A critical component of managing risk in connection with potential acquisition, disposition or restructuring of a business is identifying and quantifying potential exposures of all federal, state & local and foreign taxes. WTS professionals can facilitate a comprehensive analysis to identify tax exposures and potential tax benefits that can impact the transaction structure and valuation. We provide various services designed to identify tax exposures and recommend solutions and structures that mitigate exposures and capture opportunities.
Our services include:
Due Diligence Analysis and Reporting
Based on the scope of each engagement, we prepare a document and information request list asking the target to provide us with all relevant tax returns, supporting work papers and other relevant target company documents relating to past and current tax positions. Following our review of the information provided and any discussions with target’s management and external tax advisors, we prepare a due diligence report that identifies the material tax exposures of the target and summarizes certain other tax matters relating to the target’s operations.
Structuring
Recognizing that each client‘s tax structure and business considerations are unique, we work with our clients to identify key drivers and cost-benefit considerations involved in structuring acquisitions. Based on such information, we assist our clients develop tax structures to achieve their desired results. We also typically quantify tax implications of proposed structures, taking into account potential consolidated return issues and other tax account implications. Our international expertise and global alliance enables us to provide our clients with domestic and multi-jurisdictional tax structuring advice.
Quantitative Studies
Understanding a company’s tax attributes, such as net operating losses, tax basis and foreign tax credits, is of great importance from an acquisition planning perspective. Our professionals prepare quantitative studies, including: Section 382 and SRLY studies; E&P studies; tax basis studies; and foreign tax credit studies. These studies can be used for tax planning purposes, tax compliance purposes and audit related matters.