Mergers & Acquisitions tax

Transactions are planned and executed so that the post-deal legal and financial structure effectively supports operational activities while being tax efficient. Transaction structuring considers taxation during the investment and ownership periods, as well as potential future sales of the acquired entity. Pre-sale tax structuring typically focuses on separating the target company from the seller’s group in a tax-efficient manner.

Additionally as part of the tax structuring, we work with clients on other transaction related matters such as retaining key personnel.

By modelling anticipated tax expenses, clients can complement business forecasts, understand the impacts of taxes on cash flows, and evaluate from tax perspective whether the objectives of the transaction can be achieved.

During a restructuring, it is vital to ensure the new corporate structure operates tax effectively. Our advisors analyze tax costs related to restructuring and model the post-deal tax position.

Using the KPMG funds flow model, we can deliver not just the usual acquisition phase plans, cash flow models, and payment instructions but also bookkeeping entries and balance sheets at the company level for entities involved in transactions.

The model offers an accurate picture of closing transaction cash flows, helping stakeholders like financiers assess the financing needs of the restructuring at the individual company level.

We assist buyers in smoothly integrating their acquired company or business operations and efficiently merging the acquired functionalities with existing ones while retaining possible tax benefits. Our focus is on ensuring tax effectiveness in the integration process.

If post-deal restructurings, such as mergers, are needed, we provide comprehensive planning for tax-efficient solutions as well as implement the plans the with our legal colleagues.