Tax due diligence (vendor/buyer)
A tax due diligence plays a critical role in any M&A transaction.
Vendor tax due diligence aims to address tax issues and concerns that may be relevant to even the most demanding purchaser. It is an in-depth report on the ”tax health” of the company that is being sold. The vendor due diligence report is made to all bidders and relied upon by the acquirer.
Buyer tax due diligence aims to identify and quantify actual and potential tax liabilities that have not been taken into account in the financial statements of the target. It will help the buyer to see a clear picture of target’s current tax position. It is critical to making right decisions about managing transaction risk early in the process.
Your situation as a vendor:
- You need an independent view of tax compliance;
- You wish to obtain an independent view of the tax contingencies and positions;
- You want greater control over the sale process and the timing of sale;
- You need help to secure a higher price of the business.
Your situation as a buyer:
- You need better understanding of the target business issues;
- You want to gain a clear picture of the target tax compliance and tax position;
- You want an insight into actual and potential tax liabilities;
- You want identification of tax risk areas.
Our services:
- Assistance in understanding industry issues that affect the deal and their tax implications;
- Support in understanding of the target’s business operations by reviewing financial data and tax returns;
- Clarifying the tax positions of the vendor/target and evaluating potential tax exposure and opportunities;
- Identifying key tax issues and possible deal-breakers;
- Quantifying tax exposure and making negotiation recommendations;
- Advising how to manage tax risks associated with the transaction.
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