I have a company that is moving a few things offshore to reduce our tax liability in the US. We basically have no US employees anyways. Would this cause problems when we go to secure debt later?
The US entity will literally just be for payment processing/taking revenue in, an mx entity for manufacturing and then things HQd in Malta.
If I wanted to get debt for this business, would this be a problem for private credit funds?
By the time the transition is done we will be at around $50m topline and 20% EBITDA. So still very much so LMM.
Also, would this be a problem for an acquirer?
Everything is super by the books btw with name brand advisors.
This is largely a non-issue. You'll find some lenders who will ask more questions, but it's not going to be a deal-breaker.
Commercial banks won't like this, but direct lenders won't have a problem.
Malta is a little unusual though. Bermuda, Jersey, Guernsey, and Ireland are more common.
Very helpful. Thank you! Using malta because of their tax treaty with Canada. Slashes my taxable income lol
Hi - curious how did you structure your co in multiple jurisdictions?
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