We provide professional assistance with the restructuring of Estonian companies through a demerger, including situations where part of an existing company’s assets is transferred to a newly established holding company.
The service is suitable, for example, where the owners wish to separate shareholdings in subsidiaries or other investments from the operating business while keeping the existing company in operation. In an extraction-type demerger, selected assets and related liabilities are transferred to the acquiring company in accordance with the demerger plan. The transfer becomes effective upon registration of the demerger in the Estonian Commercial Register.
Our service can include:
review of the planned demerger from an accounting and financial perspective;
preparation of the accounting structure and values of assets and liabilities to be transferred;
assistance with the opening balance sheet of the newly established company;
coordination of accounting matters with the notary, management and other advisers;
accounting entries related to the demerger in both the transferring and acquiring companies;
assistance with the financial documentation required for registration and subsequent accounting.
The service is particularly useful when establishing a holding company through a demerger and transferring existing subsidiary shareholdings to it. The legal documentation is prepared in cooperation with a notary, while our role focuses primarily on ensuring that the financial and accounting treatment of the transaction is properly planned, documented and implemented.
The service fee is determined based on the circumstances and by agreement.