Contact our offices
Make an enquiry
How can we help?
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.
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:
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:
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.
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:
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.
Our client undertook a group restructuring to streamline ownership and attract new investors. The restructuring involved a share-for-share exchange, consolidating the group’s assets under a single holding entity. New shares were issued, and existing shares were reclassified to accommodate both the client’s original shareholders and incoming shareholders. A comprehensive shareholders' agreement was crafted to define the rights and obligations of all parties, including governance provisions, rights of first refusal, and exit mechanisms. This restructuring allowed for improved operational efficiency and clearly defined shareholder relationships, setting the foundation for future growth.
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:
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.
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.
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.
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.
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.
Often overlooked in restructures, reviewing trading agreements are essential to a successful business restructure.
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.
loading staff
As we enter a new year it is a good time for businesses to start afresh with good practices and a great place to start with this is reviewing commercial contracts . There are many contracts that businesses will be involved in regardless of the size or...
More and more landlords communicate with their tenants primarily via email. However, this can cause issues later down the line if there is no clause in the tenancy agreement which gives the landlord authority for tenancy documents and/or a notice...
Commercial reorder
