The ability to enter into new markets geographically can help drive top line revenue growth, or offer cost-cutting advantages in production and output. Companies expand internationally in one of two ways: organically or through M&A activity. International growth carries with it a number of added risks, the most prominent being currency. With the constant volatility in markets and geopolitical uncertainties in every geographic region (Trump, Brexit, North Korea, Venezuela riots), companies are struggling to centralize this risk.
September 15, 2008. This is the day treasury transformed from being important to strategic. What was later called the credit crisis was fueled by a massive constriction of liquidity like we had never seen. Suddenly, boards were demanding from their CEOs the answer to a simple question: how much cash do we have? These CEOs turned to their CFOs, who then turned to their treasury teams to provide the critical answer.
The White House recently announced its initial tax plan, teasing the financial community with a short series of bullet points. Although there is much work to do to formalize the plan, including passing it through a gauntlet of approvals and negotiations in Congress, President Donald Trump’s plan is effectively music to the ears of CEOs, CFOs and corporate treasurers.
Here are the highlights for corporate treasury:
1) Reduction of the corporate tax rate to 15%
2) One-time tax on overseas earnings