Corporate mergers and acquisitions (M&A) activity continues to increase. Understanding and planning for state and local tax implications is imperative when contemplating an acquisition, disposition, merger or restructuring transaction.

Performing a comprehensive state and local tax due diligence can be a differentiator in identifying unexpected tax risks and mitigating those risks while providing negotiable opportunities for improved deal value and exit strategy preparedness. 

SimekScott’s state and local tax (SALT) transaction tax services cover M&A state tax consulting and provides analysis for proposed transactions to identify state and local tax risks and opportunities associated with the mergers, acquisitions, restructurings and other corporate transactions.

We will work with our clients and provide a comprehensive state and local tax transaction analysis through:

• Analysis: Analyze historical tax returns, financial statements, and quantify tax assets, tax risks and contingencies.

• Document Review: Reviewing sale or purchase documents.

• Discussion: Interviewing key personnel to determine historical, current and future tax positions.

• Determination: Determining the proper use of tax attributes, such as net operating losses, under section 382 and other tax-attribute studies and provide guidance on appropriate state filings such as bulk sale notices.

• Report: Provide a comprehensive written interpretation of issues, analysis and practical recommendations related to the transaction.