Mergers and acquisitions - Tax

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Mergers and acquisitions - Tax

All transactions—whether mergers, acquisitions, joint ventures, equity investments, or divestitures—raise complex issues regarding potential tax risks and provide opportunities to implement practical strategies to improve tax efficiency and certainty. When deals involve companies with global operations, the range of issue to consider is compounded. Companies need an adviser with deep experience across a wide range of issues in multiple jurisdictions. Deloitte offers support in all aspects of mergers, acquisition or disposition transactions, including due diligence, structuring, modeling, financing, post-merger integration and reporting. Deloitte can assist in effectively navigating the myriad of tax, accounting, regulatory, cultural, and labour issues that arise in a transaction and helps companies to fully realise the anticipated post-integration benefits.

Vendor assistance and exit planning (including flotations)

We can advise on both the commercial aspects and tax implications of exit structuring (partial or full). This may include:

  • Preparation of vendor due diligence reports or fact books, which can be used by potential acquirers.
  • “Exit readiness” of the group and, where necessary, advice on preliminary group reorganisations to facilitate an exit.
  • Vendor assistance such as assisting with the selection of documents for the virtual data room, pricing mechanisms and tax indemnities/warranties.
  • Exit funds flows.

Where an exit is through a flotation, we can provide advice on an optimal structure for the flotation from a tax perspective, whilst ensuring the key commercial objectives are the drivers for the flotation structure. We may also advise on restructuring steps, as required, as well as carrying out the more formal tax components of the Reporting Accountant role.

Post-transaction services

The completion of a transaction is just the beginning of an investment journey. For mergers, acquisitions and separations, our M&A and RS teams provide a holistic approach to post-transaction services, to help a business’s tax function address their immediate requirements as well as longer term objectives.

Based on our understanding of the transaction and the underlying business, we swiftly bring in appropriate specialists to help address any tax issues identified as part of the transaction. We can also assist with post-transaction business integration, working with internal tax functions to ensure smooth transitions to meet the requirements of the new owners.

Restructuring services

We work collaboratively with financially challenged companies to analyse relevant tax issues and financial considerations, assisting in evaluating restructuring options and exploring opportunities that may address tax and financial burdens, while building a framework for the future.

Our professionals have extensive experience working with debtors, creditors, and creditor committees with respect to both consensual and non-consensual restructurings. We also work with other professional advisers to pursue appropriate outcomes for all parties.