We have helped many business to demerge successfully.

Our recent instructions include:

Splitting a business after a shareholder dispute

Advising two shareholders on the statutory demerger of their jointly owned private limited company. The shareholders had fallen out. They each wanted to create separate companies. Care was needed on the areas in which the new businesses could operate to avoid unfair competition. Following the demerger, each shareholder was able to focus more directly on their respective businesses via their own separate legal entities

Demerger of a business allowing more focus on each separate business from the high street arm

Our client’s online business was taking off and to reduce risk we drafted a demerger agreement for the retailer demerging the online operations from the high street arm. The separate businesses had their own management team.  The different demands of each business could be fully addressed without splitting management time. Our client’s key concerns were over the goodwill, branding and continuity of supply contracts.

Reduction of capital demerger

We worked with a property management company holding multiple properties valued at different prices in different regions across the UK. We were acting for the company after the shareholders fell out and wanted to split the business by region. The business was split through a reduction of share capital.  We also advised on the tax treatment and the demerger was structured tax efficiently.

 

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