Right from the time a company is founded, its corporate and capital structures also start taking shape. While these structures are developed at a given time to best suit the requirement of the business, evaluation of these structures and their effectiveness seldom takes place at later stages.
The significance of a capital or corporate structure often comes into play when attempting to sell off a business unit, company or group of companies. Quite often, the buyer hinges the ‘buy or not-buy’ decisions on how simple and transparent or complex the corporate structure of an organisation is. Complex structures can make buyers and regulators wary, leading to a prolonged evaluation process, achieving lower offer prices, or even jeopardising the deal.
At PKF, we understand our clients’ long-term objectives at the very outset. We critically examine the capital or corporate structure of the organisation since that can be a crucial element in streamlining the group to fulfil the next set of goals. Our knowledge of local, free zone and offshore jurisdiction company laws enables us to provide clear solutions to corporate structuring issues that support and lend strength to client long-term goals.