Mergers & Acquisitions

Tax can be a significant cost during a merger or acquisition process if not managed properly. South African legislation allows for specific provisions for group restructuring that can result in deferral of certain taxes thereby decreasing the tax costs of the restructuring transaction. Our mergers and acquisition team can assess the tax implications of the reorganisation for possible capital gains, VAT implications and implications of the reorganisation to the end shareholder.

Our services include;

  • Review of the restructuring agreements
  • Tax implications of financial instruments that will be used to effect the transaction for the entities involved and the end shareholders.
  • We also assess the accuracy of the taxation balances included in the business valuation, including the assessment of the risk related to underpayment of taxes and other related non-compliance issues from prior periods.