Video:

Restructuring and merging: Partnership Vs Company

Author: Giles Murphy, James Kirk (yBC.tv)

Categories: Mergers
Tags: company, partnerships, profit
The process of restructuring and merging will vary depending on if you are a partnership or a company . Giles Murphy of Smith & Williamson explains further in this TV show.

Impact of restructuring and merging

In some ways there should be no difference. If you’re a people business, whether you’re structured as a company or a partnership shouldn’t have that much of an impact. However, there are various idiosyncrasies of a partnership which mean that the partners are both owners and the workers within the organisation. So in terms of engaging with that group, you are talking to both the shareholder and the employees in one go. The key one in any professional practice will be the comparable levels of profitability because in practice it’s going to be very difficult to get the higher profit firm to engage with a lower profit firm and to encourage them that actually by adding them together everyone will be better off. So the starting point would also always be to look at the comparable levels of profitability.

There are more TV shows discussing restructuring and merging by Giles Murphy on Inside Finance.


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