Uncover the critical pre-sale strategies that can safeguard your M&A deal. This insightful post delves into how hidden and unaddressed tax liabilities can derail transactions and lead to costly post-closing litigation for sellers. Drawing lessons from a recent Delaware Court…
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Beyond the Balance Sheet: Why Sellers Must Confront Hidden Tax Liabilities Before a Deal
Posted in problems with taxes Tagged with: Business owners, contract law, Corporate Law, deal value, Delaware Court of Chancery, due diligence, federal telecommunications tax, hidden taxes, indemnification, legal advisors, legal risk management, lower middle market, M&A, M&A advisors, M&A litigation, Mergers and Acquisitions, Post-closing disputes, pre-closing, pre-sale cleanup, private company sale, risk management, sales tax, seller due diligence, sellers, state and local tax, statute of limitations, tax cleanup, tax compliance, tax liabilities, undisclosed taxes, VDA, voluntary disclosure agreement
Navigating Tax Risks in M&A Asset Sales: Lessons from the NBA Courts
Dive into the fast-paced world of mergers and acquisitions with our latest blog post as we unravel the complexities of a legal showdown in the sale of the NBA Memphis Grizzlies. Explore the strategic dance between buyer, seller, and the…
Posted in problems with taxes Tagged with: business arena, business insights, business lessons, compensation deduction, Court of Appeals, deal pitfalls, deal structuring, Deferred compensation, expert tax counsel, Hoops case, IRS, Legal Showdown, M&A court, M&A legal, Mergers and Acquisitions, NBA Memphis Grizzlies, strategic foresight, strategic planning, tax intricacies, tax strategies
DISPUTE OVER INDEMNIFICATION FOR LICENSE FEES IN INDIA’S TELECOMMUNICATION SPECTRUM
The parent company in a spin-off transaction was obligated to indemnify its former subsidiary for per-closing taxes. The parent company argued that $94 million in license fees were not taxes. M&A Stories July 12, 2023 Introduction: In business acquisitions, the…
Posted in problems with taxes Tagged with: Appellate court decisions, Asset purchase agreements, Indemnification disputes in M&A transactions, Indian telecommunications regulations, Legal implications of pre-closing assessments, Liability allocation in business acquisitions, License fees in acquisitions, M&A legal disputes, Spin-off transactions, Tax indemnification provisions
NON-PROFIT HOSPITAL BUYER CHALLENGES DENIAL OF PROPERTY TAX EXEMPTION FOR ACQUIRED HOSPITAL
A non-profit hospital chain buys a for-profit hospital and its property tax exemption application for the hospital is denied by the county. M&A Stories July 8, 2023 Introduction: Most hospitals in the United States are non-profit corporations, comprising over two-thirds…
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