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Corporate Simplification

Corporate simplification is a tool which can be effectively used to clean up a group structure, whether this involves the removal of a single company or multiple entities, in order to deliver both cost and compliance benefits.

Corporate simplification allows for greater control of risk, both in terms of security and the ability to remain compliant with constantly changing regulations. By removing unnecessary layers and complexities from a corporate structure, transparency is increased and the confidence of stakeholders is enhanced.

Tax efficiency is a critical issue when considering corporate simplification, in order to avoid generating a tax event for the company, its directors and shareholders. Our specialist team can provide advice and guidance in respect of corporate simplification and the implications thereof, and can provide the support and expertise needed to execute often complex plans.

Reasons for simplifying a corporate structure

A number of factors may trigger the need to simplify a group of companies, including:

  • Ever-increasing regulatory requirements, such as transparency of financial reporting for multiple entities within a group structure
  • Onerous management time and costs to run the structure, particularly if the individual companies operate within different industries/sectors or are non-core
  • Auditing costs and other professional fees that reduce overall profit levels unnecessarily
  • The need to better manage risks and increase security
  • The requirement for a return of capital to shareholders

Specialist advice and support

Our team of specialists can provide professional guidance on corporate simplification, and will assist with the development and execution of specific plans to simplify any corporate structure.

This could involve a relatively straightforward removal of a single company from the group, or the implementation of a more complex process incorporating a number of global entities that are no longer required.

Steps to achieving corporate simplification may include:

  • Meeting with Key Stakeholders
    To define the objectives of group simplification and to identify and plan for potential industry-specific or general issues that could arise
  • Analysis and Assessment
    Which companies within the group could be removed quickly to provide impetus for further simplification plans
  • Delivery of the Simplification Programme
    Or the provision of technical support to a pre-existing in-house team
  • Due Diligence
    With regard to highlighting any risks involved, and formulating a plan to address problems as they arise
  • Use of Solvent and Insolvent Liquidations
    To ‘de-clutter’ group structures, enable a wind down and/or a return of capital

What are the main benefits of simplifying a corporate structure?

The benefits of group simplification can be significant, both in the short-term and over a longer period of time. By identifying the profitable elements of a corporate structure we can remove any drain on resources, and allow for greater investment of time and money into those with the potential for high growth.

The main benefits include:

  • Cost reduction, including professional fees/compliance costs
  • Increased operational efficiency
  • Improved profitability
  • Release of value
  • Increased transparency
  • Greater control over risk

Case Studies

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Industries

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Contact one of our BTG Advisory specialists to discuss our services in further detail

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