Mergers and acquisitions are instruments that establish relationships between two or more business entities and are a key factor in determining business strategy.
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Sorting Tax assists you in enhancing your corporate value by serving as a trustworthy professional counsel for M&A, foreign investment and corporate restructuring. We offer tailor-made advisory and consulting services as per your needs, and ensure that the vast experience and in-depth knowledge of our in-house experts are fully leveraged to offer solutions on all M&A tax-related issues so that you can navigate the turbulent industry and thrive.
Services that we cover under M&A Tax
We provide various alternatives to restructure your business and bring in efficiencies through the following (within the legal framework) –
Identifying tax implications of various structures of investing in India by foreign companies, with specific emphasis on: –
This is a business strategy where domestic businesses expand their operations to foreign countries. To achieve this, we:
Foreign Direct Investment (FDI) is considered as a major source of non-debt financial resources for economic development of a nation. There are various aspects involved in Foreign Direct Investment in India where our team can assist you, like:
Sorting Tax’s team works closely with you to understand the fact pattern and provide customized M&A tax solutions to cater to your specific needs. Our team of M&A and International Tax consultants design a framework to meet deadlines and minimise any penalties on you to ensure smooth restructuring of your business and its operations. Our corporate tax professionals ensure reliable support and take care of the technicalities, while you grow your business and remain focused on the future.
Demergers in India is undertaken to separate a business unit
Section 27 of the Income Tax Act provides cases, wherein,
Demergers in India is undertaken to separate a business unit
Section 27 of the Income Tax Act provides cases, wherein,
Mergers and acquisitions are instruments that establish relationships between two or more business entities and are a key factor in determining business strategy.
In this fast-paced world where digitalisation is leading our global age, the world has become a smaller and a more competitive place. This is more so in the case of a developing nation like India.
Creation of new markets or expanding old ones or even adapting to the existing ones, whether it be one or the other, businesses have to enter into transactions with other enterprises i.e., via mergers, acquisitions, amalgamations, takeovers or business restructuring.
They help enterprises in:
and many other benefits arise when one enters into these agreements.
As per Bain & Company’s Report 2022, Mergers and Acquisitions in India have picked up a steady pace, so much so that it acted as a boost of confidence for new entities, who boast for up to 80% of the total share of Mergers and Acquisitions in India in 2020-2021. This is a stark increase in the number of deals crossed, almost a 70% spike than the 2017-2019 period.
There are two types of amalgamation agreements, companies can enter into:
It is an agreement that merges two existing companies into one entity. In this case, a new entity may or may not be formed. If a new entity is formed, it is called an ‘amalgamation’ and if the companies merge into an existing company it is called ‘absorption’.
There are different types of mergers which include:
Here are some examples of the various types of mergers that have been defined above:
Example: PVR Cinemas and INOX Merger
Example: Walt Disney Company and Pixar Animation Studios
Example: Walt Disney Company and ABC
Example: Coke and Vitamin Water
As an International Tax Consultants, we provide services for FDI, Inbound & Outbound Investment and Transfer Pricing
As a UAE Tax Consultants, we provide services for UAE Corporate Tax, UAE Economic Substance regulations (ESR)
We provide services for Income Tax Return filing, Tax Audit & Transfer Price, Taxation and Compliances, Income Tax Assessment
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