Family owned & managed business operated through a group structure since 2002. The group had 3 separate business operated by individual family members. The directors of the company wanted to partition the group into 3 separately owned business and partition away from the current holding structure.
To facilitate the partition of the business the existing capital structure of the group holding a number of steps had to be taken with the objective of obtaining advance approval from Revenue for the partition of the group:
The outcome was Revenue approval on the “group partition” with no capital gains on partition of the group and no value shifting or distribution issues for company shareholders. The companies were under separate ownership after the partition with each owner free to manage their company independently from the main group.