Consolidation of Global Operating Structure
Stavros and Marina Rastopholopolis run an digital media company with operations in the US, UK, Singapore, Australia, Canada and India. Operations in each country are housed in local corporate entities with shareholders including a combination of local nominee shareholders, Stavros and his wife Marina. Stavros and Marina are UK citizens and US permanent residents and have been approached by an interested purchaser.
Through due diligence, the purchaser began to become disinterested due to the unconsolidated structure and use of nominee shareholder arrangements.
After a review of the structure in line with the groups vision and growth strategy, it was decided that the group entities should be restructured into a consolidated group ownership structure with a UK Head Company, UK Operations Company and A UK IP company. Regional operational entities would be owned in the structure under the operations company.
The restructure allowed for a cleaner structure in the event of a sale of the business and provided streamlined compliance and governance between intercompany transactions and agreements.