Business Reorganisations and Share Structures
Helping businesses put the right corporate and ownership structures in place to support growth, investment, succession and long-term commercial objectives.
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The structure of a business can have a significant impact on how it operates, grows and adapts over time. As commercial priorities change, existing company and shareholding arrangements may no longer provide the flexibility, protection or clarity that a business and its owners require.
A business reorganisation or share restructure may be needed for many reasons, including preparing for investment or a future sale, bringing new shareholders into the business, separating different areas of activity, reducing tax burdens, facilitating succession or simplifying an existing group structure. Changes may also be required to reflect new commercial arrangements between founders, shareholders or management teams.
DTM Legal advises companies, business owners, shareholders and management teams on a wide range of corporate reorganisations and share structure matters. We take the time to understand what the proposed changes are intended to achieve before advising on the legal structure and steps required to implement them.
Our Corporate & Commercial solicitors work closely with clients and their other professional advisers, including accountants and tax advisers where appropriate, to ensure the legal aspects of a reorganisation are carefully planned and coordinated. Our focus is on putting in place a structure that works for the business both immediately and as its circumstances continue to develop.
Business Reorganisation and Share Structure Legal Services
We advise on reorganisations and changes to ownership and share capital at every stage of the business lifecycle, including:
- Group reorganisations and corporate restructuring
- Establishing new holding company and subsidiary structures
- Share issues and allotments
- Creating new classes of shares and varying existing share rights
- Share transfers and changes in ownership
- Share buybacks and other internal ownership changes
- Reductions and reorganisations of share capital
- Share subdivisions and consolidations
- Demergers and the separation of business activities
- Reorganisations to support investment or external funding
- Restructuring ahead of a business sale or other corporate transaction
- Ownership changes connected with management succession
- Reviewing and updating articles of association and shareholders’ agreements as part of a restructure
- Preparing the corporate documentation required to implement and record a reorganisation
Why Instruct DTM Legal?
A successful business reorganisation requires more than completing the necessary corporate documents. The structure chosen should reflect what the business and its owners are ultimately trying to achieve, while also considering how the arrangements may affect future investment, decision-making, succession and potential exit plans.
Our Corporate & Commercial Team provides practical advice based on your wider commercial objectives. We will help you explore the available options, understand the implications of different structures and identify potential issues before changes are implemented.
Reorganisations can involve several interconnected steps and often require input from accountants, tax advisers, lenders and other professional advisers. We work collaboratively with those involved to help coordinate the process, establish a clear sequence of actions and keep the transaction progressing efficiently.
Whether you are restructuring an established corporate group, changing the ownership of a family business or adapting your share structure ahead of the next stage of growth, our approach is focused on delivering an arrangement that is clear, commercially workable and appropriate for your future plans.
We provide:
- Practical and commercially focused corporate advice
- Clear guidance on the options available and the steps required
- Strategic advice informed by your wider business objectives
- Experience across a range of corporate structures and ownership arrangements
- Coordination with accountants, tax advisers and other professional advisers
- Responsive support throughout each stage of the reorganisation
- Clear and comprehensive corporate documentation
Get in Touch
Whether you are considering a group reorganisation, changing your company’s share structure or restructuring ownership ahead of the next stage of your business, our Corporate & Commercial Team can help you understand your options and put the appropriate arrangements in place.
To speak to a member of the team, contact the Corporate & Commercial Team on 01244 354 800 / 0151 321 0000 or email corporate@dtmlegal.com.
Request a Consultation
Preparing some key information before speaking to a solicitor can help your advisers understand your objectives, identify potential complications and determine the most appropriate way to structure the proposed changes. Read our Key Considerations guide to understand some of the points a solicitor may wish to discuss when responding to your enquiry. It can help you prepare the relevant information and make your initial conversation more productive.
Frequently Asked Questions
Commonly asked questions regarding business reorganisation and share restructures.
- What is a business reorganisation?
- When should a business consider changing its share structure?
- How long does a business reorganisation take?
- Do I need tax advice before reorganising my business?
- Can a business reorganisation help prepare a company for sale or investment?
A business reorganisation involves changing the legal or ownership structure of a company or group of companies. This might include introducing a new holding company, moving companies or business activities within a group, changing share ownership or separating different parts of a business.
The appropriate structure will depend on what you are trying to achieve. Before implementing any changes, it is important to consider the legal, commercial, tax and accounting implications and to ensure that each step is completed in the correct order.
A company may need to change its share structure when bringing in an investor, admitting a new shareholder, changing the balance of ownership between existing shareholders or creating different economic or voting rights.
Share structures are also commonly reviewed as part of succession planning, business reorganisations and preparations for a future sale. The sooner the intended outcome is identified, the easier it is to establish whether existing shares and constitutional documents remain suitable.
The timescale will depend on the complexity of the proposed structure and the number of companies and shareholders involved. A relatively straightforward share reorganisation may be completed more quickly than a group restructure involving multiple transactions, third-party consents or changes to financing arrangements.
Obtaining tax advice, lender approvals or shareholder agreement can also affect the timetable. Establishing a clear plan at the outset helps ensure that the necessary steps are completed in the correct sequence.
Tax considerations are often an important part of a business reorganisation, so specialist tax advice may be required before the legal structure is finalised.
Your solicitor and tax adviser will usually work together, with the tax adviser confirming the relevant tax position and the solicitor preparing and implementing the legal documentation required to put the agreed structure into effect. Taking advice early can help prevent a proposed structure from having unintended consequences.
Yes. Businesses will often review their corporate and share structures before seeking external investment or preparing for a future sale.
A reorganisation may help simplify an existing group, separate assets or business activities, clarify ownership arrangements or ensure that the appropriate company is ready to receive investment. The right approach will depend on the objectives of the business and the requirements of any proposed transaction, so planning well in advance can provide greater flexibility.
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