Legal entity readiness
Are you balancing Day 1 preparation with long-term tax efficiency?
Acquisitions of divisions and lines of business have heated up as companies and investors seek competitive advantage in an uncertain economy.
Gaining long-term tax efficiency in an acquisition
Whether you are a strategic buyer seeking to increase geographic footprint or a private equity investor, an important success factor is likely to be the execution of a tax efficient legal entity structure to acquire businesses.
Too often, buyers piece together legal entity needs in a hurry—and in a vacuum—creating a structure that is cumbersome and costly to maintain. But having the right legal entity structure on “Day 1” can provide opportunities to increase company and deal value.
This article examines some common challenges, risks, and misconceptions related to establishing a legal entity structure, as well as suggestions for developing a detailed plan that navigates the multitude of interdependencies to address short- and long-term transaction goals.