Understanding the Tax Bases of Assets Makes for Efficient Sales
As the deal market heats up and more businesses are bought and sold, buyers and sellers will regularly negotiate not only purchase price but also the tax structure of the deal. Indeed, the price and tax structure are inseparable. Sellers should understand what tax structures might be most advantageous before the negotiations begin, and buyers should know what information they’ll need from the sellers before they even contemplate an offer. To do so, a proper understanding of the tax bases of the assets relevant to the subject business is essential for both parties.
David Freeman is a managing director at WTAS in Chicago. Freeman has more than 26 years of experience providing tax planning advice to both publicly-held and private businesses, their owners and their key executives. He is a member of the Commercial and Alternative Investment practices at WTAS.
Business Finance (August 4, 2011)
View the article on businessfinancemag.com