M&A Transactional Tax

Managing the tax implications of a transaction can be the most significant factor of any merger or acquisition

Overview

M&A Transactional Tax

When deciding to enter into a transaction, several factors including the tax implications need to be taken into account. Generally, mergers and acquisitions can have significant tax implications for both the acquiring and the acquired company. Managing the tax implications of a transaction can be the most significant factor of any merger or acquisition. When two companies merge, for example, their assets and liabilities may need to be reorganised to form a single tax entity. This can have tax consequences, such as the need to pay:

capital gains tax (CGT) on the disposal of capital assets;

transfer taxes for shares and immovable property; and/or

value added tax (VAT) for certain inventory and assets.

Tax strategy and planning offers the chance to take advantage of timely tax benefits that can result in significant financial savings. Finding those tax savings opportunities and effectively utilising them necessitates in-depth familiarity with the complicated tax environment surrounding mergers and acquisitions, particularly in light of recent tax reforms pertaining to tax avoidance schemes or arrangements. As part of the mergers and acquisitions design and implementation process, both parties must carefully consider these tax implications. We assist you with every step of the transaction, including strategy, due diligence, and integration after the deal closes. Overall, the type of restructuring transaction that is most appropriate will depend on the specific circumstances of the company and the challenges it is facing.

Mergers and Acquisitions

Transactional Tax

Every transaction and investment benefits from tax planning, as it provides a sense of security while minimising financial risk.

Overall, the type of M&A transaction that is most appropriate will depend on the specific circumstances of the companies involved and the goals they hope to achieve through the M&A process.

There are several types of restructuring or turnaround transactions that companies may pursue in order to improve their financial performance and address challenges they are facing.

Our team gives practical and innovative solutions to complex tax structuring issues related to the full range of M&A transactions.

We assist you in problem solving, generating the proposed value from the transaction, and maintaining a competitive advantage.

To provide comprehensive M&A advice, we work with your existing lawyers or through our partnerships with commercial law firms.

Since tax structuring is complex, and tax legislation is constantly changing, the transaction's implementation must match the form as well as contractual framework.