The sale of a business can take many forms. However, the way the transaction is structured can result in different commercial, tax and legal consequences for both the purchaser and the vendor. Opportunities for tax savings can be identified by speaking to an experienced advisor in advance of sale or acquisition. We can advise on the various implications of the proposed transaction for the purchaser or vendor and identify any strategies that may be more beneficial from a tax perspective. The purchaser and the vendor will have different requirements and may want to structure a transaction in a way that is more favourable for themselves. How and when the business is ultimately sold will be a matter of negotiation for both parties.
We advise and support accountancy firms, financial advisors, legal practitioners and others in the client service industry on issues of taxation for their clients. This includes clients buying/selling assets, retirement plans, inheritance matters and revenue audit support for individuals and companies. We work closely with you to ensure your clients are provided for with the best service possible.
Where a sale is to take the form of a sale of a company’s share the purchaser will want to carry out a due diligence review of the company. This will enable the purchase to see if the level of potential hidden liabilities within the company.
Our work in due diligence reviews involves carrying out a detailed review of the accounts of the target company, typically for a period of three years. A due diligence review is vital where there is a proposed share sale. It is the primary tool for assessing whether or not to proceed with the deal and to establish a realistic sale price.
If you are considering acquiring or selling a business we would encourage you to seek professional advice from an experienced consultant at NDTAX Limited. There are many planning points to consider depending on the facts of each particular case but in most cases early action can ensure you are getting the maximum tax relief available.