Corporate Restructuring and Turnarounds

Course Overview

In response to difficult market conditions and continued pressure from institutional investors and/or commercial bankers, a corporate restructuring seeks to maximise shareholder value through the re-arrangement of the equity ownership and debt obligations of parent companies and their subsidiaries.

The processes described in this course allow a company to release cash, revert to core competencies, improve profits and, where publicly quoted, to enhance a stockmarket following.

If, however, it appears that a company is sliding towards insolvency, its directors and advisers will benefit from a clear understanding of the options available for companies in financial distress so that appropriate action can be taken while there is still time to make a difference.

Course Content

Background

• When should a restructuring be considered
• When it becomes unavoidable
• Preliminary considerations

Equity Restructuring
Rationale

• Clarifying the objectives
• Carve-outs or partial spin offs
• Spin-offs, split-offs & split ups
• Tracking stock
• Valuing a subsidiary

Avoidance of potential taxes

• Income tax, capital gains tax, stamp duty & VAT
• Corporation tax, stamp duty land tax & balancing charges
• Degrouping charge

Demerger Mechanics

• Tax planning and tax reliefs
• Direct dividend and triangular structures
• Direct / indirect reduction of capital
• Statutory demergers
• Schemes of reconstruction
• Liquidation schemes
• Schemes of arrangement
• Pre-sale hive-downs

Managing a turnaround

• Gradual decline or quick descent
• Is a turnaround possible?
• Qualities required in a turnaround manager
• Assessment of the management team
• Directors’ insolvency responsibilities
• Immediate action & crisis mentality
• Cash flow focus & crisis stabilisation
• Formulating a workable restructuring plan
• Handling the creditors
• Negotiating the options
• Completion

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.