Demerger support
Frequently we find that clients’ businesses grow in unexpected ways and the need to demerge two businesses or certain assets most commonly arises for tax purposes.
The most common form of demergers are statutory processes which can come with many complications and which, if not handled correctly, can cause significant problems for the parties involved.
A demerger is a significant undertaking for any business and comes with a certain amount of risk. Separating a business requires considerable planning and preparation to make it work.
At Progeny our team can offer you expert advice throughout every stage of the demerger process – from the earliest planning stages, through implementation, to the delivery of a successful conclusion.
With offices throughout the UK, we offer face-to-face services nationwide. Giving you the opportunity to meet your advisers in person to discuss your specific needs.
As a B-Corp certified firm, we are proud to join a select group in the UK professional services, committed to high standards of social and environmental impact globally.
We work hard to form excellent client relationships, understand their aspirations and give the quality service and bespoke structuring they require to address their complex needs.
Our financial and legal advisers work closely together to get the best results for you, your family and your business.
How we can help you with your demerger
We minimise the disruption and allow you to make the smoothest possible transition to becoming a demerged business.
The most common reasons for demerger tend to be:
01
Accumulating
Accumulation of non-trading assets (e.g. cash / residential properties) which impacts available tax reliefs.
02
Protecting
Protection of tax reliefs or non-trading assets from commercial risk or a successful division from a poorly performing division.
03
Maximising
Maximising the value of two businesses by separating them.
04
Separating
Separating two otherwise unrelated businesses prior to sale to improve the overall focus of both companies.
Demerger guides
Protecting assets by using capital reduction demergers
There are a number of different methods for demerging assets from a corporate entity. One particular method – the capital reduction demerger – has…
25th March 2021
There are a number of different methods for demerging assets from a corporate entity. One particular method – the capital reduction demerger – has…
Read more
Frequently Asked Questions
A demerger is when a business is broken into two or more components. This can be for a variety of reasons such as to raise capital or to focus on core business lines.
Demergers have several steps that require shareholders’ approval and sign.
During a demerger, in most cases the shareholders of the parent company would receive a dividend of shares or receive a return on capital.
A liquidation demerger is when a business is dissolved, and its assets are transferred to new companies.
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