Adding value to your business

The overall economic environment around M&A activity as well as capital raising is dynamic and ever changing. Coupled with this, India is seeing an evolution of its tax and regulatory environment in these areas with a number of best practices across various laws around the world finding their way into the Indian legal framework. M&A and PE transactions as also developing holding structures for founders and family offices are matters that are high stakes and have lasting impact over protracted periods of time.

We, at KPMG in India, help avoid pitfalls and unpleasant surprises – not only in the context of current law, but also in terms of identifying trends in law that may have an impact going forward. We work on structures in a manner that the overall IRR can be enhanced, such that there is greater ability to extract value in these situations. Thus, in addition, to helping control potential tax costs and risks and proposing actions or methodologies to aid in reducing negative effects on deal value, we also try to identify potential tax saving opportunities to help enhance the deal value and propose actions to capture those opportunities.

Under our strategic initiative ‘One M&A’, we bring together a thorough end to end portfolio of deal related services across corporate finance, transaction services, deal strategy, valuations, special situations, transaction tax, and structuring and post deal services. Our M&A/PE tax and family office vertical works in sync with other deal advisory service lines under one roof to help ensure smooth completion of the transaction.

Our offering encompasses a broad range of tax and regulatory services including the following.

  • Acquisition/divestment Structuring
    • Consultation to determine and shape the immediate and long term tax impact of the client’s acquisitions/divestments. Advising on acquisitions through leveraged/management buyouts
  • Overseas listing and value enhancement
    • Advisory from a Tax and regulatory standpoint to clients looking for access to global markets
  • Tax diligence and health check ups
    • Apprise clients of the potential risks and benefits associated with a specific transaction
  • Transaction advisory
    • Providing negotiation support and offer structuring and documentation review for private equity, strategic or financial deals
  • Corporate and internal structuring
    • Providing tax and regulatory efficient offerings for internal restructuring, promoter holding restructuring, corporate restructuring exercises, which can be in the form of mergers, demergers, sale of business/ assets, sale of business/assets/shares, capital reduction, buyback, rights issue, family arrangement, succession planning etc
    • Assistance in implementation of transaction and post deal advisory and support
  • Private Equity
    • Advising on fund structuring and operating protocols
    • Assisting in setting up the fund structure and ongoing compliances.
  • Family office
    • Working with family and promoter driven businesses and helping them in the areas of succession, next generation handover, governance, growth, exit strategies and wealth preservation.

Our approach - From Ideation to Implementation

Discussions and Conceptualization

  • Understanding the detailed objectives and gain an understanding of the long-term approach
  • Understanding of the management concerns
  • Provide a trusted approach
  • Conduct a SWOT analysis
  • Pre-deal evaluation.

Due diligence and Transaction structuring

We conduct tax due diligence, provide negotiation support and offer structuring and documentation review for private equity, strategic and financial deals

  • Assist in adopting a global approach to uncover tax risks and in identifying existing exposures in the various approaches
  • Reviewing and considering tax provisions in contracts
  • Review business plans from a tax and regulatory perspective
  • Analyzing the industry trends and evaluating feasibility of the available options
  • Formulating possible structures based on desired business objectives which are tax optimal and compliant from a regulatory perspective
  • Assist in obtaining regulatory approvals for establishing the transaction structure.

Execution and implementation assistance

  • Execution
    • Transaction implementation
    • Contract assistance from tax perspective
    • Negotiation support in completion phases
    • Thorough project management
    • Foster smooth tax  consolidation through utilization of accumulated tax losses and fiscal incentives.
  • Post deal support
    • Facilitate completion of regulatory formalities
    • Post-closure discussions with the management and its advisors