Is your current corporate structure adding more cost than value?
With each acquisition or formation of a new entity, complexity and costs increase.
Successful companies tend to grow, not shrink. But with each acquisition or formation of a new entity, complexity and costs increase.
Many organizations are now looking for ways to reduce operating costs, contain cash expenditures and improve their tax positions. Companies may be able to achieve these goals by reducing and realigning legal entities through a legal entity rationalization (LER) project.
LER can help you evaluate whether the current legal entity structure is adding more cost than value and help you determine the desired organization structure. If entity reduction is desired, LER can also help you develop a clear plan to streamline your legal entity structure without materially affecting ongoing operations.
The key components of an LER involve:
Using a phased approach—along with proper risk management and leading practices—an LER project may increase efficiency and reduce overhead. It may also eliminate or consolidate nonessential entities, increase transparency of financial reporting, reduce costs associated with tax filings and improve the tax efficiency of the legal entity structure.
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.