When there is a cross-border merger and acquisition there are additional complexities to plan for, typical acquisition planning in one country may be different than in another country, and the resulting tax implications can be significant. We have represented both the acquiror and target in a number of cross-border acquisitions and getting the right result requires a careful analysis of the tax implications involved. What may seem like a very small detail may have very serious tax implications that greatly impacts the result of the acquisition for either the acquiror or target. […]
Tag: Mergers and Acquisitions
Be Careful When the Terms of An Acquisition Seem Too Good to be True – They Usually Are
When there is a cross-border merger and acquisition there are additional complexities to plan for, typical acquisition planning in one country may be different than in another country, and the resulting tax implications can be significant. We have represented both the acquiror and target in a number of cross-border acquisitions and getting the right result requires a careful analysis of the tax implications involved. What may seem like a very small detail may have very serious tax implications that greatly impacts the result of the acquisition for either the acquiror or target. […]
Target Company: Be Careful in Changing its Tax Status Preacquisition at the Insistence of the Acquiror
Target companies in mergers and acquisitions are often directed by the acquiror to change its tax classification preacquisition for U.S. tax purposes. There are several reasons that an acquiror may request the target company to change its tax classification. For example, the acquiror may not want an entity taxed as a c-corporation in its portfolio of companies. […]
Membership Interest for Services and Purchaser’s Tax Liability
The after-tax proceeds of the sale of a business is of the utmost importance to sellers. Too often sellers agree to holdbacks or a reduction in purchase price for alleged tax issues raised by the purchaser during due diligence where the purchaser bears no actual risk. […]
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