A German-headquartered automotive supplier (a global market leader for the supply of critical components in the trailer industry) faces many parallel challenges (e.g., post-merger integration, business simplification, and tax compliance frictions) in which transfer pricing is at the heart of the matter. We were selected as a trusted advisor on TP restructuring matters to support the CFO organization in this transformation, from assessment and design to implementation matters.

The solution topics involve complete TP redesign based on profit split analysis, transactional redesign to achieve business simplification objectives, and advice on how to address management KPI issues to enable PMI objectives. We were also asked to onboard tax and legal advisors to facilitate legal implementation.

The TP redesign process should trigger significant financial benefits for the group.