Carve-outs have become increasingly popular among global dealmakers, with a threefold increase in volume since 2016. Post COVID-19, this impetus should continue as a mixture of pent-up demand, distressed and non-core assets, and lower valuations that lure cash-rich private equity firms and corporates back to the deal table.
But what about the accounting and tax aspects of carve-outs?
Register here for ITR’s webinar on the tax dimensions of carve-outs and learn about the latest trends. In association with TMF Group, the webinar will take place on July 16 at 1.30pm GMT / 8.30am EDT.
According to TMF Group’s study, cross-border carve-outs that overrun by more than four months could be increasing costs by an average of 16% of deal value.
Three key actions to implement cross-border carve-outs successfully are:
Local presence: 76% with a moderate to well-established presence have mostly successful outcomes;
Realistic timetable: 84% of deals completed within four months were mostly successful; and
Robust preparation: 78% of corporates and 64% of PE firms say delays in completion could have been avoided with more preparation.
ITR is pleased to announce that it will be hosting a live webinar on Thursday, July 16 to discuss the area in further depth. During this webinar, Emine Constantin, TMF Group’s head of accounting and tax, will tackle the common accounting and tax pitfalls in a carve-out such as:
Set-up of tax structures: tax registrations and administrative processes;
Impact on the cost of compliance; and
Tax compliance processes: main items to be considered.
The 30-minute webinar will be moderated by ITR’s Commercial Editor Prin Shasiharan. It will be broadcast live at 1.30pm GMT / 8.30am EDT on Thursday, July 16 2020.
Register here now for the webinar
