Below are examples of services we can provide to assist with the purchase of a target business, which will help to minimize potential tax liabilities and create greater shareholder value.
TAX DUE DILIGENCE
We can assist in reviewing the target company’s various tax filings of past few years to identify any significant potential tax exposures in income tax, GST/HST, payroll tax, foreign taxes and withholding tax etc. The findings from the tax due diligence may impact the decision to purchase the target’s assets or shares, or the negotiation of the purchase price.
ACQUISITION PLANNING AND IMPLEMENTATION
We can assist in evaluating the options of purchasing assets, shares, or possibly a hybrid of assets and shares of the target. Where appropriate, we can assist in structuring the financing to maximize the deduction benefits of interest expense on loans taken out to purchase the business. We can also assist in negotiating the purchase and structuring creative arrangements such as earnouts, sale and leaseback, management buyouts, and share-for-share exchanges.
Throughout the process, we work closely with legal counsel to implement the tax planning with the required legal documentation. We can also prepare all the required tax filings.
POST-ACQUISITION REORGANIZATION AND INTEGRATION
We can assist with post-acquisition reorganization for integration of business operations and/or simplification of corporate structure.