Untangling a business from a group (or single entity) in a tax neutral fashion takes time and care. Colin Askew, Matt Cummings and Alisha Kouser (Eversheds Sutherland) provide a case study considering the tax issues on a partition demerger.
A demerger in a simple sense is the corporate mechanism of separating business streams or divisions. In circumstances where one company holds several business streams demergers are a helpful tool to separate out such streams.
Commercial drivers behind a demerger include the following:
Increasing the value of the company: a demerger may allow for a company to realise the full value of each business stream. This is relevant particularly where each stream of the company does not share the same business goals therefore a demerger allows each business stream to pursue its independent strategies to meet its long-term goals.
Managing business growth: where one company holds several business...
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Untangling a business from a group (or single entity) in a tax neutral fashion takes time and care. Colin Askew, Matt Cummings and Alisha Kouser (Eversheds Sutherland) provide a case study considering the tax issues on a partition demerger.
A demerger in a simple sense is the corporate mechanism of separating business streams or divisions. In circumstances where one company holds several business streams demergers are a helpful tool to separate out such streams.
Commercial drivers behind a demerger include the following:
Increasing the value of the company: a demerger may allow for a company to realise the full value of each business stream. This is relevant particularly where each stream of the company does not share the same business goals therefore a demerger allows each business stream to pursue its independent strategies to meet its long-term goals.
Managing business growth: where one company holds several business...
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