To increase administrative, operational or economic efficiencies – updating a group structure can reduce intra group administration, consolidate certain operations within a single entity, and clarify management responsibilities.

To raise finance or improve supplier term – having a well-structured group is associated with higher credit ratings, making it easier to raise finance and increase credit limits with suppliers to improve cash flow.

As a lead-up to an acquisition or sale of a company or business – before buying a business you may need to create a new subsidiary in the group to hold it. As a vendor, a pre-sale reorganisation can make your proposition more attractive to buyers.

Following an acquisition of a company or business – this helps ensure that the acquired company or assets are integrated into the existing company structure in the most effective way.

To de-risk or strengthen your group – through demerging part of the group, undertaking debt/equity swaps, reviewing intercompany accounts and trading or simply ‘tidying up’ the group structure.

To reduce tax liability by creating a more tax efficient group structure – group reorganisations for tax purposes may include property or asset transfers, rearranging cash flows, consolidating subsidiaries or creating new companies. Reorganisation may be particularly tax efficient for multinational groups.