Restructuring of Architectural Practice
Our Transaction Tax team joined forces with our EQ Professions team to advise a firm of architects in their business restructuring.
A discussion between EQ and the owners determined that the existing partnership structure was not fit for purpose with specific reference to risk management, public perception and taxation. Our team ensured that the transaction was able to be implemented without any adverse tax consequences and our EQ Professions experts ensured that the resulting business model and supporting paperwork was robust for the future. We ensured that there was sufficient flexibility and options for future exit planning, succession and possible sale.
How we helped our client
Our client had expanded to such an extent that its risk profile meant that a traditional partnership was no longer appropriate. Following consultation with the partners, it was agreed to effect an incorporation, with each partner having a shareholding in the company (though pre-existing capital was not equal). During the process, one partner decided to retire and this was accommodated in the proposal.
Our team got the solicitors and bankers on board, provided the client with a detailed implementation checklist and allowed the incorporation to proceed on time, and with the minimum of disruption. Our role as project managers delivered a robust business model for the future with all future options considered as the practice evolves.
For more information or to discuss further, please contact our Transaction Tax team.
For further assistance with your professional queries, please contact our EQ Professions team.