When do you need a business split-up or breakout lawyer in California? What happens when the owners of a business wish to take part of the company and go their separate ways? What happens when a large company decides it would be more effective and profitable to divide into multiple smaller businesses. How do you manage all of the paperwork, entities, share redistributions and releases associated with a spin-off or corporate breakup?

Business Attorneys with 40+ Years of Service

The Watkins Firm has more than 40 years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California. This allows us to share critical insights into the process while helping our clients to make sound business decisions. How will the existing company be handled? What is to become of it’s shares? These transactions require an experienced business split-up or breakout lawyer. Shareholders may have concerns about preserving, protecting and/or enhancing the value of their investment and position. New entities require corporate documents, careful planning. It may be necessary to provide shares in both the old and the new corporate entities, or it may be best to develop a customized formula for share distribution as well as the determination of voting rights.

You Need an Experienced Business Split-Up or Breakout Lawyer

There are many reasons why companies and owners restructure their holdings. Restructuring a business or group of companies can often help to focus on core business objectives, or expand the value of shareholder’s positions. Breaking apart a corporate structure can make it easier to attract the right types of investment in order to pursue areas of potential growth. In other cases it can be as simple as a disagreement among business partners and/or investors regarding the direction or focus of the organization.

There are many challenges and potential risks associated with a reorganization or de-merger.  There are extensive legal and tax issues that must be considered and addressed.  How will the transition occur with minimal disruption of existing production and customer relationships?  The transition often results in strained relationships and even legal disputes as shareholders (or members) disagree with the share allocations and voting rights, division of assets, future direction and the protection of all they have worked so hard to build.

This is why you need an experienced business split-up or breakout lawyer from the Watkins Firm.  A well-planned and executed split-up, breakout or de-merger can open up new opportunities for growth and actually expand the value of shareholder positions.  The process can open the door to new investment while protecting separate divisions from the contingent liabilities of other operating groups.

We invite you to review our podcast Episode 34 – Business Formation as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.