
Every transaction has unique characteristics and occurs under its own special set of circumstances. A variety of considerations come into play when a company is determining the best structure for their deal, including tax, regulatory compliance, accounting and investor objectives.
In most transactions the Letter of Intent and subsequent Purchase Agreements are the most important documents prepared. Many times these documents are drafted exclusively by legal counsel but include many financial and tax implications. In litigation, most claims arise due to some financial or tax matter which creates a liability or financial loss of some kind for the parties involved. EKS&H Business Consultants help clients understand the representations and warranties involved in the agreements can help evaluate risk as well as help quantify that risk during the drafting process, and can clarify financial language to avoid risk
Entity Tax Structuring
Each situation and client is unique and has their own tax implications. When a transaction is contemplated, it’s imperative to analyze and understand those characteristics early to determine the most advantageous tax structure to be negotiated. In many cases, the tax structure drives the deal and defines which buyers/sellers will be involved in the process. An uninformed decision in this area can cost buyers/sellers undue tax dollars. EKS&H has a full service tax service area that has vast experience in M&A Tax structuring and advice.