About practice «Structural consulting»
Business structure is the overall system of a company or a group of companies, which includes a few interrelated aspects::
- the ownership aspect (who owns the company, how is the business's ownership and control system arranged);
- the management aspect (who runs the business, what management and control mechanisms are in place, how the subordination system is set up, and how relationships in the group of companies are structured);
- the financial and tax aspects (how cash flows within the group of companies, what sources are used to fund certain areas of business, what taxation system, tax benefits, and preferences are used by the companies);
- the legal aspect (what contractual relations the companies in the group have with each other and with external counterparties).
Business structuring is a complex process that entails the development (planning) and subsequent implementation of changes and updates to the business structure's various aspects.
The complexity of structuring stems from the fact that changing one aspect of the structure without affecting others is impossible. For example, replacing a supply contract with a give-and-take agreement (changing the legal aspect) automatically results in a change in the revenue and expense structure, as well as the taxation procedure and tax amounts to be paid by the contract parties (financial and tax aspects).
Business structure is constantly and gradually changing spontaneously, and solving immediate problems involves selective changes to the structure. However, decision-makers often do not take into account all the nuances of how a given change may affect other aspects of the business. As a result, flaws and distortions build up, reducing the efficiency of the business, preventing it from growing, or generating significant risks. In this case, complex changes should be implemented in order to achieve business development, security, and efficiency goals.
It is also necessary to structure the business when global changes are planned, such as attracting new investors/partners, providing significant growth through new contracts, entering new sectors or closing areas that have lost relevance, etc.
The practice area team's key competence is to implement integrated projects for structuring groups of companies. We accomplish the following tasks as part of these projects:
- building the most effective corporate structure that takes each owner's interests into account;
- establishing a secure ownership structure while keeping the company's and beneficiaries' goals in mind;
- bringing the group's actual management structure into line with its legal structure;
- improving the structure to make it more attractive to potential investors, including banks;
- selecting tax planning tools that are effective, legal, and safe for the specific group of companies;
- identifying and mitigating current and accumulated past risks (tax, property, etc.) of the group of companies, its owners, and top management;
- developing a plan for upgrading the group of companies when opening new lines of business or scaling up, or, on the contrary, if the business fails;
Business structuring Over the last 3 years, more than 100 legal structure development projects have been completed successfully
In 2020, over RUB 10 billion in risks were mitigated
Over RUB 7 billion in assets were protected
The average score for customer satisfaction with business structuring project results is 9.6 out of 10
The practice area team accomplishes the tasks assigned by the clients both comprehensively, as part of the "Diagnostics and Development of Legal Structure" project, and selectively, by advising on specific issues or clusters of issues.
Our Awards and Ratings
Leading Russian companies in the M&A (Mergers and Acquisitions) category - Tier 5
Leading Russian companies in Retail and Trade, FMCG: Advising retail and FMCG leaders
Russia's Leading Companies, Corporate Law/M&A – Group IV