As global tax reform efforts cause some countries to tighten their cross-border tax laws unilaterally, companies need to have an integrated and comprehensive operational structure that aligns with strategic goals and helps to manage the worldwide effective rate.
- Create an integrated global structure that aligns with treasury goals and objectives of the business.
- Build and maintain a flexible framework for redeployment of foreign earnings, including potential reinvestment, future acquisitions, debt repayment or return to shareholders.
- Achieve improved liquidity and cash mobility.
M&A can add tremendous value and secure a firm’s market competitiveness. Successful companies optimize expected value of the acquisition with a clear capability-based strategy that quantifies potential risks and opportunities, empowered negotiations and expedited integration.
- Analyze and quantify tax assets, tax risks and contingencies.
- Assist with development of negotiation strategies.
- Facilitate deal expedience to reduce risk and business disruption.
When divesting a business, what happens if time runs short, the unexpected arises and value is leaked? To effectively plan a business sale and quickly return to re-focusing on other business units, fully prepare to take stock of your business objectively.
- Utilize carve-outs, sin-off and IPOs to plan, present, prepare and position a business for sale.
- Prepare tax reports to position the company or business to be sold.
- Reduce the tax cost for the seller while protecting tax attributes for the benefit of potential buyers, helping to enhance value.
To facilitate expanding the business and to reduce existing debt, some companies are raising new sources of capital by converting some or all of their operations into partnerships. These present opportunities for tax efficient distributions, flexible incentive compensation agreements and tax free rollover in acquisitions.
- Determine choice of partnership or contractual relationship.
- Structure formation of new partnership.
- Model projected taxable income and cash flow impact.
Private equity transactions require deal structuring techniques that allow for financing constraints, subsequent acquisitions/disposals and other transactions while increasing investor returns. Brokering these deals requires guidance that caters to this unique position in the market and the credit market environment. Perform due diligence and develop techniques to reduce identified tax risks.
- Plan for tax efficient debt servicing and refinancing or repayment.
- Explore structuring techniques that reduce up-front transaction costs and provide flexibility for subsequent disposals or reorganizations and exit or IPO planning.
- Advance private equity portfolio performance.
Bankruptcy and business recovery
Transactions involving bankrupt or insolvent corporations present a variety of complex tax issues. Companies in distress will need to explore increasing value in connection with a broad range of transactions.
- Assist debtor in resolving federal and state and local tax claims and audits.
- Provide recommendations for reducing tax consequences to creditors on potential restructuring.
- Identify and quantify potential tax attributes.