Structuring your business for the future

15 February 2024

Ian Haynes explains why reviewing your structure should be part of your strategic plans this year.

The way in which you structure your business can have a huge impact its value and the amount of tax you pay.

Your structure is the foundation upon which everything else is built. It can determine whether your business goals and objectives are met, whether your employees are satisfied and even a business’ purpose.

With all of this in mind, your structure needs to be aligned your goals, future plans and the current stage of your business’s lifecycle.

Doing so will allow you to adapt to the most challenging of circumstances, whilst also helping you to bring your ambitions to life.


Why restructure?

The reason behind restructuring is entirely dependent on the business, the business owner and their circumstances.

Maybe you want to increase the value of your organisation before a sale or facilitate an MBO. Or perhaps you want to reorganise the owners, operational, capital and legal aspects of your business. A restructure could also be triggered by the need to protect intellectual property, cash or assets.

The list of reasons why businesses restructure goes on, and the reality is that your reasoning could be entirely unique to yourself.


How do I restructure?

There’s lots of different ways in which you can restructure your business. Again, this will come down to your own situation as the owner of the business.

More common forms of restructuring include:

• Consolidating your business into a group structure

• Passing shares to other individuals

• Share re-organising/reclassification

• Demerging or splitting a group structure

You might look into several of these options as your business progresses through different stages of its lifecycle. You might outgrow the structure you started with when your business starts to flourish. And when you start to look at your succession plans, your structure might require another overhaul to allow you to reach your goals.


What to consider when reviewing your structure…

When looking at your structure it’s vital to go through your business with a fine-tooth comb. Here are some key considerations to keep in mind:

What does your current structure look like? Start with an audit of the current structure. What is your business’s core purpose? Where do your team fit in? Could you be operating more efficiently?

What are your goals? Where is your business now, and where do you want to be? Does your current structure help or hinder your personal and business goals? The structure determines how a business operates and even who manages it.

Your tax position – Your business structure can have a huge impact on your tax liability. It’s worth investing the time to research which structure will place you in the most efficient position possible whilst remaining compliant.

Do you have the right people by your side? It’s important to emphasise how complex the process of restructuring can be. So it’s crucial to have the right advisors by your side. They will look into your current structure, spot any chinks in the chain and advise you accordingly.


Supporting you with your business’s structure

If you’re thinking about restructuring your business, it’s absolutely vital to assess all your options, to have all the information you need at hand and to have the support and guidance of experts to call upon.

Our team of tax experts work closely with business owners to ensure their organisations are structured in the most efficient manner possible, helping them to grow and achieve their goals.

If you’re considering whether now is the time to restructure, get in touch today to see how we can support you.



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