All Your Eggs In One Basket: An Easter Thought?

Conventional wisdom warns us against putting all our eggs in one basket: portfolios must be diversified, risk spread as thin as possible...

However, in our line of work, putting all your eggs in one basket has proven advantages whether it be when structuring investment funds, large group of companies, or dealing with complex transactions. Over the years, we have built an integrated approach of tax advice and corporate implementation services that is designed to bring value in many different ways, where and when it counts most to you.

During the structuring phrase, I definitely view a cross-cultural approach as the ground for a solid foundation. I also like to think that a good adviser is not the one with the right answers (even if these do help at some point!), but the one asking the right questions. In that sense, advice should not be given in small isolated bits, but put into a larger business context and thought of as a turnkey solution. Because our team of tax and corporate experts work together and as business partners with our clients, they have a thorough understanding of fund mechanics and are fully aware of the value creation process. This translates into being able to provide solutions that are aligned to the investment strategy and which have a positive impact on IRR and on carried interest. Also, often overlooked at the structuring phase is the need to ensure fluid cash movements. Clients may be surprised when we ask for their cash flow model. But they tend to be even more surprised when cash trap issues arise. Our combined approach allows us to fully integrate their model into our advice, thus ensuring cash availability as per needs, or preventing cash trap issues when distributing investment proceeds.

During the implementation phrase, the value of using integrated services is gains in efficiency. Because we work together in the same office at mere steps from each other, the flow of communication is greatly enhanced and we avoid traditional communication gaps between tax and corporate advisers. This ends up as a win-win situation: projects run smoother and clients benefit from reduced time to market, with no hiatus between initial design and actual structure implementation.

When the structure is up and running, you may think that there is little value in dealing with recurring tasks...