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  • Caius Tax Management

Legal Entity Rationalization (LER)

While some companies and sectors have been battered by the coronavirus crisis, on the whole, M&A activity in Europe has remained surprisingly steady in the first half of the year, as investors completed €563.6 billion worth of European mergers and acquisitions from January to June, 2020.

In the aftermath of the transaction companies find themselves often in the middle of complex multiple legal entities structure, facing operational challenges and increasing tax and regulatory risk and expenses.

Companies seeking to cut expenses and to create a more efficient organizational structure are taking a closer look at the potential benefits and risks of legal entity rationalization (LER). A successful LER initiative requires a well-organized and detailed plan and collaboration with operational leaders, and with legal, human relations, IT, finance, and tax team. Get to know our tailored approach to LER under the transitional section of this website.