When companies want to invest abroad, one of the best options is using SPVs because they cushion investors. Since an SPV investment is considered a different entity, its operations are different and off the book to protect assets of investors from the parent company in case of insolvency.
How can you optimize SPV investment? In this post, we bring you four most useful ways that an agency can help you to optimize special purpose vehicle investment.
Setting up the right SPV
When you contract an agency to assist you to form an SPV, it is easy to focus on the right jurisdiction, optimize the operations and profits. Whether you are using trust or a limited liability company, the agency will help you to understand the structure, objectives, and how to optimize every investment.
For example, you can make focusing on capital markets the main objective. By working with an experienced agency like Accoplus that have experts in off shore operations, it is easy to use the experience gained from past operations in making the right investment decisions.
Creating a wider focus for investment in Hong Kong and beyond
Unlike the limited liability company that is allowed to make direct operations that generate revenue, there are a lot of limitations on SPVs. Though they have huge benefits such as separating assets of parent company, the investment options are relatively limited.
However, working with agencies helps investors to get a bigger picture of SPV and where to focus. For example, the SPV can be used to acquire funds and finance big projects with huge returns to the investor.
Top agencies will help you to stay free from risky investments
Every time that an SPV is mentioned, what comes to people’s minds are mega scandals such as Enron. Enron, like other top companies that used SPV investment put the liabilities off the balance sheet so that the assets were not visible. By keeping the SPV off the books, investors were made to think that the business was on its upward trend while everything was indeed very bad.
This is the problem that you can avoid by working with top agencies such as Accoplus. From the start, they ensure you to understand SPV investment, their operations and related impacts. This ensures that you can use the SPV to your advantage as opposed to directing it to ultimate collapse.
You focus on projects that competitors can never know about
Many companies operate in a very competitive business environment that demands application of creativity to thrive. Unlike in the past, competitors can easily know your projects, targets, and focuses by following the company operations.
However, using Accoplus creates a different way of looking at SPV investment to ensure competitors cannot find you.
How to be successful with your SPV strategy?
To be successful with your SPV investment, it is important to understand how to separate assets from the mother company and venture into the right projects.
By working with professional agencies, you are able to consolidate their many years of experience to be able to venture into huge projects without endangering the mother company.