Pete Miller examines the two ways for the amalgamation of corporate activities
While we say we work on 'mergers and acquisitions' the majority of our time is often spent on disposals and demergers sometimes on acquisitions but rarely on mergers. This article will look briefly at two forms of merger and their tax consequences.
Mergers: forming a joint venture
In a joint venture two groups may each put part of their businesses into a joint venture company. A common mechanism to form a joint venture is:
● Each of the groups sets up a new subsidiary and hives down the appropriate assets (usually in return for an issue of shares to generate base cost).
● One of the groups will set up the joint venture company.
● The new subsidiaries are...
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Pete Miller examines the two ways for the amalgamation of corporate activities
While we say we work on 'mergers and acquisitions' the majority of our time is often spent on disposals and demergers sometimes on acquisitions but rarely on mergers. This article will look briefly at two forms of merger and their tax consequences.
Mergers: forming a joint venture
In a joint venture two groups may each put part of their businesses into a joint venture company. A common mechanism to form a joint venture is:
● Each of the groups sets up a new subsidiary and hives down the appropriate assets (usually in return for an issue of shares to generate base cost).
● One of the groups will set up the joint venture company.
● The new subsidiaries are...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
