Uncover significant bottom-line benefits with incentives

Government officials and policymakers around the world spend billions on economic development incentives. The goal is to attract companies that will create jobs, encourage innovation, improve sustainability, and increase economic investment in the community. The incentives for businesses can come in the form of cash, grants, property tax abatements, credits, and tax exemptions.

Leveraging favorable economic incentives enable companies to execute on strategic priorities such as transformation, major transactions, and introduce new lines of business or products via increased cash flow.

Alvarez & Marsal’s (A&M’s) Global Business Incentives solution helps clients with identifying and negotiating credits and incentives designed to improve performance, focus on areas of investment and attract new talent. 

Companies often leave economic incentives as an afterthought, missing out on the benefits. A&M can assist clients with:

• Prioritizing credits and incentives during strategic planning by highlighting options
• Reviewing critical operational issues
• Assessing supply-chain 
• Benchmarking, and more 

Marketplace trends such as new technologies and ESG considerations, are influencing businesses and have stimulated interest in credits and incentives across all sectors and industries. The Global Business Incentives team uses its experience to secure credits, negotiate incentives and gain discretionary benefits on behalf of clients.

What Value can Incentives Drive for your Organization?

Below are some typical incentives companies can pursue:

• Cash benefits: These can be in the form of direct grants, forgivable loans, refunds. 
• Workforce development: Companies can benefit from withholding refunds and training grants to increase profitability and productivity. Government programs can help facilitate talent acquisition as well.
• Infrastructure optimization: These grants and in-kind infrastructure improvements or build out are offered through governments and utilities. 
• Property and land tax incentives: Companies can receive property tax exemptions, abatements, and favorable property tax valuations. 
• Tax incentives: Governments offer an array of tax benefits, including tax holidays and reduced tax rates, investment, job and research & development (R&D) tax credits.
• Sustainability: Tax deductions, credits and rebates are available for investments in renewable and energy efficiencies.
• Trade and Customs: Companies can secure duty exemptions and applicable free trade agreements. 
• Indirect, Value-Added Taxes (VAT) incentives: These may be in the form of indirect tax exemptions, refunds, VAT exemptions and VAT financial incentives on imported equipment.

How Should Incentives Fit into your Upcoming Plans?

No matter where you are in your business’s lifecycle, A&M can help you evaluate, identify, and negotiate state, local and regional economic development incentives. 

Does Your Three-to-Five-Year Plan Include Expansion, Increased Hiring, Training or Capital Investment? 

We can maximize and broaden the value of business improvements, investment spending, and transformation via credits and incentives.

Do You Anticipate Expanding or Relocating in a Particular Region?

Each global region has its preferred incentives to attract economic investment. We have expertise negotiating around the globe.

Is Your Lease Expiring Soon or Are You Purchasing Real Estate?

If yes, an opportune time to negotiate more incentives locally or see if another jurisdiction can make relocating worthwhile for your company. 

Are you Seeking All Available Sources of Global Credits and Incentives?

Take a fresh look at what is possible. From location services and site selection to supply chain to R&D and intellectual property, to customs, duties, and digitalization. A&M covers the full gamut.

Are You Considering How Incentives Will Increase Shareholder Value and EBITDA?

A&M spends a considerable amount of time on the front end to understand a client’s industry, culture, business strategy and goals. Our team will assess operational costs and capital expenditures, investment plans, and the company’s global real estate footprint to leverage subsidies. This will help reduce the effective tax rate and inject cash into the business. 

This value not only offsets costs in the form of savings but also creates opportunities to boost performance and human capital. A&M’s Global Business Incentives solution will work with your company to:  

• Improve cash flow: We help companies capture above and below the line benefits that increase liquidity, reduce expenses, and improve earnings before interest, taxes, depreciation and amortization (EBITDA).This enhances shareholder value.
• Drive acquisitions: Participation in Credits and Incentives programs allow for greater returns on investments for new acquisitions and post-acquisition synergies. 
• Reduce operational costs: Expansion, realignment, relocation, and increased efficiency of existing facilities creates opportunities to leverage credits and incentives. 
• Expedite permitting: Our relationships with many state and local government agencies helps us negotiate expedited permitting and pursue favorable sales and use tax agreements simultaneously.
• Create community goodwill: Companies bring needed jobs and investment to local communities, creating favorable impressions of the organization and its work.
• Shape unique incentive packages: Companies can take advantage of multiple credits and incentives by combining existing state and local R&D credits to stimulate organizational growth customized for the business. Examples include property tax abatements, payroll withholding benefits and many others. 

Why Call A&M for Global Business Incentives Solutions? 

A&M is a forward-thinking organization that has a hands-on mindset for our clients. We take pride in our brand philosophy: “Leadership. Action. Results.” Clients call us when they are seeking: 

• A tailor-made approach: Our Global Business Incentives team customizes the incentives to your company’s needs.
• Independence: A&M is not an audit firm, so we are free to negotiate on our clients’ behalf in pursuing economic incentives.
• Economic development relationships: We have strong relationships with economic development officials across various locations, which enables us to earn our clients the maximum number of credits and incentives possible.
• Deep experience: Our team has a century of combined of experience identifying, negotiating, and finalizing economic development agreements in the United States and around the world. 
• Deep, diverse team: We have access to firmwide expertise, covering multiple disciplines.

Did you know?

State and local governments in the U.S. hand out billions of dollars in grants and incentives annually.

Source: Tax Foundation