Using a third party to fund the transition and transformation part of the deal (T&T funding) has many and varied advantages. Firstly it provides real power to the client to compare service solution with service solution rather than dealing with the distortions of a cash rich supplier selling mainly on their capital strength and ability to fund change. Secondly, the impact of new legislation around showing the effects of operational risk and showing the full liability of leasing arrangements can be neutralised through deploying a SPV model. Thirdly costs overall will be significantly lower. There may well be additional tax benefits available.
Innovative Deal Structuring Services
More and more clients are demanding deal flexibility in terms of avoiding a minimum spend, inserting break clauses, etc. Burnt Oak Partners has been at the forefront of developing and deploying some very innovative deals structures that are designed to maximise the relationship and respond to the reality of business change. Some examples include part equity structures that change over time and against performance records; reversible clauses on asset ownership; automatic SLA’s based on average quoted share price performance; and optimal advice on VAT mitigation for financial service companies.