Capital Distribution

It is our skill and experience in managing the wind down of business entities that uniquely qualifies us to assist clients with their solvent exit strategies in a tax efficient manner.

Swan O Sullivan can draw on the significant experience of our professional team to provide a specialist services to solvent companies.

  • Solvent Liquidation
  • Exit Management Strategies

Solvent Liquidation

Our experienced professional team provides a specialist solvent liquidation service covering the following key areas:

  • Special purpose investment vehicles & IFSC companies
  • Tax driven solutions
  • Managing the wind down of a business, leading to a members' voluntary liquidation
  • We can also draw on the vast experience of Ireland's leading law firms and tax specialists with whom we have executed a vast array of assignments

A Solvent Liquidation can be used:

  • To secure the orderly wind up of a company
  • By shareholders wishing to unlock their capital
  • To close down a subsidiary, within a group of companies, which has outlived its usefulness

The process is instigated by the Directors and the Liquidator is appointed by the members. The process is known as a Members' Voluntary Liquidation. A Members' Voluntary Liquidation requires a Statutory Declaration of Solvency which states the Directors have conducted a full enquiry into the company affairs and that they are of the opinion that the company is in a position to repay its debts, with interest, within a 12 month period. The liquidator realises the company assets, settles any creditor claims and distributes the remaining funds to the shareholders. Such distributions are deemed to be charged at capital gains tax rates in the hands of the shareholders as opposed to distributions to shareholders outside of liquidation, which are deemed as income in the hands of the shareholder and therefore liable to income tax.

Exit Management Strategies

Exiting from non-core and underperforming business units can be legally complex and time consuming for senior management. This complicated subject can involve many specialist areas, including:

  • Negotiation with trade unions
  • Dealing with property and chattel agents
  • Handling of redundancies
  • Knowledge of insolvency and company legislation
  • Business valuations
  • Maximising business value prior to sale
  • Tax implications
  • Negotiation with creditors
  • Preparation of information memoranda
  • Control of sale process
  • Sale negotiation

With our extensive experience of dealing with underperforming businesses we are well qualified to assist management wishing to divest themselves of these businesses in an efficient manner, at the same time removing a significant burden from them at a time when they wish to focus on their core business.

Swan O Sullivan is ideally positioned to execute effective divestment strategies by drawing upon our vastly experienced team of professionals.