VPTax Case Studies

CASE STUDIES

For more than 20 years VPTax has been helping companies of all sizes deal with their tax issues – efficiently and effectively.


These six case studies illustrate the customer experience you will get from your Tax Director down the hall at VPTax.

Exponential logo
Envivio Logo
Optimedica Logo
Incyte Logo
Pacira Logo
Enobia logo
Exponential Interactive

Exponential Interactive got a “Tax Director Down the Hall” to help plan its next growth phase


According to John Rettig, many smaller growth companies could benefit from the VPTax outsourced Tax Director model. “Too many companies don’t think about taxes until it’s too late to take full advantage of the opportunities.”

Our knowledge and experience working with Audit Committees enables us to forge good working relationships, keep all parties well-informed and working as a team.

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Envivio

VPTax decoded Envivio’s International Tax matters in less than 2 months


“We use VPTax for income tax, sales and use tax, and payroll tax,” says Controller Gray. “They are a full-service one-stop shop for all our tax needs, and I feel I can call them if I have a question on any tax issue–and get an immediate high-level response.”

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Optimedica

OptiMedica maximized tax deductions from prior years’ losses with VPTax


“With VPTax, we know we will get the best answer possible.”

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Incyte

Incyte Corporation and VPTax – Together for more than 15 years


“The comfort of having a tax team that doesn’t change every 9-12 months, as often happens in the industry, has been tremendous.”

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Pacira

Pacira Pharmaceuticals gets more for less with VPTax


“VPTax is a one-stop shop for all my tax needs.”

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Enobia

VPTax helped Enobia with challenging tax matters on a global scale ahead of its acquisition


“VPTax offers a paradigm shift in taxes that will force people to think, and act, differently.”

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Exponential Logo

Exponential Interactive got a “Tax Director Down the Hall” to help plan its next growth phase

Exponential Interactive – based in Emeryville, California with operations in 26 countries

VPTax became Exponential’s Part-time Tax Director when the company was pre-IPO in 2011

Results: The part-time Tax Director model enabled Exponential to take advantage of the broad and deep corporate tax experience of the VPTax team, but at a lower cost level than the salary of a full-time staff Tax Director.

John Rettig, CFO says:

“For Exponential, having an outsourced Tax Director is the right model. VPTax helped us get our heads around complex tax issues, and their support has enabled us to go from being reactive to being proactive on the tax front.”

“VPTax have been on the other side of the fence, so they know how to do things efficiently and not waste time.”

“With VPTax, we’re able to make what outside advisers do more efficient and less costly.”

“Too many companies don’t think about taxes until it’s too late to take full advantage of the opportunities. When a company is losing money early in its life, that’s the time to start thinking and planning for the longer-term tax situation. VPTax has unique experience and expertise and can be a valuable asset in that process.”


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envivio_logo

VPTax decoded Envivio’s International Tax matters in less than 2 months

Based in San Francisco with operations worldwide Envivio hired VPTax when pre-IPO in 2011

VPTax Mission: Take the lead on all tax matters in connection with the S-1 filing required for an IPO. Deliver a quick turnaround (less than 60 days), on customer’s S-1 so they could get on file.

Results: For the valuation of Envivio’s IP, VPTax retained the services of an independent economist specialized in transfer pricing. The valuations were completed quickly and more cost-effectively than if they had been done by the in-house valuation department of a large accounting firm.

Envivio’s auditors approved without material comment the tax provisions and memos produced by VPTax for the S-1. Envivio was able to meet their internal deadline of getting the audit completed and S-1 on file in less than 60 days. Envivio joined the Nasdaq in April 2012 (NASDAQ: ENVI).

Tim Grey, Controller says:

“VPTax has the technical abilities to understand and explain complex issues and make sure we have the correct structures in place. They are much more responsive than a large accounting firm. When I call one of the principals at VPTax, I get immediate answers. I don’t get passed off to a manager or review partner as at some other firms.”

“We use VPTax for income tax, sales and use tax, and payroll tax. They are a full-service one-stop shop for all our tax needs, and I feel I can call them if I have a question on any tax issue–and get an immediate high-level response.”


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optimedica_logo

OptiMedica maximized tax deductions from prior years’ losses with VPTax

Based in San Francisco with operations worldwide

From 2005 – 2010: VPTax provided Corporate tax strategy and tax return work.

In 2010 OptiMedica agreed to sell part of its business to Topcon Corp of Japan.

VPTax Expanded Mission: Structure the transaction so as to maximize tax deductions from the company’s losses in previous years.

Results: VPTax did a “great job” on the tax issue. “It was a very complex calculation involving multiple years of history and it came out very favorably for us,” said Dave Satterfield, Director of Finance. “Their work had to be scrutinized by the auditors and our other accounting firms, and it passed all the scrutiny.”

Next Chapter: Following the transaction: OptiMedica needed to resize its business model and expenses to match its smaller size.

VPTax proactively assisted in this process. While previously handling OptiMedica’s income, international, sales and use and property tax compliance and consulting, VPTax quickly modified their service offering to match the reduced R&D nature of the post-transaction OptiMedica.

Results: In March 2012, OptiMedica moved to a new larger global headquarters, and is now up to 100 employees worldwide. Throughout this growth, VPTax has remained the company’s lead tax advisers. Optimedica values the continuity of personnel at VPTax.

Dave Satterfield, Director of Finance says:

“I look at VPTax as my corporate tax people, and I rely on them, as does our CFO,”

“With a large audit firm, the lower levels of people, the ones you see most often, are changing all the time. With VPTax we don’t have that. We know the principals there, and we go to them whenever we have an issue and we know we will get the best answer possible.”


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Incyte_colour_logo

Incyte Corporation and VPTax – Together for more than 15 years

Incyte Corporation (Nasdaq: INCY). Headquartered in Willmington, DE with 370 employees

In 1997 Incyte partnered with VPTax to manage its corporate income tax compliance. In the years that followed, Incyte underwent significant growth and transformation. VPTax was on hand to offer tax expertise and practical guidance every step of the way.

Results

Over the years VPTax:

1. Helped Incyte utilize research and development (R&D) tax credits by managing the entire process, yielding millions of dollars in potential tax savings. In addition to assisting the company with the strategy for R&D tax credits, VPTax evaluated the quality of the credits under FIN 48, and supported Incyte while under audit.

2. Supported Incyte through a major restructuring, helping to shut down state filing obligations as the company changed course and moved operations across the country.

3. Advised Incyte on various issues, including general tax issues, shutting down foreign subsidiaries, sales tax compliance and preparation, and preparing financial statement disclosures related to income taxes.

4. Continues to help the company meet its growing needs as Incyte contiinues to experience dramatic growth.

Paul Trower, VP and Controller says:

“We appreciate that VPTax is client-focused, hands-on and accessible,”

“They have a lot of experience and skills dealing with a wide range of issues, and get back to me right away whenever I have questions.”

“Our company has changed quite a bit over the years, and the comfort of having a tax team that doesn’t change every 9-12 months, as often happens in the industry, has been tremendous.”


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Pacira Logo

Pacira Pharmaceuticals gained more and paid less with VPTax

Pacira Pharmaceuticals Inc. (NASDAQ: PCRX)

In 2010, Pacira retained VPTax as a consultant on tax issues.

The focus of VPTax was corporate taxation – providing practical, actionable advice that saved Pacira time and money.

Results

VPTax helped Pacira:

1. Reduce its tax bill for the Delaware franchise tax, delivering significant savings.

2. Develop a strategy for documenting and reporting research and development (R&D) tax credits, to support tax savings in future years when Pacira becomes profitable.

3. Cut the cost of tax advice. The expertise of VPTax partners reduced the time required for research of tax issues and lengthy meetings with high-paid accounting firm staff.

4. Prepare property tax returns & managed the audit of prior property tax returns, eliminating the need for costly third party contingent fee consultants.

In 2011, Pacira expanded VPTax’s role at the company, asking VPTax to manage their tax returns, in place of the Big Four accounting firm that previously had that responsibility.

Lauren Riker, Executive Director of Accounting and Reporting says:

“VPTax has a very high level of expertise and a broad knowledge base of tax issues, so I am able to get an answer quickly, and get it explained at a level where I can talk to our CFO and our Audit Committee about the issues involved,”

“It’s one-stop shopping for all my tax needs, it’s lower cost than a large firm, and VPTax partners are available on the other end of a phone line whenever I have a question.”


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Enobia Logo

VPTax helped Enobia with challenging tax matters on a global scale ahead of its acquisition

Enobia Pharma Corp., Montreal

In 2011 Enobia hired VPTax to manage its increasingly complex tax affairs in the U.S. and internationally, and implemented an aggressive exit strategy aimed at taking the company public or selling it.

Result: In February 2012, that strategy reached fruition when Alexion Pharmaceuticals acquired Enobia for up to $1.08 billion in cash and future contingent payments.

In the period leading up to the acquisition, VPTax:

1. Provided leadership on managing Enobia’s global tax activities

2. Acted as internal “Tax Director,” creating a collaborative environment in which VPTax worked closely with and managed the activities of other technical tax experts, including Big Four advisors

3. Evaluated compliance status in all jurisdictions and addressed any deficiencies

4. Provided a wide range of scalable services on short notice including sales/use taxes, property taxes, and franchise/income taxes

5. Managed tax due diligence efforts as part of preparations for the IPO/sale

6. Provided independence so the spirit as well as the letter of SOX compliance was achieved

Jeff Mack, Enobia’s CFO says:

“VPTax is scalable as to cost and function. They provide sales tax filings in multiple states at very affordable rates, and also provide high-level technical advice when that’s necessary.

“They showed particular skill in negotiating with, and forging consensus among, all our advisors.”

“VPTax Principal Tom Brehmer brought common sense leadership into a technical world. He not only met the technical requirements in all regards, he made it so I could understand and communicate the principal issues to others in a clear and understandable manner. “He is among an elite group of expert and balanced people in his profession.”

“VPTax offers a paradigm shift in taxes that will force people to think, and act, differently.”

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