/ Case Study

Altios and Foley Forge Strategic Partnership to Help Clients to Mitigate Risk in Global Expansion Projects

In todays complex global markets, navigating trade, industry and tax regulatory requirements is vital to long-term success. Altios and Foley help clients mitigate risk in international expansion projects through its combined offering. 
Summary

In todays complex global markets, navigating trade, industry and tax regulatory requirements is vital to long-term success. Altios and Foley help clients mitigate risk in international expansion projects through its combined offering. Complex industries, such as automotive and manufacturing, require knowledge of market and costs dynamics, along with a thorough analysis of tax and trade implications.  

Background

Today, companies looking to expand operations in a new market are often confronted with complex trade, industry and tax regulatory requirements. To manage risk, companies often need advisors with experience in diverse industries and markets. 

To better service clients looking to expand operations in new markets, Altios and Foley & Lardner LLP have joined forces. As a worldwide legal services firm with 24 offices across the U.S., Mexico, Europe and Asia, Foley brings together legal knowledge with market and industry experience.  

Challenge

Serving global clients within complex industries where regulations, taxes and markets are concurrently changing was a major concern for both Altios and Foley.   

For Altios, serving clients in their global expansion efforts can involve bringing in strategic partners with experience in diverse and complex industries to help mitigate risk and provide a long-term advisory role.  

Similar to Altios, Foley prepares clients in the initial setup phase while also serving as a long-term advisor to ensure a proactive approach to changing regulatory, trade and compliance concerns.  

By forming a partnership, Altios and Foley can provide clients with a complete analysis of the costs, risks and market potential of international expansion projects. Due to the significant investment often required when moving into a new market, especially in industries such as automotive and manufacturing, it is essential to bring together market opportunity, costs projections and labour conditions, in addition to regulatory and tax implications. 

Solution

Since their partnership, the two advisory firms have worked on several client projects in the automotive and manufacturing industries. As the investment levels required in both industries are high, Altios provided the initial analysis of overall cost variables and risk factors to determine the projected value of each expansion project. Equally important was the review of trade, tax and regulatory requirements from both short and long-term perspectives, which Foley provided. 

The regulatory requirements in the automotive and manufacturing industries are complex and vary by region,” said Marcos Carrasco-Menchaca, Partner at Foley Gardere Arena in Mexico, a subsidiary of Foley & Lardner LLP. They can considerably impact an expansion project, which is why it is essential to work with knowledgable advisors who can help a client navigate regulations.” By proactively understanding trade, tax and regulatory requirements, clients were able to mitigate investment risks.  

Carrasco-Menchaca recommends that clients begin the compliance process as early as possible. Although there are many interesting policies and incentives, it is important to know the key players and policymakers to prevent delays and remain agile to changing regulations,” emphasised Carrasco-Menchaca. I believe this is where our network and expertise, combined with Altios’ presence in key markets, is advantageous to eachs respective clients. 

Result

Working together on client projects in the automotive sector, Altios and Foley provided the outlook needed. For clients, a long-term perspective is vital, as tax and trade agreements often change and can impact the success of the international expansion.  

To ensure a thorough and updated analysis of regulatory changes, Foley studied each clients business to ensure any variations were proactively taken into account even after the initial project rollout.  

This attention to a business’s long-term goals, not just immediate needs, mirrors our values at Altios,” said Fanny Zunino, Practice Manager for Altios’ Automotive Division. 

Within the automotive sector, Altios and Foley have helped clients navigate the growing complexity of supply-chain management. As Zunino explained, the increased globalisation of the automotive supply chain has meant OEMs expect suppliers to be in each market. Also, laws and trade agreements are evolving to promote local and regional trade,” continued Zunino.  

These significant market changes are present in the new NAFTA and USMCA trade agreements, which require original equipment manufacturers (OEM) and Tier 1 suppliers to work with local suppliers to obtain tax benefits when exporting from the region. Understanding and proactively working within these new regulatory and market shifts helped clients prepare, adapt and ultimately lessen financial risk. The automotive industry is reflective of the global trend for businesses to be closer to their customers more than ever. 

I believe this is where our network and expertise, combined with Altios’ presence in key markets, is advantageous to eachs respective clients.

Marcos Carrasco-Menchaca
Partner at Foley Gardere Arena
Foley Gardere Arena

/ Foley & Lardner LLP provides legal services in diverse industries.  

/ The firm has 24 offices across the U.S., Mexico, Europe and Asia. 

/ The partnership offering helps clients mitigate risk in global expansion projects. 

Challenge

/ Regulatory, tax and market changes require agility and long-term expansion analysis. 

Solution

/ The combined expertise provides Foley’s clients with a full-service offering in global expansion.

Result

/ Clients can mitigate risk in global expansion projects. 

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