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 business set up 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 very restrictive.
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 client 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 an agreement which provides an easy to understand summary of what has been agreed.
- After this 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 above procedure varies, depending on each client’s specific circumstances.
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