Business Model Optimization |
The alignment of a multinational company’s operating model and its global tax planning enhances the opportunity for value creation. But that’s no easy task. Each must adapt to satisfy the demands of the other. Business Model Optimization (BMO) is the process of pursuing this balance and integrating the operating model and global tax planning into the way a business operates. The two do not operate independently of each other. One must carefully balance business needs with tax requirements and opportunities.
In this evolving economic environment, it is always a good time to review your global business model, “How can you create value by pursuing new market share, transforming your value chain, and gaining greater economies of scale?” Some of the ways to create value in an organization include:
- Undertaking operational initiatives to pursue revenue and margin growth
- Evaluating rationalization of the supply chain
- Integrating acquisitions with existing structures
- Centralizing management and/or intellectual property (IP), regionally or globally
As you evaluate these and other types of business transformations, are you considering all of the relevant factors that may help build value within your organization?
Click to enlarge our BMO pyramid infographic
When making decisions related to tax opportunities, the business strategy makes up the framework within which tax opportunities exist. Tax planning not based on business operations can diminish the bottom line, while a business model that does not consider tax may abdicate much of its profit. The result of aligning these two is a more efficient business model with sustainable and scalable tax savings.
As organizations look to pursue new markets, gain greater economies of scale, and contain costs, BMO helps to explore important factors, including a range of value creation opportunities and the associated tax opportunities and risk. BMO helps multinational companies integrate their operational and tax planning in a scalable and sustainable manner to help business leaders make more effective decisions on an after-tax basis. BMO is all about creating value through business transformation of a multinational’s supply chain and/or intellectual property (IP).
We have more than 500 dedicated BMO specialists who are experienced with the complexities of implementing new business models and aligning the tax and operating strategy for multinational companies. Our integrated multidisciplinary team includes specialists in business transformation, information technology (IT), human resources, international tax and transfer pricing, global customs and trade and Value Added Taxes, and project and change management. This dedicated cross-competency, cross-regional team has extensive “been there, done that” experience in aligning tax planning and business models, intellectual property leading practices, and global tax and treasury planning. Our team provides high quality, customized tax and business model transformation services in an efficient manner through the use of a proven methodology.
Using our established and proven methodologies and tools, our BMO team focuses on the following elements or work streams:
- Realigning for business transformation
- Reconfiguring IT systems
- Readying Human Resources
- Reorganizing legal, finance, and tax structures
Business Model Optimization
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