BUSINESS GROUPS AND HOLDING COMPANIES
Advice for the restructuring of business groups and the creation of holding companies to optimize their operations and their succession protocol
At IBERIANGEST SLP we are specialists in advising holding companies, and we provide these organizations with a portfolio of services that includes everything from support for the formation itself, to everything necessary to contribute to their optimal internal organization and their consolidation both tax and accounting.
Forming a group that brings together different businesses in the same organization can be a highly recommended solution, for example, when there are business activities of a very diverse nature that you want to group in the same brand to stand out in the market, you want to achieve the optimal size to be able to opt for public tenders or adapt the internal structure to improve the marketing of products. services or solutions.
In addition to all this, there are also tax reasons, given their advantages for tax purposes, although these are not admitted by themselves for the Administration to authorize the creation of a holding company, and one of the reasons set out above must be adduced.
Why have experts in advising holding companies?
A specialized service in advising groups of companies is the most viable option to be able to enjoy all the benefits offered by this type of business organization, and also to do so with all the guarantees of legislative adequacy, that an optimal structural transformation of the organization is carried out, and that it is as efficient as possible with a view to business objectives.
From this point of view, at IBERIANGEST SLP we advise holding companies of all types, whether they bring together businesses from different sectors; or from the same industry or market area, in what are called oriented holdings.
We also have accumulated a lot of experience in advising family business holdings, which were originally manageable businesses with simpler business structures, but which need this new configuration due to their growth and diversification. Or, by an acquisition by external capital.
In addition, we offer support at any stage in which the family holding company is located, whether it is already operational, or if the entire transformation process has to be undertaken, being able to contribute here all our accumulated know-how by articulating succession processes in different realities of family businesses.
Advice for holding companies of any type
Likewise, we have a lot of experience advising holdings of the two main modalities that exist from an organizational point of view:
Vertical or subordinate: in which one of the companies takes precedence over the others, for decision-making and control purposes, either directly or indirectly.
Horizontal or coordinated: there is no dominant company over the rest, as they do not participate, the common link being the presence of shared partners or administrators.
In both cases, we focus our advice on holding companies to take advantage of all the potential that this corporate structuring offers:
1-Tax benefits
The tax benefits of groups of companies can have an impact on up to three different tax figures:
Corporate Income Tax deductions: all the participants of the holding company can access the tax deductions contemplated in this tax, despite the fact that some of the companies are in losses, something that does not happen when we talk about individual companies. Thus, the grouping promotes compliance with the requirements, and the consequent obtaining of deductions. either through investments in R+D+i, through the promotion of certain cultural activities or the hiring of workers with disabilities.
Exemptions from Wealth Tax: when the holder of shares in active holdings exercises managerial functions, the shares may be exempt from the application of Wealth Tax.
Reductions in Inheritance and Gift Tax: these would only be applicable to heirs who replace the legal position of the deceased, in which case the taxable base of the tax could be reduced by between 95 and 99%, depending on the Autonomous Community in which the holding company is registered.
2-Economic advantages
A holding structure favors the group deployment of economies of scale, in order to increase productivity without increasing capital investments or hiring personnel. In addition, the unified management of all companies makes it possible to optimize in all areas, avoid duplication and save unnecessary expenses.
3-Creation of mutual synergies in all the companies of the holding company
Likewise, the holding company ensures that the growth of one of the companies can have a positive impact on the others, so that the expansion process of one of the parts is taken advantage of so that the whole thing benefits.
4-Compensation of losses
Holding companies make it feasible for the hypothetical losses in a financial year of one or more of the companies that make them up to be compensated by the company, with the consequent improvement in liquidity, the possibility of deferring payments to the Public Treasury, etc.
Advice on the restructuring of groups of companies
As experts in holdings, we can offer advice for the restructuring of groups of companies that is fully adapted to the needs of each company. Always with a view to forming the most convenient corporate fabric in each case, whether vertical, horizontal, for family holdings, etc.
In addition, as consultants specialized in business organization, we also provide guidance on how to structure organizations to make them much more functional, efficient, thrifty and profitable. To do this, we can carry out audits at all levels to detect aspects to improve, or draw up fully tailored strategic plans.
Advice on the restructuring of groups of companies
Likewise, we cover everything related to advising on the consolidation of companies belonging to the same group in the different areas:
Accounting and commercial consolidation
VAT tax consolidation
Consolidation of Corporate Income Tax
As far as accounts are concerned, we cover the entire scope of accounting consolidation, whether they are parent companies and subsidiaries, larger parent companies (subject to consolidation) in subgroups of companies, multi-group companies, special purpose companies, etc.
With all this, we help to present to administrations and financial institutions a consolidated image from the patrimonial, economic and financial point of view; with the mandatory annual accounts, income statements, balance sheets, annual reports, management reports, cash flow, consolidated equity, etc.
Referents for advising holding companies
For all these reasons, IBERIANGEST SLP is a reference consultancy for holding companies that need to receive the specific advice they require. To provide this, we have an excellent multidisciplinary team of professionals, who have extensive experience working with countless companies of this nature.