Bringing Order To Chaos – Why Groups Benefit From Entity Simplification

Our economy has seen better days. We've all heard the talk of "unprecedented circumstances" and "tough economic headwinds." We are finding that businesses are using these circumstances as an opportunity to review their operations and proactively looking for ways to simplify their businesses.

Entities Upon Entities

"Simplicity is the ultimate sophistication" is a famous quote by Leonardo da Vinci that I came across recently. It made me think that I'm not sure that many large corporates abide by this tenet. There's a tendency to complicate things by creating more legal entities even when they are not needed.

Corporations tend to form these entities to meet specific operational or financial objectives or to optimize their tax position, or they are inherited through M&A activity. While they don't set out to make things complicated, these entities can proliferate like knotweed and, like with knotweed, elimination requires determination. The longer you leave it, the