Restructuring

Business Restructuring

Business restructuring essentially involves the transfer of control of business entities or the transfer of business assets between entities or individuals. Many areas of law and tax are involved.

Many people have suffered from an inappropriate set up business or asset ownership structure. Sometimes these are the result of death duty planning exercises in the 1960's and 70's. What was a good death duty structure has frequently turned out to be a very restrictive one.

Whatever the reason, we are regularly called on to help reorganise inappropriate structures for business and asset ownership. We can provide cost effective advice that allows business owners to manage their affairs in the most effective way.

Our usual procedure in complex restructuring matters is:

  • After discussing the issues with the family and their advisers we write a letter of advice and give an estimate of our fees.
  • If we are retained to proceed, we then prepare a family agreement to provide an easy to understand summary of what has been agreed. It is not legally binding to avoid expensive stamp duty and CGT problems.
  • After the memorandum of understanding has been signed we then prepare all the necessary documents and process the various transactions.
  • When the matter is finalised we give the client and their advisers a folder with copies of all the relevant correspondence and documents. This provides invaluable assistance in later years when it becomes necessary to understand in detail what was done and why.

The issues arising in business restructuring are often similar to, or the same as, the issues involved in estate planning and business succession. Business restructuring often results from an estate planning or business succession exercise.

Part of our service is to provide document packages for standard situations, including:

  • self managed super funds
  • discretionary trusts
  • unit trusts
  • unit trusts (fixed)
  • hybrid trusts
  • partnership agreements
  • division 7A loan agreements (unsecured)
  • standard companies

Access our standard document packages online.

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