Сompanies are buying in abundantly. But two thirds of all mergers and acquisitions fail – especially on the human factor. Practical examples.
Mergers and acquisitions are good tax assessments of high interest for maximum return. Also, the costs of transfer are to be treated and the interest for a possible financing subsequently deducted for tax purposes.
The tax component is central to mergers and acquisitions. It is therefore of great importance to seek tax advice.
The structure and the way in which the merger can influence the pricing and thus also your negotiating position and the financing. First of all, you should have enough insight into the upcoming merger and know how the company will operate from now on.
In all stages of a merger or acquisition. Our advice includes, for example, the following aspects:
The preparation of your current structure for a (possible) merger or acquisition. Is your current structure suitable for this? We show you the possibilities and help you.
Funding options such as a proposed merger or acquisition Will the transaction transfer assets and liabilities, or the shares? How is the transaction financed? Are several countries involved? An optimal tax structure in a merger or acquisition can help you with this. Together with our international network, we are able to assist you with Dutch and international mergers.
Did the merger or acquisition take place? How do you enable an optimal tax structure, with no taxation on the implementation of the same? To realize synergies. We help you to generate the highest from the merger or acquisition.
In other words, especially at the psycho-communicative level, a lot can go wrong with mergers and acquisitions. “Mergers are the supreme discipline of management” – and they do not dominate everyone, says economist Lars Schweizer, who teaches at Goethe University Frankfurt.
Schweizer has evaluated numerous studies on the subject. Result: “Two out of three company takeovers fail.” Particularly in large mergers such as Karstadt , the risk of failure is particularly high. And there have been plenty of them recently (see chart).