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How to get the best deal for SME clients using tax consolidation


When a small to medium business (SME) is proposed to be sold, taxation considerations can produce a disconnect between seller and buyer; the buyer may prefer an asset deal, while the seller will often have a very strong tax-based preference for a share (or unit) deal. The purpose of this article is to identify ways in which the consolidation regime can be used for either party’s benefit. For the seller, it can make a share deal palatable to the buyer, and can make the due diligence process simpler. For the buyer, it can provide a level of comfort as to how tax history is addressed and can help ensure that the tax and duty outcomes are at least as good as they would have been in an asset deal.

The author argues that there are significant potential opportunities for practitioners in being aware of how consolidation can work well for SME clients looking at a transaction.

Author profile

Jolyon Dare CTA
Jol is a Tax Partner of HLB Mann Judd (NSW) where he specialises in helping corporate and SME clients and their advisors. Jol has significant experience in SME restructuring, practically assisting small businesses to manage their tax risk and opportunity, and realise their highest value at sale. Jol is a regular presenter for The Tax Institute's Morning Tax Club and NSW Tax Forum. - Current at 10 March 2017
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