Abstract
To reduce costs, a global manufacturing client wanted to centralize key European business processes—a so-called “HubCo” strategy. The solution needed to accommodate specific resource requirements and establish an effective selection process to determine the most suitable location for the centralized operations.
The Challenge
Tax strategy was a primary concern since any geographic shift would result in significant tax consequences. Additionally, the effect consolidation would have on various stakeholders within the company had to be taken into account.
How We Helped
Because tax considerations were a very significant component of this process, Deloitte Consulting LLP incorporated Deloitte Tax LLP professionals into their team early on in the assignment. They also maintained close collaboration with appropriate members of our relevant business process teams.
Throughout the project, this integrated team worked to identify and account for key business intangibles and value-drivers, including particular customer relationships as well as access to manufacturing know-how, that would play important roles in this broad initiative.
Lessons Learned
Our collaborative effort ensured that the team understood and appreciated the full range of the transformation and augmented client proposals with other cross-functional opportunities.
Ultimately, the client chose to move forward with the expanded European business model set forth in our proposal.