The choice between a share sale and an asset sale involves many different considerations – including commercial, legal and tax. It is important to remember that stamp duty obligations can also be quite different depending on what type of transaction is chosen. Here we explore some of the instances when stamp duty can impact tax obligations and add to the cost of M&A significantly.
M&A activity has had a significant uptick during the pandemic, with cashed-up buyers capitalising on opportunities for strategic investments. With any investment, it is important to properly assess the level of tax risk that a target investment entity presents.
When it comes to M&A transactions, obtaining a truly clear exit is often a lot harder than it seems.
When COVID-19 hit Australian shores, and businesses across all industries started to feel its impact, state and federal governments began to release a wide range policy updates and initiatives.
In an M&A transaction, Tax Warranty and Indemnity (W&I) insurance policy is a key risk management tool you should consider to safeguard your transactions.
While this deal mechanism has been used in transactions for some time, we are likely to see an increase of earnouts used in future M&A negotiations given the uncertain and unpredictable economic climate ahead.
No one M&A transaction is the same. Each brings about their own unique set of considerations and conditions.