Mergers and Acquisitions Tax

Every transaction accompanies tax obligation.

In today’s globally connected world, companies want an effective way to boost their business operations. Companies are seeing acquisitions and consolidation as a quick and effective growth strategy. 

Whatever type of transaction you are contemplating—an acquisition, disposition, merger, joint venture, IPO, restructuring or refinancing—your tax obligations must be carefully assessed and your cash flows optimised. PwC’s extensive global network of M&A tax and regulatory practice endeavors to combine its rich international experience and expertise in domestic laws and regulations to devise innovative structures for M&A. Our tailored approach to your transaction will provide you with the right balance of functional, regional and industry expertise on each transaction.

We proactively identify integration challenges and help develop effective solutions to address them methodically. Our practical implementation expertise provides holistic services for both the domestic and international market, ensuring that you have a ‘one-stop solution’ for all your transaction. PwC’s M&A tax and regulatory practice, combined with its rich experience, strong working relationships and dedicated tax professionals, is dedicated in help you manage the tax aspects of your transaction delivering assured benefits.

Explore how we can help you better accomplish your tax objectives.

Tax due diligence and transaction structuring

We know that each new situation brings with it a different set of challenges. So, we work with you to create an integrated, customised solution that covers all aspects of your transaction in the form of merger, acquisition or disposal.

  • Developing broad tax strategy on your transaction objectives
  • Analysing the tax health of the target and helping you understand related risks and contingencies
  • Tax efficient and regulatory compliant structuring
  • Implementation and post deal integration services

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Corporate restructuring

In an ever changing environment, it is imperative for companies to reorganise their legal, ownership, operational or other structures in order to become better organised and more profitable to meet its future needs.

  • Help in separating non-core businesses in order to optimise the business structure
  • Rationalising your group structure to adapt to changes in the regulatory environment
  • Helping you achieve optimal group-level effective tax rate
  • Structuring your business to maximise value for shareholders

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Cross border investments

To remain competitive, multinational enterprises need to examine the tax implications of their business strategy across various jurisdictions where they conduct their business. Drawing on our experience and considering the client’s specific business goals, we develop and implement business driven structures to cater to their changing needs.

  • Helping in inbound and outbound investments
  • Setting up global holding companies and streamlining overseas structures
  • Management of foreign tax credits

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Divestitures and pre IPO assistance

While divesting a business or going for an IPO, one needs to be flexible and always ready for the unexpected. It is important to effectively plan the activity so as to ensure that there are minimum disruptions to the process. There may be many unforeseen tax and regulatory consequences for which the company needs to be prepared to achieve the optimal outcome.

  • Help separating non-core businesses or consolidate multiple entities for listing
  • Realign promoter holding structure, if required, for tax and regulatory considerations.
  • Optimise tax costs of the Seller while protecting tax attributes for the benefit of the Potential buyers
  • Help in capturing appropriate valuations

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Succession planning

Preparing your business for the next generation is going to be a complex process. The decisions you make will affect the future of your business, your employees and most importantly, your family. We can help you develop a road map for the future, specially designed to minimise any dispute, maximise benefits of your assets and minimise the tax burden.

    We help addressing the following concerns:

  • Business consolidation at the holding level
  • Migration to the optimal structure such as private trusts
  • Implementation of equitable terms and ensuring continuity of family business
  • Security provisions to non-participating individuals of the family

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Real estate investment trust (REIT)/ infrastructure investment trust (InvIT)

Globally, InvITs / REITs have existed for more than 50 years. Over the years, they have become a preferred investment mode across the world. With the much needed boost for REITs and InvITs in the regulatory and tax field, these will help in expansion of the quality real estate universe in India, besides giving developers another instrument to raise funds and reduce their debt burden.

  • Help in structuring of investments and acquisitions by REIT including migration of assets/ SPVs
  • Advisory services on related party transactions, domestic and international transfer pricing aspects
  • Assistance in regulatory registration and statutory compliances

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Insolvency and Bankruptcy Code/Stressed Assets

Insolvency and Bankruptcy Code, 2016 (the Code) repeals the erstwhile Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and appears to be an effective, time-bound mechanism for dealing with the problem of ever-escalating non-performing assets (NPAs). The Code seeks to maximise the value of assets and give a boost to entrepreneurship by creating a conducive financial and regulatory ecosystem to ensure repayment of long-outstanding debts.

The Code will go a long way to balance the interests of all stakeholders and build up a robust economy. However it brings along a host of tax, regulatory and commercial concerns:

  • Conducting financial, commercial, tax and legal due diligence of potential targets
  • Structuring the mode of acquisition of the target 
  • Review the resolution plan from a tax and regulatory perspective
  • Post-acquisition integration support

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Glimpses from our recent M&A event

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Contact us

Hiten Kotak

National Leader, M&A Tax, PwC India

Tel: +91 22 6689 1255

Ashutosh Chaturvedi

Partner, M&A Tax (North), PwC India

Tel: +91 124 330 6018

Ganesh Raju

Partner, M&A Tax (South), PwC India

Tel: +91 80 4079 6008

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