Why rationalise?

Restructuring a corporate group will provide immediate benefits in terms of rationalisation and will simplify reporting procedures. ‘Slimming down’ corporate groups, shedding dormant and non-trading companies, removes unnecessary levels in a group hierarchy and will often result in immediate cost savings.

For example, audit fees, compliance costs and year-end consolidation exercises are all likely to become significantly simpler, saving on management time and administration work.

Where appropriate, further rationalisation and cost savings can also be achieved by amalgamating and consolidating operating centres, which may in time lead to the disposal of ‘non-core’ activities.