Overview
Purpose & Objective
Purpose: Consolidate Legal and Risk Management functions to gain maximum leverage and efficiency.
Objective: Implement change with minimal disruption to ongoing operations.
Value & Synergies
Value Drivers: Leverage combined resources and the insurance portfolio.
Main Synergies: Significantly reduce insurance costs across the board.
Costs & Risks
Main Costs: The anticipated costs for this integration are minimal.
Risks: The project carries minimal operational and financial risk.
Implementation Schedule
-
Prepare Legal Entity Change
August 2024 - September 2024
-
Define Relationship with Outside Counsel
October 2024
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Integrate Filing and Record Retention
November 2024
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Determine Professional Affiliation
December 2024
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Follow Communication Policies
January 2025
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Integrate Legal/RM Software
February 2025 - May 2025
Synergy Summary ($000)
| Projects/Actions | Comp. Date | Headcount Reduction | Other Expense Reductions | Full Year Savings |
|---|---|---|---|---|
| Reduction of IP Paralegal (salary and fringe) | 10/31 | 1 | - | $44 |
| Reduction in National Counsel Legal Expenses | 12/31 | - | $200 | $200 |
| Elim. of bank charges related to workers comp. | 9/30 | - | $96 | $96 |
| Reduction in Insurance Broker Fees | 10/31 | - | $200 | $300 |
| Reduction in Workers Comp. Insurance Costs | 12/31 | - | $63 | $63 |
| Reduction in Liability Insurance Costs | 12/31 | - | $1,170 | $1,170 |
| Reduction in Exec. & Misc. Risk Insurance Costs | 12/31 | - | $170 | $220 |
| Total | 1 | $1,899 | $2,093 |
Key Organizational Changes
- Combination of two legal staffs with elimination of one paralegal.
- Restructure reporting of Risk Management and Insurance to Legal Department.
- Centralize international legal activity at Corporate.
- Headcount reduction of 1 (approx. 10%).
Key Issues & Assumptions
Staffing Structure
Continue under the proposed organizational structure for two months to determine the adequacy of the new staffing level and make adjustments as needed.
Insurance Estimates
Estimates have been developed for pre- and post-acquisition insurance rates based upon the best available current information from our broker and insurance providers.
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