Solicitors for Hiving Over Business Assets in Stockport & Cheshire
Amy Austin
Commercial Local Team Lead
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Hive-up and hive-down transactions are strategic tools used by businesses to reorganise their internal structures for operational, financial, or strategic purposes. By transferring assets, liabilities, or entire business units either up to the parent company (hive-up) or down to a subsidiary (hive-down), companies aim to enhance operational efficiency, manage risks, and streamline their corporate structures. These reorganisations can lead to significant cost reductions and improved control over resources.
Such transfers are also commonly employed to prepare for prospects looking into buying a business, attract investment, optimise tax positions and align assets with long-term goals. Ultimately, they help businesses strengthen their financial performance and competitiveness.
Transferring assets within a group of businesses is a specialised legal area that demands both experience and expertise. Jonathan Mounteney has been involved in many business recovery projects during:
- Almost 10 years as an in-house solicitor for Sony Group and for Co-operative Financial Services
- About 20 years in private practice advising blue-chip clients.
By Choosing Mounteney Solicitors, you will have legal support with the knowledge, qualification and experience to pilot you toward your objective of enhancing the possibility of the survival of an underlying business which is under threat.
What is the difference between ‘hiving up’ and ‘hiving down’?
There are two main types of hiving transactions, Hive Up and Hive Down. Each type serves a different purpose depending on the needs of your business and how you want to manage your assets within the group.
- A Hive Up involves transferring assets and operations from a subsidiary to its parent company, often to consolidate resources or gain direct control.
- A Hive Down transfers assets from a parent company to a subsidiary, typically to isolate risks or prepare for selling a business.
The choice between a hive up or hive down will depend on factors such as your corporate goals, tax implications and the nature of the assets being transferred. We will work closely with you to understand your unique situation and guide you through the most suitable hive over strategy, ensuring your business achieves the best possible outcome.
How Can Transferring Assets Protect Your Business from Risks?
Hiving assets can be an effective way to safeguard your business from various threats by moving assets and liabilities to protect core operations. Threats to a strong business could include:
- An employee claim
- Litigation costs
- A rogue contract
- Fraud perpetrated against the business
- Unfavourable non-core contracts (e.g. Utility supplies)
- Lease obligations
- Various cash flow issues including those arising from poor taxation planning.
It may be possible in some circumstances for business controllers to transfer their underlying business out of its existing entity into a new entity, leaving the existing business to face the contingency without that also threatening the profitable business it formerly conducted.
Fixed Fee Business Asset Transfer
Your supplier is SRA-regulated Mounteney Solicitors, that charges VAT some customers may be able to reclaim
Our normal work will be charged at a fixed fee of £600 + VAT = £720.
There is more about our fees on our website.
If you have any questions or require any further information, please don’t hesitate to Contact Us.
How Long Does this Process Take?
The process of hiving up or hiving down a business typically takes around 4 working days from the time we receive your instructions. In urgent cases, we offer special dispatch options at an additional cost to ensure a faster turnaround.
If you require a swift resolution, contact us today and we will develop the most efficient solution to hive over your business assets that will ensure your goals are met.
Contact our Business Hive Over Solicitors
If you’re considering transferring assets within a group of businesses, our expert corporate solicitors are here to guide you every step of the way. With years of experience in business restructuring, we’ll ensure a smooth and efficient process tailored to your needs.
We have offices located in Bramhall, Cheadle, Hazel Grove and Heald Green. Our solicitors in Stockport regularly act for clients across Cheshire and other areas of England and Wales.
Contact us today for personalised advice and take the first step towards securing the future of your business.