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Acquisition tax structuring

Structuring a deal in a tax-efficient manner can result in significant tax savings and reduce financial risk. We can advise you on the most appropriate tax structure to facilitate the transaction, accommodating any lender or seller preferences.

An effective acquisition tax structure should optimise the tax position of all stakeholders, including investors, lenders and management.

What is M&A structuring?

What is M&A tax structuring?

M&A tax structuring is the process of designing and implementing a tax-efficient structure for a transaction. It involves analysing the tax implications of different deal structures and providing the optimal solution which meets your needs.

Why is M&A tax structuring important?

M&A tax structuring is critical to achieving a successful deal because it can impact the value, timing and risks of the transaction. A well-structured deal can result in significant tax savings and reduce financial risks. On the other hand, a poorly structured deal can result in unexpected tax costs, delayed closing, and potential disputes with tax authorities.

Our M&A tax structuring advice service

We have a team of experienced tax professionals who can provide you with strategic and practical advice to help you structure your deal in a tax-efficient manner. Specific areas where our expertise is most often required include:

Minimising future tax costs
Debt financing including the tax deductibility of finance costs and withholding taxes
Management tax considerations including facilitating tax efficient reinvestment into the acquisition structure and minimising employment tax consequences on any sweet equity subscriptions or ratchet arrangements .
The availability of Group relief and chargeable gains group with Target
Optimise the VAT recoverability of transaction fees
The tax deductibility of transaction fees
Stamp duty payable on the transfer of the Target’s shares based on the consideration structure
Deferred consideration and earn-out structure to mitigate against employment tax risks.
Tax efficient cash repatriation to the Buyer group to service debt and deferred consideration payments
Design of corporate structure to allow for future expansion and acquisitions.

Our approach

Our approach to M&A tax structuring is collaborative and tailored to your specific needs and objectives. We work closely with your legal and financial advisors to understand your transaction goals. Our deep expertise in tax law and our understanding of the regulatory landscape means we can provide you with clear, concise, and actionable advice that helps you make informed decisions.

Get in touch

If you want to optimise your tax position and maximise the value of your transaction, contact us to learn more about our M&A tax structuring service. We offer a free consultation to discuss your needs and provide you with a customised quote. Let us help you structure your deal in a tax-efficient manner and achieve your business objectives.