitive transactions, and with significant tax implications for all parties involved.


Navigating the tax landscape during corporate reorganisations is complex. Meticulous planning and thorough due diligence are essential to maximise tax reliefs, ensure efficient and effective structures, identify opportunities and efficiencies and avoid potential risks.


We provide comprehensive restructuring advisory services, working proactively with clients to develop transactions that meet commercial objectives while maximising business and shareholder value through tax efficiency and effective risk management.


Why Restructure?


Businesses may benefit from restructuring for various reasons, such as:

achieving operational efficiencies, reducing complexity, or creating economies of scale

managing or mitigating different risk levels in various parts of the business

raising funds or incentivising employees, either for specific parts or the whole business

separating or amalgamating business components, or creating flexibility and tax efficiencies in preparation for a sale

facilitating mergers or allowing business partners to separate

supporting a succession strategy

improving business reporting and accountability

adjusting to changed business or personal objectives since the original structure was established.

Regular reviews of a business’s operating structure are advisable to ensure alignment with shareholders’ tax and commercial priorities, as well as overarching business and personal goals.


The tax environment for corporate reorganisations involves multiple taxes and their interactions, creating both significant risks and opportunities.


This complexity is heightened in scenarios such as separations, demergers and property transactions, especially since these transactions often don’t generate immediate cash flow, necessitating separate funding for tax charges.


Careful planning is therefore crucial to identify the most effective restructuring solutions, provide early certainty to relevant parties, manage tax and transaction costs, and explore opportunities for efficiencies.


Why Get a Restructuring Valuation?


In corporate restructurings, obtaining an independent assessment of enterprise value is crucial for effective decision-making, especially when multiple stakeholders are involved. This independent valuation can:

determine where the value breaks within the capital structure

provide a layer of assurance, particularly in scenarios like pre-pack administrations

validate the necessity of certain actions, such as a Company Voluntary Arrangement (CVA), to ensure future viability.

Various stakeholders may have an interest in enterprise value, including:

security trustees

creditors’ committees (Co-com)

administrators, insolvency practitioners and restructuring advisors

company management

pension trustees and regulators

We have extensive experience in restructuring cases where an independent view of enterprise value is essential. Many of these cases involve complex dimensions, either through the company's operations or its group's legal structure.


We also offer valuations of other assets and liabilities in corporate restructurings, including key intangible assets such as brands, and financial assets and liabilities such as debt instruments.

Importance

Restructuring involves high-pressure, time-sensitive transactions with significant tax implications.

Essential for achieving tax efficiency, mitigating risks, and maximizing business value.

Why Restructure?

Enhance operational efficiency and reduce complexity.

Manage different risk levels within the business.

Prepare for sales, mergers, or business separations.

Manage different risk levels within the business.

Support succession strategies and improve reporting.

Adapt to new business or personal objectives.

Tax Landscape

Complex interactions between multiple taxes.

Critical for separations, demergers, and property transactions.

Requires meticulous planning to manage costs and identify efficiencies.

Restructuring Valuation

Independent assessments are crucial for decision-making.

Ensures value breaks within the capital structure.

Provides assurance in scenarios like pre-pack administrations.

Validates actions such as Company Voluntary Arrangements (CVA).

Stakeholders

Security trustees, creditors’ committees, lenders, administrators.

Company management, pension trustees, and regulators.

Hamilton Blake’s Role

Extensive experience in international restructuring cases.

Provides valuations for enterprise value, intangible assets, and financial liabilities.

TAX DOESN'T HAVE TO BE TAXING

Tax can be tricky, through our team of dedicated tax specialists, we are able to help with everything from Basic Business Structuring to Share Schemes.

Honest, Professional, Expert Advice

Maximising your tax efficiency while ensuring compliance with ever-evolving regulations

Quality, Chartered Tax Advisors

Your trusted partners in navigating complex tax landscapes with precision and integrity

Backed up by Professional Industry Bodies

Ensuring excellence and adherence to the highest standards in tax advisory services

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