Tax Department Rebuild and Spinoff Staffing

The Client

Industry: Conglomerate (Security, Fire Protection, Controls) 

Challenge: Complete Tax Department Rebuild 

Scale: $35 Billion Enterprise

The Crisis: A Perfect Storm

In 2002, Tyco International found itself at the epicenter of one of the most infamous corporate scandals in modern history. The company faced a multifaceted crisis that threatened its very existence:

• Financial Meltdown: Tyco was teetering on the brink of insolvency, with a staggering $11 billion due and limited cash flow.
• Regulatory Firestorm: The company was under intense scrutiny, facing multiple investigations from regulatory bodies.
• Reputation in Tatters: Widespread distrust from the industry and investors had shattered Tyco's credibility.
• Leadership Vacuum: With key executives embroiled in scandal, there was an urgent need for a new, world-class tax team to navigate the complex challenges ahead.

The Imperative: Rebuild or Perish

Newly appointed CFO David FitzPatrick and Senior Vice President of Tax John Evard faced a Herculean task:

• Overcome Stigma: Transform Tyco's tarnished image from a liability into an opportunity for ambitious professionals.
• Attract Top Talent: Recruit elite tax experts willing to take on a high-risk, high-reward opportunity in a hostile environment.
• Navigate Complexity: Build a team capable of handling insolvency issues, regulatory investigations, and potential penalties.
• Regain Trust: Rebuild investor confidence through strategic tax management and financial transparency.

TaxSearch Turns Crisis into Opportunity

John Evard, drawing on past successes with TaxSearch, engaged us to tackle this unprecedented crisis. Together, we crafted a bold, multi-faceted strategy:

Strategic Summit: Conducted a high-intensity weekend strategy session to map out a detailed recruitment process.

• Talent Magnetism:
  • Crafted a compelling narrative, reframing Tyco as the ultimate career catalyst for ambitious professionals.
  • Leveraged TaxSearch's exclusive network to identify and engage top-tier tax talent with the resilience and strategic acumen to thrive under pressure.
• Phased Recruitment: Implemented a strategic, phased approach, prioritizing key leadership roles to set the foundation for success.
• Dream Team Assembly: Built a world-class tax team equipped to navigate insolvency, regulatory investigations, and drive Tyco's phoenix-like resurgence.

The Results: A Phoenix Rises

Immediate Impact

• 6-Month Marvel: Within six months, TaxSearch assembled a spectacular leadership team of top tax professionals.
• Financial Resurrection: By mid-2003, the new team successfully restated several years of financials, a critical step in regaining credibility.

Fiscal Resurgence

• 2002: $779 million cash flow (against $11 billion due)
• 2003: $3.4 billion cash flow
• 2004: $5.4 billion cash flow

Strategic Realignment

2004: Divested 28 businesses, strengthening core operations and focusing the company's strategy.

Catalyzing Corporate Evolution

TaxSearch's strategic staffing laid the groundwork for a series of successful corporate transformations:

• 2007: Tyco splits into three public powerhouses (Tyco International, Covidien, Tyco Electronics)
• 2012: ADT spun off as an independent entity
• 2013: Covidien launches Mallinckrodt as a standalone pharmaceutical force

At each juncture, TaxSearch played a pivotal role in constructing new tax teams, leveraging the elite talent pool from the original Tyco recruitment.

TaxSearch: Seeding Industry-Wide Impact

This was one of the largest, most successful incubators for tax talent, ever.

The original Tyco tax team evolved into an industry-shaping force:

• 10 team members ascended to head tax roles at multi-billion dollar enterprises.
• Key players transitioned to giants like Pfizer, Merck, and S&P 500 companies, taking on pivotal roles such as Executive Vice President of Tax, Senior Vice President of Global Tax, and Vice President of Global Tax & Treasury. These positions spanned diverse industries including pharmaceuticals, technology, financial services, and consumer goods.
• Several team members progressed to leadership positions in cutting-edge companies, with one individual becoming Vice President of Tax at Tesla and another taking on the role of Corporate Vice President of Global Tax and Treasury at Pfizer.
• Many maintained strategic partnerships with TaxSearch for their own talent acquisition needs, creating a ripple effect across the industry.

The TaxSearch Effect

• Crisis Navigation: We excel in high-stakes recruitment, turning seemingly insurmountable challenges into opportunities for transformation.
• Talent Alchemy: Our unique ability to identify and attract game-changing professionals goes beyond filling roles—we build legacies.
• Strategic Foresight: We don't just staff departments; we construct teams strategically positioned to drive financial turnarounds and long-term success.
• Network Amplification: Our placements create a ripple effect, establishing a far-reaching network of tax leadership that spans industries and decades.
• Reputation Rehabilitation: We possess the expertise to reframe negative perceptions, transforming troubled companies into attractive career destinations for top talent.
• Long-term Partnership: Our commitment extends beyond initial placement, as evidenced by ongoing collaborations with placed executives throughout their careers.

The TaxSearch Difference

At TaxSearch, we don't simply fill positions – we architect success stories. Leveraging deep industry knowledge, a vast professional network, and strategic acumen, we help corporate in-house tax departments and financial leadership build and sustain world-class tax teams. Whether navigating crises, driving growth, or maintaining stability, our clients recognize the power of tax to strengthen their organizations and position them for future success.

Ready to turn your challenges into opportunities for transformation?

Contact TaxSearch today and experience the power of strategic talent acquisition.

A quote like this would be idea here: "TaxSearch didn't just rebuild our tax department; they laid the foundation for Tyco's entire corporate resurrection. Their ability to attract top talent in our darkest hour was nothing short of miraculous." - David FitzPatrick, Former CFO, Tyco International