Legal entity simplification: A better approach
Merger & Acquisitions
This article features methods for approaching entity simplification challenges from a different angle.
One unintended consequence of M&A activity in recent years is unwieldy legal entity structures. In many large companies, the number of redundant legal entities can be overwhelming, and considerable internal resources (and costs) are potentially devoted to maintaining excess entities. Simplifying the legal entity structure can, however, be a challenging undertaking in itself and some companies have avoided it because of the perceived price tag.
One way to reduce the cost of transformation, and increase the likelihood of success in simplifying the structure, involves approaching the problem from a different angle.