Tax plays a key role in maximizing value on divestments as new tax policies are reshaping the tax profile of businesses.
Our 2018 Global Corporate Divestment Study shows 87% of companies are planning to divest in the next two years, compared with 43% in 2017. Here, we focus on the key tax findings from our survey.
1. Tax is increasingly a part of strategic decision-making
More than ever, macro risks are affecting companies’ ability to divest and achieve their desired valuation. Nearly one-third of executives are seeing an increase over the last 12 months in tax challenges impacting the ease of executing deals. Understanding the tax dynamics of any divestment is increasingly becoming a part of the strategic decision-making of whether and how to divest, rather than being a point of detail in the execution once the decision to divest has been made.