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?
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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.
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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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