Simplifying your corporate structure
Group structures can become increasingly complex through acquisitions, mergers, joint ventures and organic growth. This can lead to increased costs, as well as difficulties managing risk, simplifying operations, improving transparency, and complying with changing regulation.
Benefits of simplifying your group structure
- Reduced compliance costs
- Capital and cash efficiencies
- Optimisation of distribution streams and removal of dividend blocks
- Rationalisation of inter-company balances, which unlocks capital and tax losses trapped in legacy structures
- A simpler group structure that maximises the efficiency of your operating model
- Improved transparency and corporate governance
- Greater control and risk management
- Enhanced board and investor perception
- Addressing the lack of “corporate memory” around unknown contingent and legacy liabilities
- Reduced management time spent on non-operating entities
How we can help
We have experience supporting the complete spectrum of organisations, whether large multi-national companies seeking to reduce their global entity footprint, or a small domestic organisation looking to remove a single entity from their structure for a specific purpose. Our team integrates restructuring, tax and financial advisory knowledge to help organisations assess, rationalise and simplify their legal entity structure across the following key phases of corporate simplification:
- Set up: A critical part of successful corporate simplification is to define objectives and governance from the outset. We support clients to initiate their internal set up including facilitating a workshop with key stakeholders in which we share lessons learned and best practices from our deep and varied experience.
- Group complexity analysis: We can undertake a desk top analysis of a legal entity structure to provide advice and recommendations on which entities in the group could be eliminated and identify ‘quick wins’ to generate momentum.
- Programme management: We have a flexible approach to supporting programme delivery, ranging from taking full control and responsibility for running the programme to supporting internal programme management resource with technical expertise only.
- Due diligence and issue resolution: We deliver a bespoke questionnaire to facilitate the collation of entity information. We use our extensive experience to identify potential risks and to provide commercial, pragmatic advice and best practice solutions to resolve identified issues. As a multi-discipline firm, we can draw on subject matter experts across all sectors, technical disciplines and geographies to quickly and efficiently respond to any additional support our clients may require through the life of the programme.
- Entity eliminations: We have experienced Licenced Insolvency Practitioners in the UK who act as Liquidators to facilitate the elimination of entities with access to our international network of solvent liquidation specialists for eliminations in other jurisdictions.