Domestic mergers and acquisitions

The M&A transaction process can reward stakeholders with increased value while opening new growth opportunities. For the acquiring company, however, tax issues in mergers and acquisitions may erode some portion of that value. Mergers and acquisitions tax considerations can also include spin-off tax implications, amalgamation tax implications, joint venture tax reporting issues, and other tax issues that may be beyond the acquiring company's scope to resolve.

KPMG’s experienced team of M&A tax professionals helps clients identify, analyze and resolve tax issues that inevitably arise during the M&A transaction process. We combine professional experience with in-depth, up-to-date knowledge of the Canadian tax planning and compliance environment. Our professionals employ industry-leading technology while building face-to-face relationships. We will work with you to help ensure tax issues in domestic M&A deals are effectively dealt with for your organization and its stakeholders.

Global mergers and acquisitions

KPMG in Canada works alongside the M&A specialists in KPMG member firms to understand how the impact of tax considerations in mergers and acquisitions can differ from one country to the next. KPMG’s network of member firms’ international footprint helps enable our local M&A transaction service specialists to leverage KPMG tax professionals from different service areas, helping clients understand processes, avoid pitfalls and seize opportunities related to often complex legal issues in cross-border mergers and acquisitions.

Key services

KPMG’s M&A transaction service specialists bring extensive deal knowledge and experience to a wide range of tax issues affecting both domestic and global mergers and acquisitions. Here are some of the M&A transaction services we provide to our clients:
  • Tax due diligence: For an M&A deal to succeed, the acquiring company must identify the level of tax exposure and explore mitigation options while maintaining a clear focus on risk assessment. KPMG’s M&A professionals will report on the subject organization’s tax attributes and can help prepare tax documentation for use in the due diligence process.

  • Structuring an acquisition or disposition: KPMG provides knowledgeable advice on the spin-off tax implications of individual acquisitions, joint ventures, and divestments to help design the most tax-efficient deal structures. KPMG’s tax planning professionals work with you to formulate an effective and tax-efficient approach to structuring M&A deals.

  • Contract assistance: KPMG’s industry-leading contract assistance and compliance services can help clients reduce the risk of unexpected tax exposures. Our experienced M&A transaction service professionals will determine if tax issues emerging from due diligence reports are represented accurately.

  • Tax modelling: KPMG provides specialized assistance in evaluating companies for mergers and acquisitions, including modeling the tax effects of transactions, assisting in tracking the cash and non-cash steps in funds flow, and pinpointing likely tax issues through modeling of the target business' future tax position.

  • Vendor assistance: KPMG’s skilled M&A professionals can assist in the preparation of vendor-side documentation and tax planning advice on the spin-off tax implications of the sale of a business, including pre-deal reorganization measures and settlement of historic tax risks. We also offer assistance and advice in the areas of pre-sale analysis, pre-sale due diligence, and carve-outs (if any) of the business for sale.

  • Acquisition cost recovery analysis: By analyzing associated deals, KPMG helps clients mitigate after-tax deal costs, resolve lingering tax issues, and take advantage of tax benefits available for mergers and acquisitions.

  • Post-deal integration: A successful post-acquisition integration model is key to realizing and maximizing the value of any M&A deal. During the first 100 days of a deal, KPMG’s M&A transaction services professionals will identify, prioritize, and tackle common post-completion issues such as systems rationalization, retention of key staff, and building a management team.

Frequently asked questions

Businesses and organizations involved in complex M&A deals and transactions may struggle to manage federal and provincial corporate income and indirect (sales) taxes effectively. KPMG’s tax service professionals can help you understand new tax laws, respond to relevant legislation, and resolve tax issues in mergers and acquisitions that could reduce your tax burden.

KPMG’s domestic and global M&A tax professionals have the experience and skills to navigate through complex M&A deals and their accompanying tax issues. From evaluating companies for mergers and acquisitions to determining an accurate post-acquisition integration model, KPMG can help you design a transaction that efficiently manages the tax attributes while remaining consistent with your business objectives.

KPMG offers a wide range of tax services that encompass domestic tax planning, corporate tax issues, and identifying tax benefits available for mergers and acquisitions. In addition, we offer knowledgeable advice on tax regulation and the legal issues in cross-border mergers and acquisitions. Our experienced tax planning and legal specialists work with our clients to provide tax strategies and tax advice tailored to fit the needs of organizations dealing with the Canadian tax system of today … and tomorrow.

Contact a KPMG M&A Transaction Services professional today to learn more.

Connect with us

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Connect with us