Lesley Adamo, Vice Chair of the Tax Group at Lowenstein Sandler LLP,
The intricacies of tax considerations in a merger or acquisition (M&A) transaction cannot be overstated. These considerations play a crucial role in shaping the overall economics and structure of the deal and can significantly impact the outcome for all parties involved. With expert tax planning and structuring, it is possible to mitigate the tax burden and maximize the benefits of the transaction.
In this episode of the M&A Science Podcast, Lesley Adamo, Vice Chair of the Tax Group at Lowenstein Sandler LLP, delves into the importance of tax considerations in M&A and provides valuable insights on navigating this complex landscape.
Things you will learn in this episode:
Tax complexities in M&A
Buyer's tax considerations
Seller's tax considerations
Gross-up in negotiations
Net-operating losses
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This episode is sponsored by The M&A Science Fair, the exclusive event for the industry-leading M&A corporate practitioners.
00:00 Intro
05:49 Tax Complexities
07:34 Considering Tax
15:05 Start-up Tax liabilities
18:33 Minimizing Risks
21:42 Stock vs. Asset sale
22:58 Net Operating Losses
27:00 Buyer's Benefits
28:24 Creating a Holding Company
30:00 Equity Compensation
31:33 Efficient Tax Structuring for Sellers
36:59 Negotiations
39:38 Tax Considerations in LOI
43:40 Qualified small business stock
48:59 Relocation for Tax Savings
50:41 Tax considerations during diligence
52:21 Lessons Learned