Business Restructuring: strategies for the year ahead

Date: January 23, 2026

Business restructuring has become a central consideration for UK companies. Continued economic pressure, evolving tax legislation and heightened scrutiny on operational efficiency have made structural review essential rather than optional.

For owner-managed businesses, groups and growing enterprises, reorganising is no longer limited to financial recovery. It is increasingly used as a forward-looking strategy to improve profitability, strengthen governance and protect long-term value.

At Alexander & Co, business restructuring is approached as a commercial exercise underpinned by financial clarity, tax awareness and long-term planning.

Why UK Businesses Are Restructuring

Several structural and economic factors are influencing business reorganisation decisions this year:

Sustained borrowing costs, affecting cash flow and refinancing strategies
Pressure on margins, driven by labour, energy and supplier costs
Changes to tax reliefs, including capital gains planning and inheritance-related business reliefs
Greater demand for transparency from investors, lenders and stakeholders
Preparation for sale, succession or investment, requiring cleaner, more efficient structures

Businesses that delay this often find themselves reacting to challenges rather than shaping outcomes.

What this Means in Practice

Effective restructuring goes well beyond cost reduction. It involves reviewing how a business is owned, financed, managed and operated, ensuring that each element supports the wider commercial strategy.

Operational Restructuring

Operational restructuring focuses on how the business functions day-to-day. This may include:

Removing duplicated roles or processes
Realigning teams with revenue-generating activities
Improving cash flow management and working capital efficiency
Reviewing supplier contracts and overhead structures

The objective is to create a leaner, more resilient operating model without undermining service quality or growth potential.

Corporate and Group Restructuring

Many UK businesses operate within group or multi-entity structures that have evolved over time. In 2026, reviewing these arrangements is increasingly important to ensure they remain commercially justified and tax-efficient.

Introducing or reorganising holding companies
Separating trading and property activities
Simplifying group structures to reduce risk and administrative burden
Preparing the business for investment, disposal or succession

A well-designed corporate structure can enhance protection, clarity and flexibility.

Tax-Focused Restructuring and Planning Considerations

Tax remains a key driver behind many restructuring decisions. Legislative changes and increased scrutiny mean that historic structures may no longer deliver the intended advantages.

Align group structures with current tax legislation
Preserve access to available reliefs where possible
Reduce exposure to future capital gains or inheritance tax liabilities
Support compliant profit extraction strategies

Tax-led restructuring must be approached carefully, ensuring commercial substance underpins every decision.

Financial Restructuring and Cash Flow Stability

For some businesses, restructuring is driven by the need to stabilise finances rather than expand. Financial restructuring may include:

Refinancing or renegotiating lending facilities
Improving debtor management and payment cycles
Addressing historic balance sheet weaknesses
Supporting lender negotiations with robust forecasts and reporting

Clear financial information and credible planning are essential in these scenarios.

Restructuring for Succession, Sale or Investment

This is often a prerequisite for strategic change. Businesses preparing for:

Management buy-outs or buy-ins
External investment
Partial or full sale
Family succession or generational transfer

Benefit from early restructuring that improves clarity, reduces risk and enhances value. A structured business is easier to explain, easier to value and easier to transfer.

The Benefits of being Proactive

When approached strategically, restructuring can deliver measurable benefits, including:

Improved profitability and cost control
Enhanced tax efficiency
Stronger governance and risk management
Greater investor and lender confidence
Increased long-term business value

For many organisations 2026 will be a defining step in securing stability and future growth.

How Alexander & Co Supports your Business

Alexander & Co, an award winning, ICAEW regulated firm, provides practical, commercially focused business restructuring advice to UK companies across a range of sectors. Support includes:

Strategic restructuring reviews
Corporate and group reorganisation
Tax-efficient restructuring planning
Financial modelling and forecasting
Succession and exit preparation

By combining technical expertise with real-world commercial insight, Alexander & Co helps businesses implement restructuring plans that are workable, compliant and aligned with long-term objectives.

Start your next year with a Clear Strategy from Alexander & Co

The start of the year is an ideal time to review your business structure and identify areas for improvement. Early planning creates options, protects value and positions your business for the opportunities ahead.

Contact Alexander & Co for specialist advice on business restructuring in 2026, tailored to your organisation.

Phone: 0161 832 4841 or 0207 1670 7220

Email: info@alexander.co.uk

Website: www.alexander.co.uk

You can also use the contact forms on this page. Our offices are conveniently located in Manchester and London, serving clients across the UK.