We have recently worked with a number of major UK businesses, to bring to economic fruition their growth and cost savings strategy by consolidating businesses through solvent liquidations. Vision, clear thinking and good decision making has delivered a fresh and lean structure formed smoothly out of a well justified acquisition.
Forbes published a blog recently on emerging trends in 2017 – organisational culture and structure was high on their list. With reason: bloated structures are creating serious legacy issues, costing time and money to maintain. From an economic point of view, the case for simplification in terms of tax benefits, reduced audit and transaction cost, IP consolidation and fewer people to do the job has been known for some time. A big four advisory firm published an opinion piece discussing it back in 2013. Whilst Accountancy Age sees us in uncharted territory, we think there are some key principles to follow, to make life and business simple:
- If the customer doesn’t understand the difference, you don’t need it
- If you can simplify the number of jurisdictions, value will be created
- Cultural value creates economic value and staff like to see things simply
- There is a process to follow. So follow it.
We’d like to think there are leaner, more agile ways of achieving savings and efficiencies but the basics remain true and solvent liquidations are a valid solution. It is the case for example that post-Brexit, we are seeing organisations looking to unwind some structures put in place to deal with the complexities of the EU. It seems clear to us that value will flow from simplicity and 2017 will be seeing more activity in this area for ReSolve.