Below are examples of services we can provide to assist with the sale of a business, which will help to maximize the after tax proceeds and create greater shareholder value.
TAX DUE DILIGENCE
We can assist in preparing the company for the bidders’ tax due diligence review. Our assistance generally includes the following:
- Review the 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.;
- Discuss with the client of the identified potential exposures, and where appropriate and feasible, recommend a strategy to remedy or mitigate the exposures;
- Response to questions posted by the bidders’ tax due diligence team; and
- Attend conference calls or meetings with the bidders’ tax due diligence team.
DIVERSITURE PLANNING AND IMPLEMENTATION
We can assist in evaluating the options to develop a tax-efficient strategy to sell the business, which may involve the use of “capital gains exemption” or “safe income strips”. We can also work with business valuators where required and assist in negotiating the sale terms which may include 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 and tax elections.