Corporate simplification

We assist organisations that need to reduce operating costs and achieve a simplified more transparent corporate structure by dissolving inactive companies that have fulfilled their economic purpose.  

PwC’s dedicated team of specialists can provide initial advice on the different methods of dissolution, the associated risks to the directors and the group, how best to plan for this type of project and how to avoid the common pitfalls.

Increasingly, clients instruct us to restrict our initial involvement to a preliminary review of the target companies to assist management select the most appropriate method of dissolution. The review also identifies issues that need to be addressed prior to dissolution, and determines the specific allocation of responsibilities for resolving these. We tailor our involvement to match your specific needs and resources.

• We are the only UK practice with national coverage and spend 100% of our time on corporate simplification assignments
• We do more solvent liquidations than any other UK practice, liquidating on average more than one company for each working day
• In the last four years we have distributed over £30 billion of capital and worked for over 20% of the FTSE 100

How we can support you
More about this service

Potential issues

• Holding costs, typically between £3,000 to £5,000, are spent each year by management dealing with each dormant or redundant entity
• Senior management time is wasted dealing with the corporate governance requirements of inactive entities instead of live business issues
• A large number of empty companies are present as part of the corporate structure, with no apparent purpose which can raise concerns amongst stakeholders and regulators
• Recent mergers and acquisitions activity has led to restructuring and the presence of dormant companies
• Corporate structure needs to be simplified to release capital tied up in the business

How we can support you

• Help eliminate recurring and wasted corporate governance expenditure
• Reduce the risk of perceived corporate governance failures
• Free up senior management time spent dealing with corporate governance issues
• Costs typically recovered within 12 - 15 months where multiples of companies are being eliminated simultaneously

Our technical excellence and proven project management methodology ensure a smooth process for your organisation through to conclusion.