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Leveraging tax planning for global M&A value creation

Leveraging tax planning for global M&A value creation
How private equity portfolio companies can leverage tax planning to jump-start post-close value creation in cross-border deals.

Table of Contents

Global tax planning is crucial for private equity cross-border transactions, as complex tax landscapes and regulatory changes can impact financial outcomes. Portfolio companies can use various tax strategies to achieve short- and long-term benefits. After completing a transaction, companies should focus on executing the recommended items on their 100-day plans to drive value creation. Effective tax planning is essential for post-close value creation, and companies can enhance their operational efficiency, manage risks, and reduce costs by strategically assessing their supply chain networks. Additionally, examining VAT registration footprint, legal entity rationalization, and understanding permanent establishment considerations are also important in tax planning. Tax planning is not just about compliance, but also about unlocking hidden value in private equity investments. Understanding cross-border tax treaties, transfer pricing policies, and global and intercompany debt/equity analysis is crucial for strategic decision making. Finally, ensuring that global IP aligns with a company's strategic initiatives is essential for enhancing market position and driving revenue growth. Working with a knowledgeable tax advisor is crucial for leveraging the right tax strategies to maximize post-close value creation. Such strategic partnerships are instrumental in navigating complex tax landscapes and regulatory changes.