Preparing for IPO, exit, significant investment or refinancing
Many group restructures are undertaken in order to prepare a group for a significant event such as an IPO, sale, or investment. This has many benefits. It makes the whole transaction less risky at every stage, and increases the chance that negotiations will progress quickly and smoothly.
The group’s legal structure can also influence the pricing of the transaction. When a buyer or investor sees that a group has an overly complex or potentially problematic structure, they are likely to use this when negotiating the deal, whereas a group that has everything in place and is ready for growth is a much more appealing proposition. So ‘getting your house in order’ first has real financial benefits.