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Company Restructurings and Reorganisations
Restructuring and reorganising the structure of a company is often necessary to make a business more profitable or efficient, or to plan for a future exit.
Restructuring may take place when planning for succession, bringing in new shareholders or when a business is experiencing financial difficulties. When a business wishes to refinance or reorganise its legal ownership or operations, there is an important role for a corporate lawyer to play in ensuring compliance with all applicable laws and regulations. JMW has the experience necessary to ensure everything runs as efficiently as possible.
Speak to the corporate team at JMW today to find out more about our services and how we can help your business. Either call us on 0345 872 6666 or complete our online enquiry form and we will get back to you as soon as we can.
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JMW's corporate team provides advice to a variety of businesses. We have a wide range of experience in this complex area of law, and we can advise on:
- Mergers and de-mergers
- Distressed sales and purchases
- Capital reductions
- Share buybacks
- Share rights issues
- Share for share swaps and new group structures
- Creation of new share classes
- Joint ventures
When a business wishes to reorganise its legal ownership or operations in a business restructuring to make it more profitable or efficient, there is usually a role for a commercial lawyer to play in ensuring compliance with all corporate laws and regulations, and that the company and its directors can move forward on a sound financial and legal basis.
Restructuring is often necessary because of a financial crisis such as bankruptcy or other lack of corporate financial liquidity, including forced repayment of debt. In such circumstances, a change of ownership through a merger, demerger, management buyout or other business may be necessary.
Refinancing debt, selling parts of the company to another business or increasing the company's equity by issuing shares are some of the ways in which financial losses may be eased through a corporate reorganisation.
Management involved in situations such as these usually will seek outside financial and legal advisers. Legal advisers will be needed to draw up contracts and agreements to ensure all parties are protected and that the requirements of the Companies Act are met. Using a solicitor from outside the company will also help management to continue to operate the business without distraction during the period of transition.
Mergers, demergers, acquisitions and buyouts can have implications across all the business's activities, such as pensions, redundancy, tax, intellectual property and asset valuation. Each of these has a legal element requiring the input of experienced lawyers if the reorganisation is to go ahead smoothly.
Involving corporate lawyers when refinancing should enable you to be more confident when dealing with banks and other corporate finance sources, including private equity houses. Being one step removed from the company, they may be able to negotiate more favourable terms or see implications of a proposal that you may have missed.
Banks may cause liquidity problems by demanding immediate repayment of a debt and then, if you cannot pay, less favourable terms may be offered than the original loan agreement. We may be able to ease the situation and restore a more equitable arrangement.
Cash management to suppliers and from customers can be a vital factor in ensuring the financial stability of a business. We can help with drafting contracts and pressing for payments to improve the efficiency of transactions.
Obtaining our advice at an early stage can add value to the transaction because we can use our wealth of experience to advise on the advantages and pitfalls of your future plans, to ensure that you receive a tailored solution that allows you to reach your desired outcome.
The corporate team at JMW can liaise with your other professional advisors and draw upon the combined skills of the firm's partners in other fields in order to provide any of the parties in a refinancing or restructuring with comprehensive, commercially practical, added-value legal advice.