Operational Companies: Case Study

Merger of two entities of an international group

The issue

An international group organized its Luxembourg activities through two entities, which developed different know-how and cultures. It has been decided to merge these entities in order to create economies of scales, to promote group spirit and to optimize the tax efficiency.

Our approach

A merger requires administrative, accounting or tax work but it also has consequences in departments such as human resources, IT, facility management or finance.

We took an active part in the whole merger process and acted as coordinator of the project and technical advisor.

Our first assignment covered the preliminary analysis of the feasibility of the transaction and its tax impacts. This phase helped us to recommend the best way to organize the process in order to limit administrative work, tools and organizational changes.

Together with staff members of both entities, we then inventoried the actions and all potential issues of the merger process and the new structure.

We finally assisted the group in the implementation (business license, new accounting system, etc).

The outcome

The merger is now effective and all objectives of the restructuring have been met:

• Integration of production tools and staff
• Integration of administrative organization
• Definition of common goals in order to create a new and unique culture
• Definition of a tax efficient structure