The Conglomerate
Moser Bland & Co. affected a significant restructuring for a very large and long term client. Over a 20 year period, our client has grown from a small Sydney based business into a national concern employing more than 100 staff with revenues of $90 million.
Our client had 17 separate entities – companies, trusts, partnerships, etc – and the structure had grown inefficient and unwieldy. Moser Bland & Co. was approached by the client to simplify and demerge the corporate structure.
Moser Bland & Co. developed a strategy to reduce the number of entities from 17 to six, and to quarantine them into two distinct structures.
![](https://moserbland.com.au/wp-content/uploads/2024/05/corporate_jigsaw.webp)
The first was the trading entity structure in which six companies and three family discretionary trusts were reduced to two companies – a holding company and a trading company.
The second was an investment structure which held non trading assets, such as real estate, which comprised a simple partnership. This second structure had a very important asset protection aspect in that it ensured that valuable non-trading assets were protected against unforseen adverse business circumstances.
Confirming that the new transaction complied with all relevant tax legislation, tax rulings, stamp duty legislation and duties rulings, Moser Bland & Co. executed the transaction and implemented the new structure in a complicated process which involved:
The transaction was structured and implemented in 100% compliance with the planned strategy. The end result for the client was a significant simplification of their group structure resulting in significant savings in administration and internal and external compliance costs.