Any organisation considering a deal needs to check all the assumptions it is making about that deal. Tax due diligence provides peace of mind to both corporate and financial buyers, by analysing and validating the tax assumptions made.
Buy side due diligence
Our risk based approach seeks to focus on the key areas in order to develop an understanding of the tax profile of the business together with where unidentified tax liabilities may arise. Our team has extensive experience in efficiently managing the tax due diligence process within the short timeframes which commonly arise.
By enhancing the purchasers understanding of the target businesses tax profile and risk we increase the likelihood of the deal achieving its objectives.
Vendor assistance and vendor due diligence
When a company is up for sale – or selling off one of its parts – it often needs to show an in-depth report on its tax profile and risks to potential buyers. This is called vendor due diligence. PwC provides comfort to both buyers and sellers with an independent view of the tax affairs of the business, encompassing its current profile and challenges which are likely to arise. Vendor due diligence aims to address the concerns and issues that may be relevant to even the most demanding purchaser. By containing the costs which a potential purchaser has to incur prior to making a bid, a larger number bidders are likely to enter into the competitive sale process.
For vendors undertaking a disposal or selling off a part of their own business, vendor assistance provides bespoke solutions to assist you in successfully completing your divestments. Vendor assistance is potentially more suitable in situations where the likely purchasers are trade buyers and can be less time consuming than ‘full scope’ vendor due diligence. The key difference between vendor due diligence and vendor assistance is that the latter is provided for the benefit of the vendor only.