Taxand, the world’s largest independent global organisation of tax advisors to multinational businesses, expects 2016 to be another supportive year for robust M&A activity after 2015 saw record levels and many mega-sized transactions.
While some parts of the global economy remain sluggish and commodity prices depressed, low interest rates, high equity prices and capital availability have been catalysts for deal-making from small scale transactions to mega-market deals.
Around the globe we’re seeing increasing levels of inbound and outbound activity. Asian outbound M&A is expected to remain a significant factor in global transactions going forward as the regions’ businesses look west for new sources of growth and products and services for a growing middle class. Whereas Europe is increasing its attractiveness in inbound activity, with better visibility around the return to growth in the region. Finally, after five years of consistent growth and recovery, the US is supplying buyers with confidence to seek out potential acquisitions in order to stimulate growth.
In a time of unprecedented change in the global tax arena in light of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, Taxand’s Global Guide to M&A Tax covers 29 countries and provides a desktop reference of the latest legislative changes, tax incentives and general treatment of mergers and acquisitions worldwide. The guide answers dealmakers’ questions around tax implications to consider when undertaking any M&A activity.
Christopher Howe, Taxand’s Global M&A Tax Leader, said:
As corporations and investors seek opportunities for growth and investment, businesses are increasingly turning to cross-border transactions. However, governments worldwide continue to reform their tax codes and legislation, following the OECD’s BEPS recommendations, at a rate not seen historically. While operating in these uncertain times and ever-changing markets, taxpayers need to be mindful of the tax environment in which a deal is being made, with a clear understanding of the current issues and opportunities that come with every deal.
Every merger and acquisition has tax implications and many provide opportunities that can get overlooked in the rush to get the deal done. We hope this guide provides some of the insight you need to identify these opportunities and navigate an ever-changing tax landscape.