Mergers & Acquisition Tax: Pre-Deal
The pre-deal stage of mergers and acquisitions (M&A) arguably has the most bearing on the final value of a deal. Along with operations and finance, tax too is a critical determinant of the payoff of the deal. Effective tax strategies maximize deal value by mitigating tax risks and minimizing tax exposures while ensuring that business objectives are met. Due diligence, whether of buyer or seller, is the key starting point. Next, the transaction being contemplated must be evaluated for tax implications in light of the due-diligence information. Finally, an effective tax strategy then addresses the challenges and exploits the opportunities at the pre-deal stage. In practice, this three-step process is both complex and cumbersome. It may involve both domestic and international tax across two (and sometimes more) parties and needs deep expertise to uncover both hidden risks and opportunities. Constant changes in the tax and regulatory landscape further add to the complexity.
At MNA Corporate Services, we have wide and deep experience of working on M&As in diverse sectors across the GCC. Our team of M&A tax experts are equipped to guide you through the Pre-deal stage with:
- Advice on all tax, legal and regulatory aspects of a Joint Venture or merger / acquisition, based on identified business objectives
- Comprehensive tax and legal due diligence covering all tax, legal and regulatory aspects
- Evaluating proposed transactions and developing tax efficient strategies for all types of restructuring such as mergers, demergers, joint ventures, acquisitions, takeovers, amalgamations, slump sales, hive-offs, spin offs, etc.
- Devising risk mitigation strategies to negotiate based on due diligence observations
- Tax, legal and regulatory due diligence and health check of target assets, business, and property
- Both Buy-side and Sell-side tax due diligence reviews
- Structuring of transactions conforming to tax, legal and regulatory framework of the UAE or other GCC country as applicable
- Effective balanced tax structuring considering GAAR, etc. to maximize share/stake-holder value
- Assistance in obtaining approvals from government and relevant authorities
