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Country Exit

Country Exit

A restructuring solution that supports clients to exit certain countries that may be underperforming or non-core to an organisation’s strategic direction.

Navigating Complexity

Enhance strategic focus and mitigate risks through Country Exit

Why should my organisation consider a Country Exit?

Country exits usually follow a strategic decision to exit non-core/ underperforming/ unsupported geographies. Often this follows M&A activity where a group has acquired “baggage trade” (non-core) as an unwanted bi-product of an acquisition, or elsewhere a change in either the business or the geopolitical situation makes operating in a jurisdiction no longer viable.  Often, where a country is suitable for exiting, there will be people, contracts, suppliers, leases etc. to be exited or moved to an alternative jurisdiction.

A country exit does not mean that global contracts, or those that specify the need for delivery in a particular country, cannot be serviced. The use of sub-contractors or resource in neighbouring countries can be utilised to fulfil obligations to clients without the need for a legal entity presence or feet on the ground in country.

Considering other options and executing a strategy correctly can bring substantial cost savings and alleviate other external pressures without comprising client delivery.

How do we deliver our Country Exit services?

Country exits require very similar activities to managed wind-down, with the added considerations around the tax impact of transferring assets cross-border and/ or closure and liquidation vs merger and integration.  Our technical read “Country Exits” looks at Country Exit as a Restructuring solution in more detail.  In summary, Country Exit activity usually includes:

  • transferring (either internally or via an external sale) and/ or disposing of assets
  • exiting leases – in some cases, this may require new short term registered office addresses to be moved to a relevant in-country service provider
  • transferring business (customer contracts, etc.) cross-border and/ or running-off local business in line with contractual terms
  • resolving employee issues – this may include redundancy in line with statutory processes and/or the use of third party employing entities (“staffing firms”)
  • closing out debtor and creditor positions, including the resolution of residual tax issues

JC supports clients in the design, planning and execution of Country Exit activity through the provision of a team of dedicated restructuring advisors and project management specialists who work with your internal team and third party advisors to maximise the value and minimise the costs associated with exit.  We have experience coordinating country exit/ restructuring activity in 60+ geographies.

We often embed ourselves in our clients’ teams to take on the country exit burden, providing restructuring advisory, project management, finance and operational support and coordinating tax and legal input through our extensive global network.  We are a “one-stop-shop” solution for our clients.

Country Exits demand a multitude of skills; Restructuring expertise is of course fundamental, but diplomacy with employees and customers and an understanding and respect of local laws and nuances will determine success.

Cameron Holloway, Managing Director, JC Consulting Partners

For more information on our services
please get in touch

How do we deliver our Country Exit services?

Country exits require very similar activities to managed wind-down, with the added considerations around the tax impact of transferring assets cross-border and/ or closure and liquidation vs merger and integration.  Our technical read “Country Exits” looks at Country Exit as a Restructuring solution in more detail.  In summary, Country Exit activity usually includes:

  • transferring (either internally or via an external sale) and/ or disposing of assets
  • exiting leases – in some cases, this may require new short term registered office addresses to be moved to a relevant in-country service provider
  • transferring business (customer contracts, etc.) cross-border and/ or running-off local business in line with contractual terms
  • resolving employee issues – this may include redundancy in line with statutory processes and/or the use of third party employing entities (“staffing firms”)
  • closing out debtor and creditor positions, including the resolution of residual tax issues

JC supports clients in the design, planning and execution of Country Exit activity through the provision of a team of dedicated restructuring advisors and project management specialists who work with your internal team and third party advisors to maximise the value and minimise the costs associated with exit.  We have experience coordinating country exit/ restructuring activity in 60+ geographies.

We often embed ourselves in our clients’ teams to take on the country exit burden, providing restructuring advisory, project management, finance and operational support and coordinating tax and legal input through our extensive global network.  We are a “one-stop-shop” solution for our clients.

Country Exits demand a multitude of skills; Restructuring expertise is of course fundamental, but diplomacy with employees and customers and an understanding and respect of local laws and nuances will determine success.

Cameron Holloway, Managing Director, JC Consulting Partners

For more information on our services please get in touch

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