Mergers and acquisitions – tax aspects
Every merger, acquisition, joint venture, capital investment or divestment operation involves complex matters, thus requiring the dedication of experienced professionals. It is specially true when these agreements involve companies with global operations.
Deloitte can assist your company through your tax, accounting, legal, regulatory, cultural and labor challenges, managing compliance risks and improving returns.
- Business structuring and due diligence;
- Sale of companies;
- Post-transaction services;
- Company restructuring and liquidation;
- Analysis and review of acquisition contracts.
We help analyze potential tax, accounting, labor, operational, and system issues before going to the market. We work with clients to analyze whether the transaction structure is in line with company strategy, and help quantify the strategic value of tax risks and opportunities. We perform pre-sale due diligence including analysis of tax financial and regulatory matters, review of compensation-related agreements, and analysis of information quality. We also know that the tax considerations of a deal can be simple or complex and will vary depending on the nature of the deal. We can assist and advise clients regarding estimated gains and losses, analyze the allocation and preservation of tax attributes, and explore options for clients’ requiring cash proceeds from the deal.
Post transaction services
For both acquisitions and separations, our teams provide a holistic approach that can help tax departments address their Day 1 readiness needs as well as its longer term requirements. This includes advising on a variety of tax issues, such as regulatory, tax strategy and compliance matters; simplifying corporate tax structures, especially where overlapping legal entities arise; harmonizing accounting methods; and merging tax systems, processes, and departmental personnel. We work with the tax function to explore tax matters that arise as part of the company’s overall merger synergy objectives, whether those arise in supply chains, sales force organization, back-office operations, or other areas.
Restructuring and bankruptcy services
We work with financially challenged companies by analyzing relevant tax issues and financial considerations, assisting in evaluating restructuring options, while building a framework allowing for future tax and operational efficiencies. Our professionals have extensive experience working with debtors, creditors, and creditor committees with respect to both in–court and out-of-court restructurings. We also work closely with clients’ other professional advisors.