Research. Companies need accurate, detailed comparative information on incentives. Even if a project is being outsourced, some key costs typically pass directly to the customer. Other costs might be negotiated lower if government incentives are maximized to match the project's specific needs. Most governments provide information on their investment incentives, if you know where to look and who to ask. For example, incentives such as training assistance, research allowances, or fast tracking of permitting may be offered by different agencies or at different levels of government in different countries. Where does a company go to find the right information? Even when it is found, it seldom allows an apples-to-apples comparison between sites. If the website's last update is a year ago, is the information current? If new incentives have been announced, have they yet been translated to English, and have they been posted on the website?

PacTac Advisors Inc. has assembled the details of investment incentives available in key locations in around the world. We have done the time-consuming research of searching web sites, collecting hard copy information, meeting with government and investment agency representatives, and seeking information through our network of service provider and company contacts. Our base of information and contacts is strongest in the Asia/Pacific, Eastern Europe, and the Caribbean, but the methodology applies globally.

Using PacTac's extensive incentives database on behalf of a client, PacTac Advisors research locations worldwide, gathering incentives information specific to an industry or even to an individual company.

Incentives Assessment. As a client begins the process of considering alternative sites, PacTac Advisors will conduct an assessment of the company's specific needs and the likely incentives, concessions, and assistance available in each of the sites being reviewed. This involves input from the company regarding specific issues, such as materials imported, staffing expectations, own or lease plans, tax positions in different countries, existing operations in each country, and incentives already granted. It also involves a review of incentives available in countries being reviewed, and of packages that have been structured for other companies. These issues offshore often are not as significant in dollar terms as incentives in the U.S., but they can have a critical impact on the success of operations once the company is operational. This assessment will give the company an overview of the issues specific to the company's success, and the scope and value of possible government concessions.

First Round Meetings. To properly explore discretionary incentives, it is usually valuable to meet with the government agencies in each location being considered, to present the parameters of the project and propose best-practice incentives for the company. This process is usually done on a no-name basis, protecting the client from direct contact by the government and other parties, and protecting the confidentiality of the project. Since such projects often involve relocation and reduction in workforces in other locations, this confidentiality can be critical both for morale and for legal reasons. After these meetings, PacTac provides the client a detailed report on the prospects for specific incentives by location.

Incentives Negotiations. PacTac Advisors can then participate in the process of selecting a site by conducting the actual incentives negotiations with the governments involved at the different sites being reviewed. PacTac's involvement can be on a broad basis or can be only focused on specific incentives. This is a time-intensive service, with preparation being the most important element of negotiations. The role taken by PacTac Advisors in the negotiations and information gathering for those negotiations will be determined by agreement with the client, based on the specific services desired by the client. PacTac's top executives have years of negotiating experience on major projects (see Background/Resources). PacTac's experience negotiating with government officials and politicians can be critical to obtaining the best incentives package possible.