The hidden tax value in divestitures | Deloitte US | Tax

Perspectives

The hidden tax value in divestitures

Why looking beyond the deal may be valuable

The decisions you make about the separated companies’ operations will be shaped by many business considerations other than tax.

Tax-saving opportunities

If you’re planning a spin-off or carve-out, you know how important tax considerations can be to realizing the full value of your transaction. But did you also know that a separation may offer significant opportunities to improve the ongoing tax efficiency of each separated business after the transaction closes—and thereby increase the transaction’s long-term value? Our experience suggests that many divesting companies tend to overlook this group of tax-saving opportunities.

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