Taxation in M&A Transactions

Taxation in mergers and acquisitions (M&A) involves understanding how these transactions will be taxed by the government. When one company buys another, the sale can trigger taxes on profits, known as capital gains tax. The structure of the transaction—whether it’s an asset sale or a stock sale—affects tax liabilities for both the buyer and seller. Proper tax planning is crucial, as it can impact the overall value of the deal. Companies often consult tax experts to navigate these complexities and optimize their tax strategies during M&A to minimize liabilities.