How to structure the deal to indemnify yourself from tax liabilities of a investee ?
In emerging markets, private equity funds will often encounter potential investees that had significantly underpaid CIT over the years. I am wondering is there any common deal structure or a special deal structure PE funds used to indemnify themselves other than using indemnity clauses. I understand there could be many possible structures depending on the laws of investee's country. But, please share all structures that can used in any country you know. If the investee is asset-light, would setting up a new entity and transferring assets of investee's into the new entity viable? Please also recommend literature/textbooks on deal structuring.
Dicta assumenda repellat aut qui corporis rerum. Non explicabo repellendus libero rerum ex omnis. Veniam iure eligendi dolor rerum numquam. Sapiente dolorum inventore aliquid. Officiis tempora iure cupiditate et aut molestias.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...