Finance and Accounting Outsourcing (FAO) transactions can impact virtually every aspect of a company's business. As outsourcing continues to move up the value chain, our clients increasingly are asking us to become involved in these transactions. These transactions are often rather challenging from a business and a legal perspective due to their direct implications on a company's internal controls, and quite frequently, cash flow. They also often involve SAP, Oracle or other ERP implementations and hosting arrangements, which further increases their complexity and criticality to the client. Quite frequently, FAO is only one part of a multi-process transaction.
We can help you maximize the potential value of your FAO opportunities. We have an extensive FAO resume and our US partners have been recognized as America's Leading Lawyers in the BPO arena by Chambers USA, due not in small part to our experience with FAO transactions. Your company's advisors, including legal counsel, need to be able to communicate clearly and easily with a larger cross-section of your organization, and to understand the important issues and metrics from these other functional areas that will make the transaction successful. Our team includes experienced outsourcing lawyers with securities and finance backgrounds who understand the regulatory regimes and market forces that set the tempo for your accounting function. Hunton's approach to FAO transactions, and its extensive and diverse experience, uniquely qualify our attorneys to assist, from preparing the service agreement which contemplates the specific transaction, to structuring and documenting the relationship in all its complexities. As part of the transactions described below, we have addressed the following finance and accounting functions, among others:
- accounts payable;
- accounts receivable;
- general ledger;
- capital asset management;
- cash management;
- financial reporting;
- travel and entertainment reimbursement; and
- Represented a Fortune 500 specialty retailer in comprehensive multi-process transactions, including distribution, finance and accounting and involving over a dozen vendors and multiple service locations.
- Represented one of the world's largest retailers in outsourcing a major portion of their F&A function to IBM with services being provided from the Philippines.
- Represented a major energy company in a $1.6 billion business process transformation and outsourcing arrangement with IBM, including finance and accounting functions.
- Represented international, regional and community banks in connection with a range of transaction processing agreements.
- Represented a GSE in connection with a joint venture, software development and transaction processing arrangement relating to “next-generation” residential mortgage securitization.
- Represented an operator of electronic exchanges in a loan-trading platform joint venture with a Federal Home Loan Bank
- Represented a major insurer/financial services company with $105 billion in assets, operations in 24 countries and 6,900 employees serving 15 million customers around the world in a $175 million outsourcing arrangement with Genpact, covering finance and accounting, data entry, claims processing and information technology.