Business Restructuring

Successful companies tend to expand and sooner or later they may require restructuring. Most common types of restructuring are merger and acquisition (M&A), reorganization, separation (split-up) and spin-off. Restructuring may optimize paying taxes, expand existing business, improve management, increase production, etc.

M&A transactions are commonly used in cases of expansion of business and acquiring new companies or for consolidation of existing ones.  Spin-off and separation (split-up) are the most effective instruments for dividing big companies into a number of small companies. Reorganization is changing the form of ownership, for example, Closed Joint Stock Company can be reorganized into Limited Liability Company.  Restructuring is not only taking all necessary legal steps in accordance with current legislation it also involves a lot of planning to prepare for changes concerning personnel of the company and the company itself in order to avoid interruptions in company’s normal work or production, administration problems and other negative aspects.  Only when careful preparations and all necessary planning are done, registration and other legal steps should follow.

Careful planning and implementation of all measures involved in the restructuring process will guarantee normal company functioning during transition period.