Posts Tagged ‘M&A’
M&A Dealbreakers: Uncovering Potential Fraud Before It’s Too Late
At a glance: Understanding the risk: M&A transactions require extensive due diligence, but the customary due diligence process does not always identify the full scale of potential fraud and regulatory compliance risks. Know the stakes: Uncovering potential fraud too late can lead to complicated legal disputes and may be detrimental to your company’s reputation. Be proactive: Don’t close…
Read MoreCross-Border M&A: Section 338(g) Elections After TCJA
At a glance The main takeaway: Subject to certain requirements, U.S. corporate taxpayers who acquire stock of a foreign corporation often make a section 338(g) election for advantageous U.S. federal income tax outcomes. Impact on your business: A section 338(g) election has different implications for buyers and sellers after the Tax Cuts and Jobs Act (TCJA). Next…
Read MoreRestructuring and Turnaround Advisory Services for Creditors
When and How to Share Data in an M&A Transaction
If you’re in the finance sector, you’re likely familiar with Eugene Fama’s Efficient Market Hypothesis (EMH), an investment theory whereby share price reflects all available information. The more transparent the information, the more closely the transaction price reflects fair value. In this ideal world, neither party holds an advantage over the other, and consistent excess…
Read MorePrivate Equity and Venture Capital Firms Are Still Digesting Trump Tax Reform
The headlines leading up to passage of the new tax law were ominous. Changes requiring private equity and venture capital funds to hold investments longer to get a lower capital gains rate on carried interest — coupled with new caps on interest deductions — would create “prompt upheaval,” The Economist declared. Methods for valuing buyout…
Read MoreOn Tax Due Diligence, 5 Details You Shouldn’t Overlook
Before engaging in an M&A transaction, you must conduct the proper tax due diligence. Here are some tips on how to maximize the value of your transaction.
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