Optimisation of the business links and processes
It is important to remember that the new equity investors are particularly keen to understand not only the ownership structure but also the functional role of each company in the group. In a properly designed holding structure, EVERY company performs a specialised function in the group’s overall strategy. Creation of the working web of these functions demands a thorough analysis of the business partnerships with the outside parties; examination of relationships among the related parties within the holding structure must be conducted. Appraisal of the group’s tax position and a feasibility study of the group’s legal structure have to be performed. At this stage, the assessment of the tax aspects of restructuring is carried out, ineffective business functions are eliminated, and the negative tax consequences of reorganisation are mitigated.