Global value realignment – Recognizing and pursuing tax opportunities in an ever-challenging environment
Global value alignment (GVA) is an approach to managing cash flow with a focus on improving a company’s global tax and treasury profile. It involves aligning an organization’s business, treasury and tax objectives, and then taking a holistic approach to global tax planning by focusing on the organization’s value drivers, operating model, earnings mix and treasury needs.
GVA is especially valuable in today ‘s environment because it can help companies address changing business models in response to today’s economy, the Obama administration’s tax proposals and the global business transformation that has occurred during the last few years.
GVA recognizes that although functional realignment requires many considerations, prudent tax planning can play an important role in helping increased operating margins stay with the company rather than go to tax authorities. In this M&A Insights article, we discuss the need for GVA, GVA’s components and benefits and the types of companies that might take advantage of it.