A summary of KPMG’s Mergers and Acquisitions Tax practice can help businesses with cross-border M&A and other transactions.
A summary of KPMG’s Mergers and Acquisitions Tax practice...
KPMG's Deal Advisory, M&A Tax practice offers a range of M&A tax services to corporate and private equity investors to help with domestic and cross-border transactions.
Our services include:
How we can help your business
With a strong focus on transactions with a private equity background, KPMG’s M&A Tax professionals are commercially minded and deal hardened — they know how to identify and advise on the material tax exposures in a transaction and to develop deal structures that appropriately address the tax implications. Working on transactions day-by-day, they are process-driven and understand the mechanics of acquisition and disposals in a competitive environment.
Why tax-efficient mergers and acquisitions matter
Companies with global ambitions cannot afford to ignore the opportunities for possible growth offered by mergers, acquisitions and disposals. But if these transactions are to create real value, it is important that the tax implications of each deal are dealt with from the onset. This is especially important in cross-border deals, where differing regulations and business cultures need to be reconciled in order to reveal the risks and opportunities of a transaction.
Similarly, private equity seeking to increase return on investment cannot afford to ignore tax. Recent trends show that M&A transactions have become more international and deal volumes have increased tremendously. Highly-leveraged transactions allow for big ticket deals, in particular within private equity market.
Getting the timing right
Running an M&A process means coordinating many different work-streams within a very strict timeline. In the auction processes, there is little flexibility surrounding bid deadlines. Deadlines are short to keep management attention to an acceptable minimum. Valuable time can be lost just trying to organize your deal team. Tax due diligence, international acquisition structuring and modeling tax in the acquisition target's business forecast should be addressed immediately.
M&A activity has been relatively tame the past few years, but acquisition momentum is expected to build in 2015, says a new survey by KPMG and Mergers & Acquisitions Magazine.