dave mouncey smith & williamson solomon hare llp [email protected] ralf krüger/andré...
TRANSCRIPT
Dave Mouncey Smith & Williamson Solomon Hare LLP
[email protected] Krüger/André Hollnagel
CFH Cordes + Partner WP StB RAHamburg/[email protected]
CFH Cordes + PartnerCORDES + PARTNER GMBH
Nexia International Client Profile
February 8, 2008
Smith & WilliamsonSolomon Hare
Reasons for choosing Nexia• Brand awareness• Local presence• Reporting structures, network• Responsibility for the client• …
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Langley Holdings plc
Claudius Peters Group
Piller Group
ARO Group
GermanyChinaFranceUSASpainSingaporeBrazilIndiaUKRomania
Australia* France* USA Spain UK Germany
* France USA Germany Belgium Spain * Mexico China* Sweden UK
Total fees outside UK: appr. €750k
Nexia fees: appr. €550k
2001 2006 2007 2004
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Langley Holdings plc – Global Presence
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Key Highlights – Year Ended 31 December 2007Year ended
31 December 2007
€’000
Year ended31 December 2006
€’000Revenue 493,852 347,566
Non-recurring items (4,053) 18,230
Pre tax profit 56,735 59,912
Net assets 156,388 128,062
Net cash 99,744 69,509
Orders on hand 251,288 188,245
No No
Employees 2,413 2,179
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
How does this work?(best practise)
February 8, 2008
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
e. g. joint cooperation:
- Smith & Williamson/Salomon Hare, UK (client relationship; lead manager) - CFH / Nexia Hamburg, Ger (local tax+ audit expertise).
1. Starting Point
- British Investor bought a group engaging in the machinery industry (incl. a holding company and several subsidiaries operating worldwide and in Buxtehude, Ger - near Hamburg)
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Legal Structure Langley Holdings plcUK
Claudius Peters GroupGmbH
Technologies GmbH
Technologies S.A.
(Italiana) srl.
(Ibérica) S.A.
Aerospace(dormant)
(Americas) Inc. do Brasil Ltda.(Asia Pacific) Pte.Ltd.
(China) Ltd.Projects GmbH
Piller Groupsee next page
Romania srl
(Beijing) Machinery Services.Ltd
CPVA GmbH(dormant)
(UK) Ltd.
CP India Pvt. Ltd.
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
2. Services / tasks of CFH („Nexia Hamburg“)
- CFH was appointed to being auditor of the German subsidiaries of the Langley Group
- due to good circumstances, the group is performing excellently
- Mr Langley being hungry for further investments
- Nexia Hamburg was linking to a local M & A- company (without finding fees for Nexia)
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
3. Acquisition of Piller Group
- new target (group of companies) found as possible investment tasks for German Nexia companies:
- consulting in special tax-issues in Germany- structuring the acquisition financed by equity
(liquidity within German subsidiaries) with view to tax reasons
Legal StructureClaudius Peters
Technologies GmbH
Power Systems GmbH
Inc. (UK) Ltd. Australia Pty. Ltd. France SAS. Italia Srl Iberica S.L.
Dynasine GmbH
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Conclusions of PillerAcquisition
- enlargement of the auditing-mandate, reporting (generating profit) - tax issues becoming more and more complex (chance to create and to design in cooperation with Solomon Hare)
- transfer pricing
- financing matters (structured finance)
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
4. Next Acquisition AROThe Steps…
- Investment developing excellently again
- Investor interested in further investments
- contact to M&A-company (by “Nexia Hamburg”)
- tax and commercial due dilligence
- new target found as possible investment
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Conclusion of ARO Acquisition - mandate for tax and commercial due diligence in Germany (investor focused on highlights and quickness task performed by Nexia companies in time, investor can make the acquisition based on a price lower than the price offered by the competitors, because of the
quickness in which the investor receives the information necessary and the quickness in his decision to buy)
- new auditing mandates for Nexia companies worldwide
- new chances for tax-consulting mandates
- “desire” of the investor for further investments
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
5. Latest Acquisition Bradman Lake Group
- Former Investment developing excellently again
- Investor interested in further investments
- M&A-company in Hamburg looking for new investment, finding new group of companies
- unfortunately, the German subsidiary of the new group is not interesting (insolvency risk)
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
Final Result - note from Nexia Hamburg to the investor in brief form for commercial issues
- investment with a right to cancel the contract for the German company
- no further mandates in auditing for Nexia Hamburg but client happy, now paying attention to the legal structure of his former investments
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008
“New” Tasks
- transfer pricing worldwide
- taxation of cascade 5% in german tax law
- use of losses in the group
- dissolving links of liabilities, minimizing risks
- thinking of changing legal forms of the group
- in order to avoid cascade-effect- trade tax becoming more important in
Germany (after latest tax-reform)
Value of Nexia
• Protect existing clients
• Attract local clients
• Efficient international network
Smith & WilliamsonSolomon Hare
CFH Cordes + PartnerCORDES + PARTNER GMBH
February 8, 2008