Cross-border mergers acquisitions

Cross-border mergers acquisitions

Canadian businesses expanding into the U.S. look to take advantage of opportunities in a market ten times larger than Canada. Those opportunities may be lost where tax strategies associated with them are considered after the deal is done. Tax efficiency is a major factor in making deals work and can create a higher after-tax return than might otherwise be available to the target’s current owners.

The same is true for U.S. investors into Canada. The Canadian marketplace may be smaller than the U.S. but it presents a stable environment with expansion opportunities that may not exist in the U.S. and may have fewer competitors.

Cross-border business? You need advisors that understand the tax implications on both sides of the border

Despite the similarities between doing business in Canada and the U.S., in tax matters it is the differences that count. Both Canada and the U.S. have tax advisors with high levels of expertise but relatively few tax advisors and even fewer firms dedicate themselves to specializing in cross-border tax matters as does Andersen.

Cross-border tax advice associated with mergers and acquisitions focuses on maximizing after-tax returns through structure and financing and avoiding traps that may be left by the current owners. Structuring ownership means understanding tax implications on both sides of the border for all shareholders.

Mergers and acquisitions also need tax advisors to protect the buyers from traps that may imperil the deal. Andersen’s team has performed due diligence work to identify tax liabilities that may not have presented themselves on the financial statements. Such exposure can arise from often under-appreciated areas like state sales and excise taxes and payroll taxes. These issues may be resolved with the seller or negotiated with the applicable tax agency.

Call on Andersen’s mergers and acquisitions team to increase the value of your mergers and acquisitions and protect your business investment.