United Kingdom

Group Streamlining 

Eliminates dormant, non-trading or other redundant group companies.

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.
 

Contact

Mickey Tappin

Mickey Tappin

Senior Manager

KPMG in the UK

 

020 7694 3027

Email Mickey

 

Chartered Secretary: The ICSA magazine: Jeremy Spratt, Head of KPMG LLP’s Solvent Reconstructions and Liquidations team in the UK, looks at the causes of an unwieldy company structure and the benefits of restructuring.