To a significant extent the key issues of a private equity investment are similar to an ordinary merger and acquisition. Consequently, the following matters have to be appropriately addressed:
- The legal and tax due diligence of the M&A target.
- Safeguarding fiscal loss compensation.
- Mediation with tax authorities.
- Legal documentation ((S)PA, Reps & Warranties, payment conditions, etc.)
- Exit planning and strategies.
In comparison to a 'normal' M&A transaction, specific care needs to be taken with regard to the following issues:
- Financing (leverage) of the transaction.
- Retention of the key people (management participation plans).
- The implementation of carried interest and the definition of the waterfall.
Through a combined effort of Taxture’s tax and legal team we can assist our private equity clients to make certain that things are addressed in the most relevant, effective and efficient way possible.