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+1 747 212 0206
+44 20 3286 8868
+86 21 2052 0623Global value chain restructuring
A group might decide to re-design its value chain for many reasons: to improve reliability, efficiency, profitability, and/or risk; comply with new laws and regulations; for strategic reasons such as preparing to expand into a new region; and more.
These projects clearly have a much wider scope than those that only look at the supply chain, as the value chain also includes elements like operational processes, human capital, tax, financial, and real estate elements, among others. Some of these can be rather intangible – a company’s customer care practices, for example, or the IP inherent in its processes. But even though these things can’t be patented, and don’t appear on a balance sheet, they can still have enormous value to the group.
As always, even in very complex projects, the way to handle the legal aspects successfully is to get the basics right. Being clear about the objectives. Understanding exactly where value is currently being created in the group. Assembling the right team of people. Designing a new structure that works. Creating an effective and detailed project plan to get from the existing structure to the new one. And having the expertise to spot potential problems before they occur.
The process of moving to the new structure can be complicated. Typical considerations might be to preserve assets, and to avoid triggering new liabilities (such as pensions liabilities).
