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Tax Restructuring for Debt, Financial & Bankruptcy Planning

We help organizations navigate complex debt workouts, financial restructuring, and bankruptcy planning—identifying risks and driving value for stakeholders for every transaction.

Tax Restructuring

Make tax-efficient business decisions

Changing market forces and economic uncertainty can impact any business. If your organization finds itself in this difficult situation, considering the tax implications of a debt restructuring, financial restructuring, or bankruptcy may not be a top priority with so much on your plate. Looking at tax impacts early can allow you to make more informed tax-efficient decisions about your company’s future.

KPMG LLP can help. Our professionals have helped many distressed organizations, in many industries, to restructure and complete bankruptcy proceedings. Our approach to restructuring is rooted in the deep industry experience and insights of our tax specialists. If you need advice on how to make better tax decisions when pursuing a restructuring, we are here to help. And you can focus on running your business.

Debt-for-equity exchanges:

Restructure capital efficiently while managing tax impacts.

Distressed M&A:

Maximize value to parties through tax attributes and managing tax risks

Recapitalizations:

Optimize capital structure for long-term financial health.

Bankruptcy:

Structure bankruptcy transactions to maximize tax benefits and minimize liabilities.

Risks we can help you identify

  • Cancellation of debt (COD) income and attribute reduction
  • §382 ownership change limitations
  • Basis adjustments and state conformity issues
  • Transfer taxes

Our M&A Tax Approach

Our KPMG team combines deep industry experience with Washington National Tax expertise to deliver tailored solutions for every restructuring scenario.. We think outside the box to improve transactions and provide actionable insights, strategic guidance, and hands-on support throughout the transaction lifecycle.

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The Team

The Team

Our tax specialists have strong working relationships with global professionals inside and outside of KPMG and remain well-versed in ever-changing regulations that may affect your transaction.
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Industry Experience

Industry Experience

KPMG tax professionals come from diverse backgrounds. Our team includes many former policymakers, who are intimately familiar with the areas of tax relevant to our clients.
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Washington National Tax

Washington National Tax

With more than 200 professionals, Washington National Tax is our principal resource for helping to solve the most complicated tax issues.
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Technology

Technology

Our suite of advanced software helps plan for a corporate restructuring, monitor earnings and profits, compute tax basis in subsidiaries, and more.

Frequently asked questions

What tax issues arise in a debt restructuring?

Common issues include COD income, attribute reduction, §382 ownership change limits, asset gains, basis adjustments, and state conformity differences.

How does bankruptcy impact tax attributes?

Bankruptcy can create additional optionality to drive different tax results when compared to an out-of-court transaction, but many of the same issues remain. Early modeling helps preserve and drive additional value.

What are key tax considerations in distressed M&A?

Deal structure (stock vs. asset), §382 limits, COD income, step-up opportunities, maintenance and availability of tax attributes, and state implications are central to optimizing outcomes.

Dive into our thinking:

Tax consulting services for debt restructuring

Specialized tax restructuring services designed to help organizations navigate financial challenges by addressing tax complexities associated with capital structure reorganization.

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Explore more

Access key resources to help you make an informed decision about the future capital structure of your company.

Meet our team

Our people are at the heart of our M&A Tax practice

Image of Yinka Kukoyi
Yinka Kukoyi
Partner, M&A Tax, KPMG US
Image of Mark R. Hoffenberg
Mark R. Hoffenberg
Principal, Washington National Tax, KPMG US

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