The top 10 mistakes made during IBR restructuring projects (and how to avoid them)

January 2023

A corporate group may have many objectives in mind when it embarks on a solvent corporate restructuring, also known as an International Business Reorganisation (IBR) project. IBR projects may be undertaken to achieve operational changes, tax-optimised structures, entity rationalisation/simplification, business separation, pre-IPO tidy-ups, to accommodate changes in law or tax rules or indeed for many other reasons.

As a result, many advisors and disciplines are likely to be involved. In addition to tax and accounting input, legal support is likely to be needed from various advisory teams to support the project, not only in different jurisdictions but also in different areas of specialisation (corporate, finance, intellectual property (IP), employment, etc.).

Whilst all those involved in an IBR project strive to ensure the reorganisation proceeds smoothly, this article explores the darker side of what can go wrong and the mistakes that may haunt the unwary (particularly those who determine not to appoint advisors). Some of these mistakes entail minor hiccups and inconvenience, but others may lead to major headaches. Crucially, we also consider how such mistakes can be avoided, as those forewarned are thereby forearmed.

This publication was jointly published by PwC and Tiang & Partners.

Tiang & Partners is an independent Hong Kong law firm that closely collaborates with the global PwC network.

For further discussions, please contact Martin Robertson or Nicholas Cook at Tiang & Partners, or PwC contacts listed below.