BUSINESS RESTRUCTURE

/
Restructuring.jpg

Businesses have a lifecycle.  They grow, expand into new markets, merge with a competitor, divest assets and return capital to owners. Markets continuously evolve and change.

A business owner may have particular needs, goals and outcomes they want to achieve over the lifetime of their business, so it’s inevitable that a business will require a restructure at some stage.

There are a number of reasons why a small business may restructure:

  • Asset Protection

  • Preparing to sell

  • Outgrow initial structure

  • Succession & Estate Planning

  • Tax changes / Better tax outcomes

  • Industry / Economic risks increase

  • Franchising

  • New partner/business associate

  • Sale of part of a business

  • Merging/Acquiring businesses

  • Conversion of Trusts into Companies

  • Joint Venture

A restructure requires professional advice:

  • An Accountant will consider the Tax Law and be aware of the tax consequences that may be triggered when a business is restructured

  • A Lawyer will consider the legal consequences of a restructure

Restructuring can be expensive and the benefits must outweigh the costs! 

Additionally, you must consider how quickly your business could recover.

If you would like to discuss your current structure or a restructure with us, please contact our office.