Real estate, wind power and M&A transactions always engage substantial amounts of financial interest. Any mistake in implementing or structuring such a transaction is irreversible and might be very expensive. Tax planning and applications for advance rulings are necessary elements of good planning for any major transaction.
Long-term and comprehensive planning makes it often possible to change the corporate structure or ownership of the business in order to reduce the tax burden of the contemplated transaction. From the acquirer’s perspective it is often crucial to strip major real estate off the business entity before closing the transaction. As such a restructuring might cause a significant tax burden to the business it is important to be aware of the most tax efficient ways forward.
The seller and the purchaser often have different objectives for the transaction from a tax point of view. Good tax planning and structuring of the business prior to the transaction will often enhance the possibilities to close the deal and even at a relatively higher price. This kind of structuring activities might require advance rulings from the tax authorities and asks some additional time between signing and closing of the deal.