Legal Entity Reduction

Legal Entity Reduction

When it comes to eliminating companies, what are the options and what steps need to be taken?


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Legal Entity Reduction


Group structures, particularly those which have been subject to multiple acquisitions, are frequently unnecessarily complex, include a plethora of non-trading entities and have complicated and inefficient intercompany debt arrangements.

This drains group resources both financially and operationally. Simplifying the group structure by eliminating redundant and surplus entities can:

  • promote a marketable group structure; 
  • free up resource to focus on business critical issues; 
  • reduce the risk of non-compliance with legal obligations; and 
  • significantly reduce maintenance costs. 

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