When is the right time to consider restructuring your business

Introduction

Businesses today operate in a landscape that has been reshaped by the pandemic. Owners who periodically review and reset their structure are best placed to exploit changing circumstances and new opportunities.

There are a wide spectrum of circumstances where reviewing and reorganising your business structure can help your business achieve:

greater profitability
harness efficiencies
better manage risk
reduce tax liabilities and help you realign your business and personal goals.

What are the benefits of restructuring?

What are the benefits of restructuring?

Restructuring ensures that your assets and resources are performing to their best potential.

Restructuring enables you to re-organise the ownership, operational, capital, tax and legal aspects of your company to align your structure to your long-term goals and personal wealth objectives.

When should I restructure?

Restructuring should be considered every time your business prepares to or goes through a significant change or new phase in its life cycle.

Scenarios where you might consider restructuring activity include:

periods of fast growth
a need to improve tax efficiencies
working capital improvement
ring-fencing risk
exit planning.

What are the most common forms of restructuring?

Restructuring can take many forms and will depend on what you wish to achieve. The most common activity includes:

consolidating businesses into a group structure
establishing a new holding company
share reorganisation
demerging or splitting a group structure

When was the last time you did a review of your business structure?

During last 12 months?
12-24 months?
Over 24 months ago?