Service Overview
Business relocation and expansion decisions are one of the most important long-term decisions a company will have to face. Executive management must carefully weigh all available options when making such long-term decisions. Careful consideration is essential as to what specialists need to be utilized and what information must be gathered in order to make an informed decision. Relocation and expansion decisions affect every aspect of a company from their existing corporate culture right down to their bottom line. The key to enhancing any expansion and relocation decision is to engage a consultant who will assist in the formulation of a comprehensive strategy that is both efficient and cost-effective.
What We Do
Assessment
The first step in the business relocation or expansion decision process is an evaluation of existing facilities, products, and markets. This is done in the context of the company's overall business objectives and needs. We can help the company assess the strategic fit, costs, capacity, and market proximity of existing facilities. 3A's business relocation and expansion services are geared for manufacturing, research and development, wholesale/distribution and certain trade or office operations. Specifically we can provide cross state comparison studies, evaluation of sites, and negotiate incentive packages.
Cross State Comparison Studies
3A can provide cross state comparison studies. We can compare the tax environment in each state being considered.
Evaluation of Sites
3A can provide information and analysis to help a company decide where and how to locate its facility. We can screen locations to find those that meet the company's needs. We analyze key factors such as transportation logistics, labor availability, and operating costs. Acquisition alternatives and opportunities for business incentives are identified and compared. We will also assess a project's economic and environmental impact.
Negotiating Incentive Packages
3A does more than assist in finding the optimal site. We will assist in negotiating and securing the most beneficial incentive package. This is where the real savings are secured in terms of money. The difference between the best deal and what may be initially offered can be in the millions of dollars and even more in terms of productivity and efficiency. With the states becoming more competitive, the stakes associated with corporate relocation and expansion continues to rise.
Implementation
In addition to assisting in negotiating the best incentive package, we can help secure low cost project financing. We can accelerate the application and approval process and coordinate fulfillment of requirements. We can develop strategies to lower property, income, sales, and employment taxes. We can identify the lowest cost energy sources and find ways to reduce energy usage.
Post Implementation
The value of the 3A Business Relocation and Expansion Services does not end with implementation. We assist company management with long-term implementation. We help the company stay in compliance with the requirements of the incentive package. We also monitor statutory or regulatory changes as well as changes in the business environment that may have an effect on the company. 3A will be there to address critical business and tax issues as they arise.
What Are The Risks
There is very little risk associated with site selection services as formal contracts are executed to document an agreement between a company and state/local government. Most incentive agreements do however; contain clawback provisions which require the payback of prior incentives received as well as elimination of future incentives if a company does not comply with the conditions and terms and promises contained in their contract.
Principal Services
The suggested business relocation and expansion services that 3A would offer include:
- Initial meeting to gain an understanding and define the needs of the
expansion plans. Prioritize needs and select appropriate contacts with
utility, transportation, and private companies.
- Second meeting to
formulate an expansion/relocation strategy that is both efficient and
cost effective. Determine criteria for possible sites, and choose
initial communities. Prepare and mail prospectus on project. Analyze
communities written responses.
- Conduct initial community visits.
Evaluate communities and eliminate any sites not meeting project/site
criteria.
- Conduct final community visits.
- Prepare cross-state
comparison for each of the final site choices.
- Submit formal incentive
application for top site preferences. Negotiate incentives with local
and state officials.
- Execute agreement with local and state officials.
- Construction begins.
- Production begins and incentives kick-in.
- Monitor
agreement and meet quarterly with executive management.