In an article in the Jerusalem Post, Amir Zolty, partner and head of our Hi-Tech practice, notes that quite a few companies are already laying the ground for relocation, given the looming legislation – intended to strengthen the executive branch and to restrict judicial review.
Amir speaks mainly about two trends: incorporating most (some say – practically all) new hi-tech companies abroad; and the ‘flipping’ of Israeli companies, turning them into fully owned subsidiaries of foreign companies, accompanied, in many cases, with the transfer their intellectual property to their foreign parent companies and waiver on governmental funding (leading to loss of governmental revenues in the long term).
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