State and local taxes are a critical but often overlooked area when it comes to the planning and execution of mergers, acquisitions and other business transactions. Undisclosed or unknown state and local income/franchise tax, sales and use tax, property tax and other tax liabilities and issues can impact the timing and sales/purchase price of a deal, creating financial concerns for both the seller and buyer, as well as their advisors.
Our SALT team can help a seller identify potential issues or exposure that would prevent them from realizing the maximum value on their sale. Likewise, we can assist buyers with identifying these same issues and potential exposure that could drive down the purchase price or require a seller to set aside funds to cover unpaid tax liabilities.
See our “Transaction Lifecycle” diagram below to learn about the state and local tax issues we consider during the due diligence phase of a transaction.