Many companies from large multinationals to entrepreneurial businesses are choosing to relocate part or all of their operations to new territories. There are a number of cost and commercial reasons why a group may consider relocating, but it is also important to understand the consequences.
The key to successful business relocation is early planning, clear commercial objectives and careful execution. Our relocation guide provides pragmatic advice for executives, including outlining the drivers of relocation, the types of activity commonly relocated and the commercial, cost and tax factors of popular relocation destinations.
As your business seeks out new markets for growth and looks at how it can best manage tax, operational and compliance costs, the rationale for restructuring and/or relocating at least some of your assets and operations can only increase.
- Model your supply chain and identify key value drivers. This will help you identify areas where relocation/restructuring could add value.
- Determine which functions and assets could, should or should not be relocated, and assess possible locations.
- Undertake feasibility and cost-benefit analyses. This shouldn’t just look at the costs, but also any potential reputational issues.
The choices that emerge from these evaluations may prove very different from what you originally envisaged.
While these assessments are likely to identify a number of challenges, most can be managed with the right structuring and planning. What you cannot afford to do is simply consign relocation to the ‘too difficult pile’ as you could lose out to competitors as a result.
Grant Thornton member firms around the world have significant experience in advising clients on how their businesses can benefit from relocation. The highest profile cases involve full corporate migrations or inversions – the head office and holding company structure transferring to a new jurisdiction.
However the options are numerous and the right answer may be much simpler, from setting up a regional hub to offshoring support services.
We hope you will find this guide useful in assessing whether business relocation is right for you. If you would like to discuss the next steps please contact your own Grant Thornton adviser or one of the Grant Thornton contacts listed.