green abstract circular design

Services

Post-Merger Integration Services for Tax

Successfully navigating merger tax implications

Mergers and acquisitions are executed frequently, but not always efficiently. Our experience has shown that tax departments are a critical component of the M&A integration process. Deloitte’s post-merger integration services help design and build the tax structure of newly merged organizations to advise on identified synergies and solution gaps and establish tax-efficient operations moving forward.

Explore content

The importance of tax integration: Neutralizing the minefield

Tax considerations affect nearly every aspect of your business. Businesses going through a merger often disregard the tax department. Deloitte’s own M&A research, which we’ve gathered since 2014, shows integration gaps are among the top reasons why M&A transactions do not generate the expected value.

Without tax involvement in the M&A integration program, sooner or later a post-integration tax mine will likely be tripped. Whether it is a spike in the worldwide effective tax rate due to the new tax-inefficient combined supply chain structure, an unforeseen, newly created exposure to additional sales tax nexus, a potential clawback of an existing property tax incentive, or resource constraints in the tax department, the post-merger integration minefield is rife with potential tax hazards.

With proactive and regular tax department participation, not only can the field be swept for tax mines, but you can also help the company explore ways to enhance previously announced synergy estimates, as well as tax operating model efficiencies.

Structuring alternatives to unlock value
Private equity investors: Rethinking strategy in the current economy

Developing your post-merger integration plan

Planning for post-merger integration allows a tax department to identify and anticipate tax issues and opportunities from the transaction and its aftermath. Our process, tools, and templates address operational and technical M&A integration tax challenges.

Close
The transaction
You need strategies to analyze the worldwide tax impact of the transaction itself and evaluate the tax profile of both buyer and target on a post-transaction basis.

You need strategies to analyze the worldwide tax impact of the transaction itself and evaluate the tax profile of both buyer and target on a post-transaction basis.

These include:

• Transaction implementation, legal entity stand-up, and tax day one readiness

• Tax basis; E&P; and section 382, 383, and 384 analysis and computations

• Model short-period impact to tax attributes and tax provision (next-day rules)

Read more
Close
Tax department operations
It’s critical that prospective regulatory and tax compliance registration and filing requirements are timely met. It is also critical to determine prospective tax department structure.

It’s critical that prospective regulatory and tax compliance registration and filing requirements are timely met. It is also critical to determine prospective tax department structure.

Top of mind must be:

• Acquisition accounting, including opening ASC 740 balance sheet, updates to ASC 740-30 (formerly APB 23), and analysis of uncertain tax positions

• Development and testing of interim and annual tax processes to meet financial statement requirements

• Timely meet prospective tax regulatory and compliance requirements, including short-period

Read more
Close
Business process changes
Understand business process changes that may occur, and get timely tax input into changes while proactively identifying synergy changes that have tax implications.

Understand business process changes that may occur, and get timely tax input into changes while proactively identifying synergy changes that have tax implications.

Post-merger, you should:

• Proactively identify tax synergies by participating in cross-functional integration team (IMO)

• Simplify legal entity structure to align with the future integrated business model, update tax-efficient profile, and enable SG&A savings

• Evaluate IP or supply chain planning opportunities

Read more

    Scalable support models

    • Advisory support
      Strategic planning to assist the tax department for select work stream(s)
    • Cosourcing support
      Support tax department in creating broad-based task-level work plans for all tax work streams
    • Broad-based support
      Support tax department with detailed integration planning and execution, with a focus on aligning the tax function with business goals

    Back to top

    This section is an infogram

    This message and the space it occupies will not be displayed when viewing this page either in Live, Preview, or "View as published" modes

    Why Deloitte?

    Back to top

    Check out our

    Post-merger integration perspectives

    Explore content

    M&A Tax Talk

    Insights on trends and recurring matters regarding US tax topics in M&A transactions

    Deloitte’s take on equity

    Re-aligning incentive compensation strategy in a downturn