Geopolitical uncertainty and rapid-pace technology changes are making portfolio and divestment strategy more critical than ever. Tax, an increasingly impactful aspect of geopolitics, is also becoming a disruptive factor. While sellers often think of tax issues as a risk to value, sellers are increasingly considering tax as a way to maximize sale price. Here we share tax-related insights from our Global Corporate Divestment Study.
1. Communicate tax upsides
Given the rapidly changing global tax environment, it is increasingly difficult for buyers to identify tax value and opportunities from the outside. The most successful sellers look at their business through the eyes of a buyer, proactively highlight potential tax upsides and price the business accordingly. Highlighting tax upsides tops the list of initiatives that companies didn’t undertake but wish they had.