Common issues in an intra-group reorganisation


Published by a ÑÇÖÞÉ«ÇéÍø Corporate expert
Practice notes

Common issues in an intra-group reorganisation


Published by a ÑÇÖÞÉ«ÇéÍø Corporate expert

Practice notes
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An intra-group reorganisation involves the transfer of group company share capital or group assets between two or more companies in the same corporate group.

Reasons for intra-group reorganisations

Intra-group reorganisations are carried out for a variety of reasons, although the key motivation is generally to boost administrative, operational or economic efficiencies. Reorganisations may be linked to a sale or acquisition transaction with a third party, whether:

  1. •

    before or after the acquisition of a company or business from a third party, or

  2. •

    before the sale of a group company or business to a third party

Reorganisations may, however, have no connection with any third-party transaction, occurring instead when it is feasible or appropriate.

Reorganisation before or after an acquisition of a company/business from a third party

A group may decide to undertake a reorganisation before the acquisition of a company or business to ensure that, post-acquisition, the newly acquired company or business sits appropriately within the corporate structure of the group. However, it will not always be appropriate to implement the reorganisation before the acquisition.

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Intra-group reorganisation definition
What does Intra-group reorganisation mean?

It involves the transfer of group company share capital or group assets between two or more companies in the same corporate group. Intra-group reorganisations are carried out for a variety of reasons, although the key motivation is generally to boost administrative, operational or economic efficiencies.

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