Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

Corporate Structure Simplification (CSS) eliminates unnecessary entities, manages risk and creates a leaner enterprise

Industry independent Duff & Phelps explains how CSS mitigates risk and reduces the financial burden on corporates.

Current and potential investors, finance providers, employees and other stakeholders will all value transparency and benefit from a corporate structure that is streamlined and easily explained. This is according to Eddie Bines, Director at Duff & Phelps, the global advisor that protects, restores and maximises value for clients.

Bines commented: “It’s not uncommon for an organisation to have hundreds of companies in its structure. Even when these companies no longer serve an obvious purpose, groups often retain them, leaving them “as-is” rather than toying with the status quo.”

“Keeping such entities can be costly, risky (for the corporate itself and directors personally) and can hamper the implementation of other strategic initiatives. Consequently, streamlining the corporate structure is not something to continually postpone but to tackle head-on in the near-term, either on its own or as a component of wider strategic transformation/reorganisation initiatives,” Bines added.

Considering recent accounting controversies and the review of the audit industry by the Competition and Markets Authority (CMA), large and mid-market corporates are increasingly seeking complete independence from their service providers. Duff & Phelps is therefore ideally placed to assist organisations in this regard with its CSS offering.

Duff & Phelps’ CSS service is an independent rationalisation process designed to promote good corporate governance as well as release capital, increase corporate efficiency and reduce the financial and administrative burden faced by many businesses.

Bines continued: “We estimate that the average dormant entity costs approximately £10,000 per annum in direct and indirect costs to maintain, while an active one can cost upward of £100,000 as a result of the costs associated with the tax compliance, audit and company secretarial burden as well as other time-consuming administrative tasks associated with accounting, compliance and regulatory reporting.”

“But it is not just about cost. Our rationalisation process is designed to streamline a business, reduce inherent risk in maintaining the current entity structure and improve its attractiveness to potential buyers and investment groups,” Bines said.

Duff & Phelps’ CSS service – applicable to all types of businesses, whether owner-managed, national or international – is designed to achieve simplicity in an accounting, legal and regulatory environment that is increasingly challenging to navigate, and is tailored to suit the long-term needs of the business’ requirements, using restructuring techniques to produce the optimal outcome. A highly collaborative approach, the CSS service involves a four-step process, working alongside management and other stakeholders to formulate an optimal group structure for the business before undertaking due diligence, resolving issues and ultimately eliminating entities.

Bines further added: “Duff & Phelps has worked alongside numerous clients on CSS initiatives, from mid-market to large corporates. A properly planned, resourced and independent CSS initiative can deliver a wide-range of sometimes-unexpected benefits for your organisation. The trick is then to ensure that those benefits are sustained through making CSS business as usual, thereby facilitating long-term entity management.”