In the lifespan of a typical business, companies often start as single entities, focusing on one primary product or service. As they grow, they may diversify into additional ventures, which start as small units managed within the existing corporate structure to minimise administrative costs and complexity. However, as businesses expand, they often reach a point where their operations, financial performance, and market conditions make it essential and beneficial (from a tax and growth perspective) for stakeholders to demerge them into separate legal structures.

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