Undergoing an acquisition, merger, or business spin
There are many issues that a company would face when subject to an acquisition or a business spin. Number one, the trade officer needs to think about due diligence, and did the company not only look at the past in their due diligence process in fear of successful liability, but have they also thought about the future? And will they be able to sustain -- from an operational and compliance and efficiency perspective, will they be able to sustain those controls for this new corporate structure?
So, part of what our firm does is we will sit with an organization, map out their supply chain, understand where they are the importer, where they may be the exporter, or where you may have a VAT requirement in that country, and we assist them from not only an operational perspective, but from a compliance perspective, as well as an efficiency perspective.
Top trade issues for Day O or Day 1 of a transaction
There are several issues that an executive should worry about when preparing for a day zero, a day one. Systems and how the systems on day one will be able to track information from -- for this new company. From an operations perspective, how will your new company operate? Will you have global standards?
How will you manage your people in that particular region? Do you have processes to help those people in country or in that region to move the trade function along so there are no delays on day one, and will put you -- and be in a position so you can sustain that -- that operational efficiency going forward?
Secondly, and probably more importantly, is, in many countries there are specific requirements on products. Many companies don't give a lot of thought to whether or not we can bring those products in and whether or not they are subject to an import license, an export license or additional other government agency type of requirements?
Challenges setting up a company for importing and exporting on a global basis
There are many challenges for helping a company set up from an import -- an export perspective on a global basis. The first thing to realize is, in every country the rules may be different. You may have one country where you need an inhouse executive to sign documentation. You may have another requirement in a separate country that would require a signatory be a local person in that country.
And then there's always the savings angle of setting up a company, where many companies, they focus on day one, and they don't look into how to sustain compliance and efficiency planning well into the future. It's being able to differentiate what is really necessary on day one versus what will be needed to sustain that compliance well into the future.