Mergers and Acquisitions

Closing a successful deal efficiently requires a calculated approach to address the potential tax implications of a merger or acquisition. Business today is under increasing pressure to deliver better results for stakeholders. Whether you’re buying, selling, partnering, funding or fixing a company, the process can be complex and risky.

KPMG’s mergers and acquisitions tax function can help add value well beyond traditional tax compliance and due diligence by focusing on opportunities that arise within, and because of an acquisition.

• Conceptualization
  • Have detailed objectives
  • Gain an understanding of the long-term approach
  • Conceptualize on structures based on desired business objectives
  • Review business plans from a tax and regulatory perspective

• Management discussions
  • Gain an understanding of the management concerns
  • Provide a trusted approach
  • Conduct a SWOT analysis
  • Pre-deal evaluation

• Devising structure options
  • Devise tax efficient structures in line with desired operating and financial controls.
  • Analyzing the industry trends and evaluating feasibility of the available options.
  • Starting the critical path towards a desired structure

• Evaluation/due diligence
  • 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.

• Regulatory approval
  • Assist in obtaining regulatory approvals for establishing or consummating the transaction structure.

• Execution
  • Transaction implementation
  • Contract assistance from tax perspective
  • Negotiation support in completion phases
  • Thorough project management

• Integration
  • Foster smooth tax integration 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.

Our M&A tax team handles conceptualization and implementation of M&A deals with respect to the following:

• Acquisition/divestment structuring
• Corporate restructuring: merger, demerger, business/asset sale
• Capital reduction, buyback, balance sheet right sizing
• Inbound or outbound acquisition, sale of shares/business.

In addition, we conduct tax due diligence, provide negotiation support and offer structuring and documentation review for private equity, strategic and financial deals.

We also work closely with family and promoter driven businesses and help in the areas of succession, next generation handover, governance, growth, exit strategies and wealth preservation.