M&A Tax and Deal Advisory

M&A Tax and Deal Advisory

Mergers and acquisitions (M&A) are strategic decisions that can drive synergies paving the way for substantial growth opportunities, streamline core activities, monetize non-core assets, and create significant value. We understand and firmly believe that these are long-term decisions and it can have profound impact on the business for both the buyer and seller. M&A transactions involve complex commercial, tax, and regulatory considerations.

An optimal transaction structure, identifying the risk areas through a diligence process, combined with a balanced negotiation process to safeguard potential liabilities, and a well-designed earn-out structure are essential for both buyers and sellers to maximize value. A pre-structuring phase, especially before a strategic funding or an IPO, may involve critical aspects like consolidating core business under a single legal entity or carving out non-core businesses and achieving the right shareholding pattern amongst promoter group and investors.
These steps are crucial in creating value for stakeholders. In a deal scenario, the ideal structure not only creates value for both buyer and seller but also aligns with the commercial arrangements and expectations.

How we can help

At Kretha Sphere Advisors LLP, our expertise in tax and regulatory laws, coupled with our extensive research capabilities, enables us to provide practical and innovative solutions for M&A transactions. We provided end-to-end services from concept to implementation. Our services include: 

    • Financial and Tax Due Diligence: Comprehensive assessment to identify potential risks in a transaction.
    • Deal Structuring: Advise on efficient structures for acquisitions / divestment, whether through share acquisition or business acquisition – identifying right entity structure, optimum debt and equity mix, identifying the right instrument for investment.
    • Earn-Out Structures: Conceptualising and implementing an effective earn-out arrangements to achieve the commercial arrangements.
    • Pre-Funding/Pre-IPO Structuring: Bespoke entity and business restructuring to prepare for a strategic funding or an IPO – subsidiarisation of a specific business or realigning / housing the businesses into a specific legal entity, in case of multiple businesses, to suit the investor’s risk and reward expectation.
    • Transaction Document Review and negotiation: Providing critical inputs on transaction documents, indemnities, and warranties.