Is your corporate structure costing you money? What actions do you have in place to reduce your corporate structure costs? Do you know what the true cost is of maintaining your corporate structure?
Our specialised team help clients improve value through advisory corporate groups to simplify their corporate structures. Value is delivered through the alignment of the corporate structure to operations, reduction of operating entities and removal of dormant entities.
Issues:
- The management costs of dealing with each dormant holding company are at a minimum 5-10k annually in maintaining
- Through acquisition or organic growth, corporate structure can become misaligned with the operational needs of the business leading to unnecessary costs and inefficiency including wasted management time
- Corporate groups are continuing to review their structures to ensure they remove any unnecessary administration costs i.e. direct or indirect
- Complex corporate structures can cause unnecessary confusion for shareholders, directors, financers, employees and other stakeholders
Benefits:
- Payback of simplification costs recovered i.e. 12-18 months
- Organisational structure which supports current business needs
- Lower administration costs
- Greater administration efficiency
- Improved transparency of corporate structure
- Streamlined information processing
- Lower decision-making costs
- Enhanced effectiveness of corporate governance
- Less opportunity for things to go wrong
