If you’re contemplating a business sale or acquisition, it’s important to understand that you’ll need to make multiple tax-related decisions. For example, if you own a corporation, you’ll have to negotiate either an asset or stock sale, which have different tax consequences. And if it’s a stock sale, you may have a choice between a taxable and tax-deferred deal. Depending on whether you’re a buyer or seller and your larger M&A objectives, some decisions may yield significantly greater tax benefits than others. That’s why it’s critical to work with tax professionals who know the impact of various deal structures when pursuing a business combination.
