Global automotive supply manufacturer transitions from all legacy systems
Baker Tilly was engaged to assist in planning and managing the transition of the company’s systems and operations worldwide. Baker Tilly has also been engaged to provide comprehensive services including annual tax and audit work, transfer pricing and US CARES compliance and forgiveness optimization.
Client background
The client is a $160m global automotive supply manufacturer with operations in the US, Germany and Japan.
The business challenge
In support of a client’s acquisition, financial due diligence services were needed on quality of earnings. Once the company had been purchased, there was an immediate need for assistance with planning the transition of personnel, equipment, processes, systems and technology and data from the divesting company to new client facilities, systems and technology. Baker Tilly was engaged to assist in planning and managing the transition of the company’s systems and operations worldwide. In addition, Baker Tilly has also been engaged to provide comprehensive services including annual tax and audit work, transfer pricing and US CARES compliance and forgiveness optimization.
The Baker Tilly approach
We are providing the following services:
- Financial due diligence services and projection planning
- IT/operational consulting
- Annual audit and tax work
- Transfer pricing, R&D study and state and local tax incentives/credits
- US CARES (Payroll Protection Program) compliance and forgiveness
- Use tax and payroll tax registration
- Section 1202 and Opportunity Zone tax structuring
The business impact
The immediate result of our work is achieving the successful carve-out and transition of the client, including implementation of its own manufacturing lines, business processes, systems and technology infrastructure prior to the end of 2020, which marks the expiration of the Transition Services Agreement with the divesting company. The extrication and transition of the company into their own manufacturing plants and systems is being undertaken worldwide over the course of 10 months, including the physical move of their US manufacturing lines to a new client plant; most of which has been done remotely in the COVID-19 environment. Baker Tilly and the client anticipate the transition from all legacy systems to be complete by the end of the 2020 calendar year, and domestic and international operations online by October 1.