EY’s Global M&A tax survey and trends: the tax director’s search for value 2012

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We are pleased to announce the release our third annual review of trends affecting tax aspects of corporate M&A. The report, Global M&A tax survey and trends: the tax director’s search for value,is based on responses from tax directors at 150 of the world's largest companies across 14 major markets.

During this time of continued economic uncertainty, tax directors are having to think more strategically about the value that tax can deliver in the M&A space. There is an increasing focus on post-deal benefits and how these can be included within a valuation and then delivered. The tax directors interviewed are also addressing the potential impact of greater risk in the business world generally and there is a steadily increasing focus on putting appropriate processes and controls in place in advance of a deal so that tax issues and opportunities can be identified and handled effectively.

Our report includes some guidelines tax directors can follow to help deliver value in the current market.  These are grouped in the key areas of:

  • Creating robust processes that clearly identify and mange risk
  • Ensuring the early involvement of tax
  • Thinking differently to find new sources of value
  • Looking beyond the immediate to consider synergies and restructuring
  • Navigating the risks of emerging markets

The 2012 survey builds on a number of themes from last year and it remains clear that earlier and closer collaboration between tax and deal teams and taking a broader view of the tax impact a deal can have on a company's operations are key to realizing transaction value.