Our Financial Advisory consulting practice is geared towards special situations and high-value transactions. Our experienced professionals, coupled with the resources of The BDO Alliance, are fully committed to enhancing your wealth and profitability.
KRMT works with companies to provide answers and sound business advice in complex situations. Our specialized consulting practice delivers value-added services to clients in an acquisition or sales transaction. We can help you navigate critical transitions in your business.
Merger & Acquisitions
Sellers and buyers of a business, whether conducted in the form of a regular corporation, an S corporation, a limited liability company, or a partnership, should be concerned about the after-tax consideration they receive or pay for the business. For example, sellers of a corporate business will be disappointed if after paying a combined corporate and individual level federal and state tax of approximately 65 percent they are left with only 35 percent of the profit from the sale. Or, purchasers of the stock of a corporate business may realize that too much was paid when a depreciation or amortization deduction cannot be taken after the acquisition for the full purchase price.
These examples demonstrate the need for careful planning to minimize and defer tax to the sellers and maximize and accelerate tax benefits to the buyers. Further, the resulting tax consequences to both the sellers and buyers should be considered by each other in the negotiation process.
Our Financial Advisory team can help sellers and buyers of a corporate business:
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Determine whether the acquisition should be structured as a taxable or nontaxable transaction.
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If nontaxable, determine the type of tax-free transaction that should be used to accomplish the parties' individual goals.
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If taxable, decide whether the transaction should be structured as a stock or asset acquisition.
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Maximize the use of any net operating losses and other tax attributes of the business being acquired.
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Identify other consequences that should be addressed in the negotiation process, including where the purchaser and/or seller are members of an affiliated group filing a consolidated return. |
Our team of professionals can also help the sellers and buyers of businesses conducted as sole proprietorships or partnerships. In addition, we can help identify other possible tax concerns as part of the due diligence and negotiation process.
Litigation Support
