Dyke Yaxley, a member of The Corporate Finance Network with two offices in Shropshire and one in the United States, has advised two shareholders of a large plumbing business on its demerger.Laurie Riley, Managing Director of Dyke Yaxley was approached by their longstanding plumber contractor clients to initiate a strategic review of the business. Laurie and the Corporate Finance team at Dyke Yaxley, began by creating options for the shareholders, one of which was to split the two distinct services offered by the business into two new companies.
The clients agreed to the demerger option. Dyke Yaxley advised on all aspects of the deal, including taxation advice, negotiating the split of assets & liabilities and liaising with solicitors regarding the legal agreements.
The result is there are two clearly defined businesses with their own respective value propositions, both of which are continuing their success as new companies.