Restructuring takes many forms, but the common elements are that:

• some aspect of your business needs to change, and
• we can help you to effect that change.

Below are some examples of the types of restructuring we commonly undertake, making use of a variety of knowledge and skills from appraisal and taxation to financing and insolvency.

Corporate structure

Creating new companies and other entities is generally a straightforward process, with which we can assist, but our restructuring teams routinely perform more complex reorganisations of corporate structure, such as:

• the splitting of a business into parts to be owned by different shareholder groups
• ending a company’s existence through solvent (members’ voluntary) liquidation, or even
• restoring a company that has been dissolved.

Solvent liquidations

Dormant subsidiaries, end of life cash-shells and companies whose businesses need to be split between shareholders can all be tidied up, boosting business efficiency, using a solvent or members’ voluntary liquidation (MVL).

The tax implications of an MVL are important both for the parent company or shareholders and for the company itself. The alternative treatments of pre- and post-liquidation distributions should be considered and tax clearance will need to be sought from HM Revenue & Customs before the liquidation can be completed.

Striking-off and restoration

Dormant companies with no actual or contingent liabilities and simple tax affairs can be struck off the register at Companies House. Conversely, companies that have been struck off can often be restored. We advise on and assist with both procedures.

Migration

Companies occasionally migrate to another country. Although rarely used, this is a powerful tool in the right circumstances. Our unique European cross-border insolvency knowledge and experience makes us ideally suited to implementing such solutions.

Capital structure

• Does your company need to adjust its debt/equity ratio?
• Does it have excessive creditors?
• Is some form of financial or balance sheet restructuring appropriate?

Whilst the need to restructure a balance sheet is not confined to companies undergoing financial stress, this type of restructuring can often forestall the distress of a cash crisis. The techniques we use include examining the funds in use and the value of those investments, loans and exposures, and then refinancing if appropriate, sometimes cramming down creditors.

Operational restructuring

Addressing areas of underperformance in a business is often thought of as restructuring its profitability. We regard it as central to business turnaround, and note that it is often neglected if the balance sheet has been restructured successfully and any cash pressures have receded.

Whilst the existing management team is usually well able to continue operating the business, we often find it beneficial to introduce operational turnaround specialists to work with management, to ensure profitability and improved cash flow. Our turnaround role would be to work with all the stakeholders, managing the process. No two turnarounds are the same and we offer bespoke solutions created by our experienced insolvency team.