Transactional Tax Issues

Transactional Tax Issues

All for-profit businesses have a significant silent partner, the IRS.  As a result, when undertaking a transaction, it is important to understand the tax implications of the deal prior to closing so that there are no surprises and total taxes paid are minimized.

The amount of tax paid in a transaction will be determined by many factors including:

  • The overall structure of the deal
  • The tax positions taken by the various parties before and as part of the transaction
  • The amounts involved
  • The current tax rules and rates

Generally, the tax positions of the parties will need to form part of the overall negotiation, as whatever positions benefit one party will almost always be detrimental to the other.

Our Merger & Acquisition services came out of our involvement in the tax structuring of 100s of transactions, both on the side of sellers and buyers.  As a result, we understand the tax implications of both sides, and while we always advocate for our client, we also ensure that the tax considerations of the entire deal are being considered to ensure the best structure is promoted and negotiated.

Please contact us to learn more about how careful tax planning can impact your next transaction.

Helpful links:

Alliance of Mergers & Acquisition Advisors
BiggsKofford’s Blog