Tax and structuring in an M&A deal
Hi guys,
I have a few questions pertaining to Working capital and taxes. Hope you can help out!
- how do you deal with a situation where seller has a few large multi year prepaid transactions in the pipeline, most to close around same time as M&A signing?
- how do you check if target company is current in terms of tax payment?
how do you take tax liabilities in consideration in an M&A deal as working capital target doesn't take into consideration taxes? (right?) say you buy a company in July, seller walks out with the cash after delivering the working capital target then you get hit by corporate tax at the end of the year.
what are the ways / are there resources available to see how to best structure a deal (both tax and asset purchase) that would benefit the seller from a tax perspective? (for asset purchase, I believe buyer has an interest in allocating purchase price to depreciable assets, the opposite for the seller)
Thanks!
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