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Strengthened Balance Sheets and Surplus Cash Drives M&A Activity Globally

Strengthened Balance Sheets and Surplus Cash Drives M&A Activity Globally
Taxand, the world's largest global organisation of tax advisors to multinational businesses, confirms that, despite a cautious mood, cross border M&A activity is picking up.

The global economic crisis set off a tidal wave of austerity measures. Businesses held back on investment fearing further deteriorations in the macro-economic environment. However, corporates with stronger balance sheets and surplus cash continue to spur activity.

Taxand's Global Guide to M&A Tax, launched today, covers 35 Taxand countries and highlights key strategies for multinationals to consider when undertaking any M&A activity worldwide. The guide also provides an update on legislative change affecting M&A activity, including tighter tax rules surrounding the carry forward of tax losses and stronger regulations limiting the tax deduction of interest and reviews the impact differing local regulations have on deals.

Taxand's Global Guide to M&A Tax provides multinationals with insight needed to identify opportunities and answers dealmakers' questions to consider when undertaking any M&A activity worldwide.

Ian Fleming, Taxand's Global Transaction Tax Leader, said:"Multinationals with surplus cash resources are now looking at M&A activity to consolidate their market position providing long term value to shareholders. In particular, activity in emerging markets is increasing. Whilst the long term commercial and strategic benefits may be clear, unfamiliar and changing tax rules in these regions produce short term risks. These need proper assessment to ensure full value is derived from the transaction."

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For further information please contact:
Abigail Tarren, COO
T. +44 (0)207715 5243
E. atarren@taxand.com

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