Before purchasing a business, a tax evaluation is always required. Questions such as whether to purchase assets or shares, and how to structure financing typically arise.
A due diligence review of past tax filings may be a prudent step. We can provide this review and summarize our findings quickly and efficiently in a report.
Canada does not allow for consolidated income tax returns, so tax planning is often necessary to match the profits from businesses with losses from other sources or interest expense on loans taken out to buy the business. We can advise on this planning and help to implement it after the purchase.
We work closely with legal counsel to coordinate the tax planning with the required legal documentation.
We can also structure creative strategies, where warranted, including earnouts, sale and leaseback transactions, share-for-share exchanges, spin-offs, and management buyouts.