Solvent Restructuring

Helping you to adapt, prevent financial stress, unlock new opportunities, or simply move on

Sometimes, the business landscape changes in such a way that restructuring your company may be the best option to focus on the future.

Our Solvent Restructuring Service
You may be facing challenges due to operational inefficiencies, a lack of focus, or underperforming divisions. Perhaps you’re looking to wind down your company at the end of its useful life, or simplify the company structure before negotiating a sale.

Whatever your situation, the solvent restructuring process can achieve your objective and provide a sure footing on which to take your business forwards. There are various solutions a company can pursue, such as a demerger, reorganisation, and solvent winding up (also known as a Members’ Voluntary Liquidation, or ‘MVL’).

Demerger
A demerger lets you separate your company into distinct entities, enabling each to focus on its core operations. This approach can enhance efficiency and management focus, helping business units to thrive independently. By realigning business units, a demerger can unlock hidden value and allow investors to invest directly in the separate entities. A demerger is also a valid option for companies that wish to sell off parts of the business and focus on core activities.

Reorganisation
Reorganisation reshapes your company’s structure to improve efficiency and align with strategic goals. Whether restructuring debt, reshaping operations, or realigning management, tailored strategies can help your business address inefficiencies and streamline operations. The goal is to enhance business performance, address financial issues, or better align with strategic objectives.

Solvent Winding Up (MVL)
For companies looking to close operations in an orderly manner, a Members’ Voluntary Liquidation (MVL) is a viable option. This process allows shareholders to realise value while ensuring all obligations are met.

An MVL is typically initiated when the company has fulfilled its purpose or the owners wish to retire or move on, and it involves a formal declaration of solvency by the directors. Overall, this provides an orderly exit strategy; minimising disruption and preserving reputation.

When considering solvent restructuring, professional advice should be sought from us on the company’s financial position. We can provide you with advice tailored to your requirements, assist with placing the company into liquidation and have our licensed insolvency practitioner partners act as liquidators.

Why Choose Mercer & Hole?
Our personalised approach means we take the time to understand the specific needs of your business. With over a century of experience and a focus on future growth, we offer practical, strategic advice that goes beyond the numbers, helping you navigate the complexities of Solvent Restructuring with confidence.

Speak to a member of our team below, so we can help you find the best option for your business.