A Perth based property development and construction business specialising in large scale commercial and residential building projects had recently experienced a period of rapid growth. Insolvency was not an issue in this case, with the main focus being to protect and preserve the assets of the business during its growth phase.
In addition to expanding its core business, a number of separate businesses were established to service clients and markets outside the core business, including the construction of smaller scale commercial and residential building projects, and the provision of property related consulting and maintenance services. The directors held a controlling interest in each of these businesses, with other senior employees or consultants of the group owning the minority interests. The specific challenge was to bring each of these separate businesses and the main operating entity together under one umbrella to assist with branding and marketing, whilst ensuring that the risks inherent in each business did not impact on the other businesses in the group.
By working closely with the company’s tax advisors, the shareholdings of the various companies in the group were restructured to establish a new parent entity for the group. The parent entity then acquired a majority or controlling stake in each of the different businesses. By structuring the transaction this way, the group can now optimise its branding and marketing efforts with the peace of mind knowing that the operational and financial risks of each business are quarantined from the other businesses in the group.