Legal entity operational readiness

International deals are notoriously complex. At close, potentially hundreds or even thousands of assets, systems, people, processes and contracts need to be transferred between numerous legal entities and across multiple borders. New legal entities frequently need to be created and must meet all local legal and regulatory requirements for the merged entity to become operational. An operational readiness plan can help this process run smoothly and ultimately help improve deal results.

Getting all legal entities up and running on Day One can be quite complex and deal-makers should be aware of the following key legal entity operational readiness considerations:

• Tax planning
• Legal entity structure
• IT Set Up
• Funding and working capital
• Employee transition and alignment
• Asset transfer pricing
• Regulatory authorization
• Vendor Management

Companies that develop an operational readiness plan early in the deal cycle should be able to improve the integration process and deal results.