De-mergers

For parties going through a corporate divorce where the aim is to split two or more businesses, traditional solutions - whether buyouts, buybacks or sales of part of an enterprise - often flounder on the rocks of valuation, funding issues or taxation. But the happy ending can be a Section 110 solvent reconstruction (Insolvency Act 1986), otherwise known as a de-merger.

De-mergers can be a neat way of resolving shareholder/management disputes and for separating two or more businesses, especially where operating the businesses together is not working and they will perform better under separate ownership...