Specialist legal advice on business insolvency, restructuring, and demergers
Whether your business is facing financial challenges, shareholder relations have broken down, or you’re preparing the business for sale, BHW’s corporate solicitors can assist you.
Our specialist corporate solicitors can advise on business insolvency, business restructuring, and business demergers. Our team can support you with a variety of scenarios including debt restructuring, administration and liquidation, and company voluntary arrangements (CVAs).
Although business restructuring and business demergers can often come about as a result of business insolvency, there are also other reasons why it may be necessary including shareholder disputes, mitigating risk, tax considerations, staff restructuring, or selling part of your business.
Is your business facing insolvency?
If your business is facing insolvency or financial distress, our corporate solicitors can assist with practical and appropriate advice to suit your business situation. BHW can advise on a disposal strategy or work with insolvency practitioners on administration or liquidation matters.
Do you need a business restructure or demerger?
Whatever your reason for restructuring or splitting your business, it’s important that you involve legal advisers early. Restructures and demergers take time and careful planning, and the right approach will depend on your current position, what you want to achieve and who will own what once the transaction completes.
Our business restructuring experts can work with your accountants to put in place the most tax-effective solution to meet your requirements.
What does a demerger resolve?
A demerge involves a restructuring process where a single company or corporate group splits into two or more independent, stand-alone entities. It is typically used to resolve operational, financial, and relational friction points within a company.
This can allow shareholders to pursue different objectives and prepare part of a business for sale. There are several ways a demerge can be structured, and the appropriate approach will depend on the company’s existing structure, its assets and liabilities, shareholder objectives and tax considerations.
Our insolvency solicitors in Leicester can work with your accountants and other professional advisers to establish an appropriate structure and implement the transaction.
What is insolvency?
Insolvency is when a person or company is unable to pay their debts. A company is usually treated as insolvent if it either can’t pay its debts as they fall due, or its liabilities are greater than the assets.
If you’re concerned your business may be insolvent, it’s important to get advice early, as directors have specific legal duties once insolvency is likely.
Whether you’re planning a restructure, considering a demerger or worried about your company’s financial position, we can help you understand your options and take the right next step. Contact us today to speak to one of our corporate solicitors in Leicester.
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