Reorganisations and Demergers

In our ever-changing economic climate and the challenges in ensuring transparency, accountability, good governance and compliance, there is a need to review complex group structure to ensure to ensure business efficiency and improve profitability. Other reasons for reorganisations include tax planning, or as a precursor to an acquisition or a sale.

Our approach is to ensure that our client’s successful transformation process is simple and efficiently managed. Our specialist employment, real estate and banking teams will work together with the Corporate Team to provide a combined expertise for a seamless solution.

Our specific areas of focus include:

Group reorganisations

Intra-group transfers, including hive-ups, hive-downs

Demerger

Capital reduction

Share for share exchange

Restructuring agreement to include merger, acquisition (including debt sale), swaps, divestment, management buy-out (MBO), management buy-in (MBI)

What We Do

At MKB Law our multidisciplinary teams, led by a partner, will work closely with the clients to understand their businesses, management strategies, stakeholders involved and most importantly their challenges. We work collaboratively to provide a strategic and seamless solution to achieve the best possible outcome for our clients.

A demerger by way of capital reduction involves the holding company reducing its capital by transferring the assets as a dividend in specie to a new holding company that in turn issues shares to the shareholders and the shares related to those assets are then cancelled. A reduction of capital can be utilised where the holding company does not have sufficient distributable reserves, or does not wish to reduce the amount of distributable reserves, or has substantial non-trading activities, or it is anticipated that one of the demerged business will be acquired by a third party.

Gordon McElroy
Director
gmce@mkblaw.co.uk
028 9099 3111

Lynsey Henderson
Solicitor
lh@mkblaw.co.uk
028 9099 3117

Jose Lazaro
Solicitor
jl@mkblaw.co.uk
028 9099 3114

MKB Law understands business. We are pleased to work with clients across a range of sectors, including:

Experienced

Our experience and expertise allow our team to provide an unrivalled service to all clients.

Personal

Our personal understanding ensures our clients are at the forefront of our services.

Flexible

Our team provides clear legal guidance to complement your business structure.

Specialised

Our clients span all industries, from technology to agriculture and hospitality to renewables.

Or please call us on 028 9024 2450 or email info@mkblaw.co.uk

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