Incentive negotiation is an important dialogue that must be woven throughout the entire site selection process, especially since the long-term results will directly affect your company’s viability and cost of doing business.
At Ady Voltedge, we believe incentives should rarely be the driving factor in a company’s location decision. Instead, we approach incentives as a “tie breaker” between markets that offer the best operational environment for your business.
To that end, our team engages state and community leaders in collaborative negotiations to develop the best solution for our client’s business. Too often, consultants and businesses approach incentives with the goal of getting the “biggest number.” But focusing solely on that pursuit ignores all the non-financial incentives that could be more valuable to your business. We often include an economic impact analysis of our client’s business at each finalist business location to help frame the negotiation process. At Ady Voltedge, we work with our clients to develop a package that best fits their needs.
Types of Incentives
There are basically two types of incentives offered to corporations by communities, cities, or states vying for your site selection. The first category is called “as of right” incentives, because they are available to any company that meets a certain set of criteria. Thus, for all practical purposes, no negotiation is required.
The second category-and potentially the most lucrative and desirable for your company-is a myriad of options called “discretionary” incentives, which are secured exclusively for your company in exchange for certain requirements and guarantees. As these are dynamic and virtually limitless in number, it is important that you engage a consultant who is knowledgeable and up-to-date on them. This is where Ady Voltedge’s strengths lie.
Contact Ady Voltedge for insight into how the incentives process work, and how we can help create a package that is the most favorable for your business.