1. What does successful cross border work look like?
Chris Appleton - Smith & Williamson (UK)
Jennifer Leary - CLA (USA)
Torsten Janßen - Ebner Stolz (Germany)
Dal Cheema - Nexia International
Chris/Dal

2. a new trend in international work
Introduction
a new trend in international work
relating to large multi-national groups
case studies
what we have learnt
areas to consider
Torsten

3. A new trend in international work
The trend and what is driving it
the international groups are retaining their Big 4 auditor for Group reporting purposes
but putting out to tender, blocks of subsidiaries (regional or national basis)
drivers at Group CFO and Audit Committee level
excessive fees being charged by Big 4
poor service levels at regional and local subsidiary level
both the above factors play to our strengths
Chris

4. A new trend in international work
trend over the last 10 years - Big 4 consolidation, sweeping up all the subsidiary audits in their client groups
impact on Nexia firms - a constant threat and steady loss of work
three recent developments with invitations to Nexia firms.
Jennifer

5. Key case study - Dekra Dekra background group turnover US$1.86 billion
Ebner Stolz has a close relationship with the client through prior due diligence work
UK FD was a strong supporter of Smith & Williamson
opportunity
multiple auditors in USA and UK
desire to consolidate audit provision and tax
EY fees seen as too high
competitive tender with EY and KPMG
Chris/Torsten

6. Key case study - Dekra Dekra solution – Nexia offered
single point of contact between Dekra and Nexia firms
significant fee savings
innovation on audit coverage
demonstration of how we would provide a local service
result
we were the most proactive team during the proposal
Dekra HQ knew and valued the work from Ebner Stolz and Smith & Williamson
Chris/Torsten

7. Key case study - Dekra Dekra
CLA and CohnReznick appointed in the USA, Smith & Williamson in UK and Nexia Friedman will get the work in Canada next year
fees
audit only work: US$140,000 (USA) and £40,000 (UK)
tax: all additional.
Chris/Torsten

8. Key case study - Eastman Chemicals
background
group turnover US$9.4 billion
large multi-national based in the USA
OUS Statutory Audits performed by Group Auditor, PWC, for years
challenge
fees and service level had diminished in various countries
competition for tender: other top 10 networks
Jennifer

9. Key case study - Eastman Chemicals
solution/value
global solution with the full coordination of 16 countries through the network
Nexia was noted to be #1 in capabilities, talent and chemistry; #3 in fees
ultimately lost due to fees; other network clearly “bought” the work.
Jennifer

10. What we have learnt a new trend in audit selection for multi-nationals
our Nexia offering plays to the client needs as we identify:
more cost effective pricing
better service levels
we have strong credentials and the Big 4 are happy to rely on our audit work in a group context – regardless of what they may say to an individual client
we have demonstrated that Nexia members have the desire and ability to work quickly, coherently and co-operatively together.
Torsten

11. having a lead partner/lead firm on such tender work is best
Areas to consider
having a lead partner/lead firm on such tender work is best
pricing continues to be competitive
building good relationships with large companies yields benefits in the tender process
need to utilize Nexia tools for “common branding”
share opportunities with Secretariat for tracking and assistance
Chris and Jennifer Identify the three issues which you have had with international proposals: - consistent branding – use of Nexia as the key brand in the proposal. DC to talk about the Nexia proposal template - organisational chart showing inconsistent photos – DC to talk about the “People finder” functionality - fees

12. proposal guidance and templates
Areas to consider
Nexia tools
proposal guidance and templates
Describing Nexia International guidelines
Nexia placemat
Tender alert system
case studies/credentials
member firm fact sheets and the “People finder” functionality
Coming soon
International roles and responsibilities document
Corporate design guidelines.
Dal Mention the use of tender alerts and proposal guidance for the Siemens Industry Software opportunity (co-ordinated by Nexia TS in Asia pacific)

14. Thank You!
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