COVER ALL BASES: WE CONSULT EXTENSIVELY ON TAX & LAW
Divestment and acquisition of companies have tax and legal consequences.
Sellers are aiming for tax-exempt capital gains, buyers at the same time value tax-deductible expenses. These different interests of the parties usually also affect the purchase price. Here, as part of the sales negotiations, knowledgeable advice can bring about a balance of interests between the contracting parties.
The question of whether company shares are sold (share deal) and thus a universal succession occurs or individual assets (asset deal) are sold, must be examined under civil law and tax law. Relevant are, among other things, the timing of the transfer of ownership for the realization of profits by the seller, the age of the seller, the potential utilization of losses, locking and retention periods as well as trade tax, sales tax and real estate transfer tax consequences.
Personal tax burdens also depend on the factors mentioned above.
It often makes sense to carry out corporate restructuring in advance of planned divestments, such as a change in legal form under the German Transformation Act (from sole proprietorship to partnership and or corporation or vice versa) and balance sheet measures (to distribute retained earnings, to change the capital base, to acknowledge rating laws and disclosure options).
We are in constant dialogue with knowledgeable and experienced accountants, tax advisors and lawyers. We are happy to establish contact to them to enable you, our clients, to optimize upcoming acquisitions.
Please feel free to contact us.