Did you know that for tax purposes, all deals are viewed as stock purchases or asset purchases, regardless how they are structured for corporate reasons? The structure of a deal – stock or asset – will have an impact on both buyer and seller. Understanding the tax implications of your deal is important because it may impact how you negotiate and your preferred deal structure. For example, as a buyer, you may need to pay a little bit more for the seller to agree to an asset sale.
There are many other tax considerations to think about so its is helpful to have a tax advisor who specializes in M&A involved early on in the process to ensure you are not overlooking any important issues. It can be beneficial to have a tax professional on board prior to drafting and signing the Letter of Intent. This way, your tax advisor can help you determine your preferred deal structure so that you can include this detail in the LOI, which will help you during negotiations down the road.
Learn more about Tax Considerations in Mergers and Acquisitions in our upcoming webinar presented by Tax Attorney Alexander Lee on July 21.
Date: July 21, 2016
Time: 1:00 – 2:00 PM ET