Corporate Restructure – success through merger

Background

‘Eco Traders’ and ‘Logic Solutions’, were two independent corporate groups who provided complimentary products and services. Both companies were struggling to manage debt and secure finance to continue trading. They believed their chances of success would be greater if they merged.

How GWA helped

GWA oversaw a complete re-structure which entailed creating a new holding company ‘Ecologics’.

All debts were streamlined and taken up to the parent company.  The parent company was then able to secure finance from a 3rd party and reorganise its management structure to ensure it was able to continue trading.

The merger and re-structure was managed to avoid any tax or stamp duty on the share exchanges. Most importantly, it allowed both companies to capitalise on improved structural efficiencies and synergies associated with the new structure.  This allowed Ecologics to continue trading as a merged entity, where as prior to the merger, the future of both businesses had been in jeopardy.

We respect the privacy of everyone who comes to GWA for advice. So while this case study is true, we have changed client names to maintain business and financial confidentiality.
This information should be taken as general guidance only. Before making any decision or taking any action, you should seek professional advice.