What's on your mind?
- Unknown contingent liabilities.
- Desire for flatter/leaner/simpler group structure.
- Complex inter-company matrix.
- UK-UK transfer pricing.
- Cost reduction.
Bringing you peace of mind
- Group streamlining aims to rationalise the group structure and eliminate redundant subsidiaries either by strike off or solvent liquidation.
- We take a three stage approach to these projects:
- Project planning: establish a methodology to identify and review redundant subsidiaries.
- Due diligence: help manage or undertake the review process and get sign off from relevant functions.
- Implementation: agree method of elimination and implement liquidations and/or strike offs.
What's in it for you?
- Financial saving of the costs of maintaining redundant subsidiaries, which can run into thousands of pounds annually. Payback can be as little as one year and the costs of a solvent liquidation can be reduced significantly where a number of companies are eliminated at the same time.
- Streamlined / simpler group structure.
- Reduced Corporate Governance risks.
- Freed up management time.
Why KPMG?
- We have a national Solvent Reconstructions and Liquidations team, dedicated to providing Group Streamlining solutions for our clients.
- We recognise there is no one size fits all and tailor our approach on these projects to suit specific needs of our clients, many of which are household names.
- On average we liquidate over 250 companies each year in the UK, returning billions of pounds of capital.
Case Study - Project Hourglass
- What was the challenge?
To simplify and rationalise the group structure of a complex, regulated financial institution.
- What did we do?
- Analysed and documented the existing and past activities of group companies.
- Challenged the reasons for their existence and developed a straw man structure for the group.
- Set the criteria for a detailed due diligence review of all subsidiaries.
- Implemented the liquidations of approximately 50 surplus companies.
- What was achieved?
- Substantial savings in compliance costs.
- An easy to understand, transparent group structure.
