Commercial Solicitors in Leicester – Expert Legal Guidance for Business Restructuring
At Josiah Hincks, our team of solicitors in Leicester have extensive experience advising businesses across a range of sectors on strategic restructures. One of our areas of expertise is corporate demergers—a highly effective way to separate and streamline different aspects of a business, enhance commercial value, and support succession or exit planning.
We work closely with tax advisors, accountants, and corporate stakeholders to deliver tax-efficient and legally robust demergers that support long-term business objectives.
What Is a Demerger?
A demerger is a form of corporate restructuring that involves dividing a company or group into two or more separate entities. This process can be used to split trading activities, assets (such as land and buildings), or subsidiaries into newly formed or existing companies.
There are various ways a demerger can be structured, including:
- Capital Reduction Demerger
- Statutory Demerger
- Liquidation Demerger
- Share Exchange Demerger
The chosen method depends on the objectives of the restructure and the tax, legal, and commercial implications.
Key Benefits of a Demerger
A well-planned demerger can deliver a wide range of benefits:
- Tax Efficiency
Certain demerger structures can allow businesses to reorganise without incurring Capital Gains Tax or Stamp Duty. Valuable tax reliefs such as Agricultural Property Relief (APR) and Business Property Relief (BPR) can be preserved for inheritance tax planning. - Enhanced Business Focus
Separating activities enables management teams to focus on specific parts of the business, driving operational efficiency and profitability. - Increased Business Value
Breaking a group into distinct entities can reveal or enhance value that may be obscured within a larger corporate structure. - Succession & Exit Planning
A demerger allows business owners to allocate different parts of the business to different shareholders, facilitating smooth transitions or partial exits. - Asset Protection
Isolating valuable assets (such as land or IP) into separate entities can offer protection from trading risks or third-party claims. - Flexibility for Sale
Demergers can prepare a business for partial or full sale, allowing owners to retain specific assets or divisions and sell others.
Why Choose Josiah Hincks?
As leading Commercial solicitors in Leicester, we offer:
- A dedicated team with deep experience in complex restructures
- Close collaboration with trusted tax and financial advisors
- Practical, commercially minded legal advice
- A personalised service tailored to your business needs
Whether you’re considering a business sale, separating property, or preparing for succession, our team can help guide you through every stage of the demerger process.
Contact Our Commercial Solicitors in Leicester
If your clients—or your own business—are exploring a demerger or wider restructuring, speak to our experienced team today.
Andrew Eagle – rae@josiahhincks.co.uk
Palbir Vadesha – pvadesha@josiahhincks.co.uk
Mitchell Coppen – mcoppen@josiahhincks.co.uk
Call us on – 0116 255 1811
Should you have any queries regarding this, or any other Commercial matters please don’t hesitate to contact Josiah Hincks Solicitors and we would be happy to help.
You can find out more about our Commercial team and expertise here.
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