Every transaction has tax implications, whether it’s an acquisition, disposal, refinancing, restructuring or initial public offering. Our extensive cross-border experience, strong international network and broad commercial focus can help you identify the critical strategic tax considerations and explain them in the context of your transaction and future plans for the business.
What EY can do for you
We help you effectively navigate the many tax issues that arise across the transaction life cycle to ensure they are factored into your valuation considerations. Our global network of professionals can help you with:
- Tax due diligence to identify and manage both historical and potential future tax exposures
- Assistance in developing an optimal acquisition structure aligned to the commercial objectives of the transaction and the investment thesis
- Tax modelling of post-deal tax liabilities and assets in business models
- Post-deal services, from assessing day 1 readiness and addressing immediate concerns through to advising on a variety of tax issues that arise post-transaction, including regulatory, tax strategy and compliance matters and operating model effectiveness
- Assess “Exit readiness” of the group and provide advice on pre-transaction structuring to facilitate an exit
- Help you identify and address tax issues early in the process to enable you to prepare for and resolve matters in a way that reduces the risk of negative value impacts
- Evaluate alternative transaction structures with you in advance and their likely compatibility with potential buyers
- Assist you in the articulation to potential buyers of both tax risks and tax assets, with a focus on the impact on post-tax sales proceeds
We advise you in implementing restructuring transactions that balance the material tax considerations with your overall business objectives.
- Identifying areas where tax may add value, including help maximizing the use of tax attributes and considering the availability of tax exemptions
- Assessing the tax impact of potential business decisions, including divestments, group reorganizations, the restructuring of third party and inter-company debt, or the refinancing of existing liabilities
- Helping you understand the tax impact associated with realigning legal and operating structures
We collaborate with your tax, finance, treasury and legal departments as well as the board of directors to understand your global capital and tax structure to help:
- Implement an effective capital structure and collateral package
- Analyze and structure the tax aspects of new financings and refinancings, which may impact the overall cost of capital
- Develop appropriate structuring to effect debt push-down
- Determine the deductibility of interest, given local interest restriction rules
- Navigate your understanding of cross-border tax issues (such as currency/exchange control and withholding tax considerations on repatriations)
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