A number of key issues have to be appropriately addressed in case of a merger or acquisition transaction. Among others these issues are:
- The legal and tax due diligence of the transaction target (what company do we purchase or merge with?).
- Determination of asset or share transaction.
- Pricing & compensation (cash, shares or combination?).
- Financing (leverage) of the transaction.
- Safeguarding fiscal loss compensation.
- Making the transaction tax effective (e.g. make certain that the interest on the acquisition debt (if any) is tax deductible).
- Mediation with tax authorities.
- Legal documentation ((S)PA, Reps & Warranties, payment conditions, etc.).
- Follow-up and integration.
- Retention of the key people (management participation plans).
- Exit planning and strategies.
Through a combined effort of Taxture’s tax and legal team we can assist our private equity clients effectively and efficiently.