![]() ![]() By having its headquarters in the jurisdiction of choice, it can relocate some or all of its senior management there to more effectively drive overseas expansion and.Access to a broader pool of overseas investors, who may be more willing to invest in a company in their own jurisdiction as opposed to a foreign one.Generally, a flip-up is an integral part of the go-global strategy of a startup/scaleup by potentially providing the following benefits: ![]() ![]() The original shareholders still maintain an interest in the original company, although now the interest is an indirect one.Īfter the flip-up, it can be said that the business’s head company is now located overseas. Legally speaking, the shareholders are exchanging their shares in the original company for shares in HoldCo, which will become the 100 per cent parent of the original company. Usually, but not necessarily, HoldCo is a newly incorporated shell company. HoldCo would be incorporated in the foreign jurisdiction of choice, be it the U.S., U.K., Singapore, China, Hong Kong or some other jurisdiction. Put simply, a flip-up involves interposing a company (“HoldCo”) between the original company and its shareholders. Whilst this is a commonly-discussed concept, myths and misconceptions abound. When a company wishes to launch its go-global strategy, one of the most topical issues is the concept of a “flip-up”. ![]() To realise the true potential of a startup or scaleup tech company, going global is practically expected by its stakeholders. ‘Go-global’ is one of the most oft-repeated mantras in the Australian tech sector – and for good reason.
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