Outbound Structuring Assessment
A fixed-fee international tax planning engagement
The Outbound Structuring Assessment is a fixed-fee international tax planning engagement designed for U.S. companies expanding beyond U.S. borders.
It provides senior management and internal stakeholders with a clear, defensible framework for how to structure foreign operations before growth, IP migration, or transactions lock in costly tax and operational efficiencies.
Our Outbound Structuring Assessment Services Include
Target Clients
U.S.-based companies that are:
Cross-Border Structuring, Planning & Transactions
- Entering one or more foreign markets for the first time;
- Adding foreign subsidiaries or branches;
- Moving IP, R&D, or supply chains offshore;
- Preparing for cross-border acquisitions, minority investments, or exit events; and
- PE-backed or founder-led companies transitioning to international scale.
- Typical clients include middle-market companies, sponsor-backed platforms, and growth-stage businesses that need strategic clarity without committing to full transaction tax work.
Reduce audit and reputational risk, improve tax efficiency, and document defensible positions for outbound investments, intercompany financing, and IP transfers. Delivered by senior international tax practitioners with practical implementation guidance.
Typical Issues Identified
- Over-reliance on treaty benefits without sufficient local substance;
- Thin capitalization and withholding tax exposure on intercompany debt;
- Transfer pricing and documentation gaps for intercompany transactions;
- Controlled foreign corporation (CFC) exposure and effective tax rate mismatches; and
- Reporting and disclosure risks (e.g., information returns, FATCA, local country filings, etc.).
Engagement Scope and Deliverables
The Outbound Structuring Assessment focuses on structure, risk, and sequencing, not detailed compliance or implementation. The Deliverable will constitute the “U.S. Tax Impact Summary,” which can be a combination of a written memorandum, PowerPoint, and other tables.
The Deliverable will contain an assessment of the following areas and associated issues:
1. Expansion Facts & Assumptions
We will collaborate with you to establish a shared factual baseline to anchor all downstream tax analysis. We focus on
(1) target jurisdictions,
(2) revenue streams (i.e., sales, services, IP),
(3) legal and operational footprint, and
(4) growth trajectory and exit horizon.
This will be documented in a Facts and Assumptions Statement for client validation.
2. Legal Entity & Expansion Structure
We evaluate alternatives to enter and scale internationally, emphasizing flexibility and tax efficiency. Our analysis will include the following:
- Branch vs. subsidiary considerations;
- Holding company and intermediate entity options;
- High-level assessment of local tax nexus risks; and
- Timing and sequencing of expansion.
Associated deliverables include a matrix of structure alternatives (with associated diagrams) and the U.S. Tax Impact Summary.
3. Expansion Facts & Assumptions
At a high-level we qualitatively identify (i.e., no modeling) where U.S. tax friction may arise as foreign operations scale and based on business and tax operating model(s). Areas of focus will be
(1) net-CFC tested income (NCTI) exposure overview (i.e., no modeling);
(2) Subpart F income red flags,
(3) foreign tax credit availability risks; and
(4) foreign derived deduction eligible income interaction considerations amongs others. These topics will be outlined in the U.S. Tax Impact Summary.
4. Transfer Pricing Readiness
We assess how intercompany activity will be viewed by tax authorities and future diligence teams and make qualitative recommendations of possible operating models with associated considerations.
The scope of the review includes (1) identification of intercompany transactions in current state where benchmarking and documentation is required, and a proposal of intercompany transactions in any potential future state; (2) a risk assessment for pricing and documentation based on nature of the transaction(s) and the jurisdictions and materiality; and (3) a practical roadmap for recommended implementation and compliance.
The transfer pricing readiness assessment will be included within the U.S. Tax Impact Summary.
5. Withholding & Cash Repatriation
We evaluate how cash can move across borders without unnecessary leakage based on proposed structures. Key considerations include:
- Dividends, interest, royalties, and service payments;
- Treaty eligibility risks; and
- Structural flexibility for cash movement.
The U.S. Tax Impact Summary will include a Withholding and Repatriation Risk Summary.
6. Exist & Transaction Sensitivity Analysis (i.e., M&A Readiness)
We will highlight how the structuring decisions may affect future transactions. Areas of focus include:
- Foreign subsidiary and asset disposition risks;
- IP migration issues and consequences;
- Structural features that could impact deal pricing; and
- Common diligence red flags.
This assessment and recommendations will also be documented in the U.S. Tax Impact Summary.
7. Recommendations and Roadmap
The engagement concludes with a prioritized, actionable plan that will discuss immediate and near-term structuring and planning considerations, with embedded discussion about relevant transfer pricing issues and follow-ons.
These will also be covered in the U.S. Tax Impact Summary. An optional management presentation with executive summary is also available on request.
Additional Resources
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