Corporate
structures & demergers

A robust company structure affords your company the flexibility to maximise future opportunities, for the benefit of both your investors and employees.

We usually approach this type of company structuring exercise by comparing the three broad types of structure:

1. Base case – single company, no change
2. Parent and subsidiaries
3. Sister companies, each directly held by the investors

The next stage is to produce a paper that will consider the following issues, among others:

• Ability to use each of the above structures in the event of a sale of particular assets, synthetic sales or build to buy arrangements
• How cash is invested in the structure and returned to investors
• Impact on UK tax incentives, such as R&D tax credits and patent box
• Tax efficient employee equity incentives
• Ease and cost of implementation and operation
• Other tax implications

Do get in touch to discuss your company structure and the options you have as a biotech or tech company.