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An introduction to value adding services for US operations
Profit and cash generating solutions for UK head office management
DAI
Resolve is the UK agent for 2 US-based service providers:
Development Advisers (DAI)
DAI applies expert location analysis and incentive negotiation services to increase project ROI / IRR for manufacturing, distribution, office, and real estate development projects.
Core service offerings:
Investment incentive negotiation
Real estate advisory
Community cost analysis
Comdata
Comdata provides electronic payment solutions to transform the efficiency of purchase ledger departments, whilst also generating income.
Solutions include:
Accounts payable automation
Fleet cards
Corporate / employee payment management
Point of sale
DAI
Financial incentives can be earned on a wide range of capital investment, including:
• Market entry – establishment of new US operations, often by International corporates
• Expansion
• Routine capex – often ignored, or assumed incentives not available, but can generate repeat incentives
• Relocations / consolidations
• M&A
Incentives are available from federal, state and local authorities.
Incentives can be Statutory (“by rights” and “negotiated”) and Discretionary.Includes:
• Income tax credits
• Grants
• Property tax reductions
• Payroll tax reimbursement
• Capital contributions
DAIDevelopment AdvisersIncentive negotiation overview
DAI typically secures incentive packages equivalent to 10%-20% of capital investment
Common mistakes in negotiating incentives:
• Failure to utilise qualifying investment in negotiations
• Failure to identify incentive programme that can directly offset project costs
• Announcing early
• Improper valuation of incentive programmes
• Disclosing too much information
• “In house” teams overstretched and focused on larger or new projects only
• Lack of corporate strategy on incentives
DAIDevelopment AdvisersWhere experience matters …
DAI was founded by a government economic development official, giving deep technical and cultural expertise.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Automotive Supplier($12 Million
Investment / 150Jobs)
Textile FacilityExpansion ($33
Million / 45 Jobs)
Injection MoldingFacility Expansion
($10 MillionInvestment / 33 Jobs)
Energy Services ($3.5Million / 59 Jobs)
DAI Value Added
Client Expectation Incentive Package Secured
DAIDevelopment AdvisersCase study
Investment from $5-7m and jobs growth of 15+ (both over 3-5 years) can qualify for incentives.
Project Scope:
- $164 Million
- 430 Jobs
Challenges:- 30 day negotiation
timeline- Client historically
negotiated their own incentives
- Renegotiation of Utility Rates Required
Results:- Over $31 million in
negotiated incentives secured
- $16 million in discretionary incentives not previously received by client
- 18.9% of capital investment offset through negotiated incentives
DAI has negotiated incentive packages on investment projects representing over $9 billion and 7,500 jobs.
ComdataAutomating accounts payables
Current issues with Accounts Payable processes:
• Time required for manual data entry of cheques (still the primary US payment method)
• Banking fees associated with cheque processing
• Lack of visibility on cashflow and spend
• Inefficient integration of systems
50% of US corporates admit to problems with existing processes … and 70% are looking to increase use of electronic payments
Comdata solution:
Electronic payments via MasterCard virtual account – safe, secure and timely payment
Fully integrated with all major ERPs
Transitional management handled by Comdata
Rebates from MasterCard shared with corporate
Comdata solution turns Accounts Payable departments into revenue generators
ComdataHow it works
Accounts Payable automation
The ideal cheque replacement solution:
• Comdata systems are seamlessly integrated into existing disbursement processes
• Comdata then work with suppliers to transition them to electronic payment
• Payment authorisation automatically generates a unique account number (linked to PO# etc)
• Supplier receives immediate payment – safely and securely
• Payment reconciliations are generated automatically
• MasterCard rebate is earned
Multi-card MasterCard• Purchasing Card• Travel & entertainment card• Fleet cardTo control and manage employee discretionary spending
Pre-paid MasterCard solutions• Payroll card• Corporate disbursement card• Incentive cardTo remunerate and incentivise employees
ComdataValue proposition
Comdata clients include:TGI Fridays GAP Barnes & NobleUPS Coca Cola ViacomEbay Porsche UPSSteak n shake Pepsi Union Pacificamongst 20,000 accounts
4 key benefits of the Comdatapayment solution:
1. Incremental margin improvementthrough admin and bank fee reductions
2. Generate monthly incomethrough MasterCard rebates
3. Improve control and visibilitythrough electronic remittances and tracked payment control
4. Reduce manual processingthrough seamless integration into accounts packages and electronic reconciliations
Engaged to promote the services of DAI and Comdata to UK corporates, we can expand on and explain their service offerings to head office finance teams, before introducing them to your operational management locally in the US.
To discuss either DAI or Comdata further, on a no-obligation basis, please contact:
Martin McGeeCOO & Head of US Services
+44 (0)7957 [email protected]
About ResolveHow we can help …
A hands-on leadership, management, mentoring & fundraising team creating outstanding long-term value by consistently
applying the winning principles of the Top 1%
www.resolvegetsresults.com