The K3 Tax Advisory team’s corporate finance tax advice starts from an understanding of your objectives and commercial deal drivers. They identify how to maximise value and minimise tax risk in business transactions and support you through the negotiation and completion process to make sure there is no gap between their advice and the deal execution.
Buy-side
Our colleagues at K3 Tax Advisory work with the Quantuma Corporate Finance team to provide tax efficient deal structuring advice to buyers and incoming management shareholders. The K3 Tax Advisory team provides tax due diligence reviews, either as part of a wider financial due diligence team, or as a tax-only review to identify and quantify material tax risks and review tax assumptions in financial models. They advise on mitigation strategies for identified tax risks and can assist during the negotiation of tax provisions in the sale and purchase agreements.
Sell-side
The K3 Tax Advisory team helps sellers to understand the tax outcomes of a sale, from a simple cash transaction to a complex deferred payment and rollover deal structure, they can propose changes to deal structure that will be both commercially acceptable and tax-beneficial to the sellers. The K3 Tax Advisory team supports sellers through the process to completion and beyond, to ensure sellers achieve their planned outcome with minimum tax cost and the deal is correctly reported to HMRC.
Pre-sale planning
Where shareholders are working toward a sales process, the K3 Tax Advisory team can advise on pre-sale restructuring that can simplify a future disposal and maximise post-tax value. They also carry out vendor due diligence to identify tax issues and recommend remediation strategies before sellers face the time pressure of a live deal.
Management team
Ensuring the management team is properly rewarded, incentivised and retained is essential to maximise deal value. The K3 Tax Advisory team advises on share incentive schemes to provide tax-efficient reward, while ensuring management’s motivations are aligned with the seller’s business growth and exit priorities.
Employee Ownership Trust (EOT)
An EOT is a trust for the long-term benefit of the employees. Company owners can sell their company to an EOT, rather than a traditional buyer. The best-known advantage of an EOT is that the sale is completely tax free. However, there are also other significant commercial and practical advantages over a traditional company sale, as the process is collaborative, rather than adversarial.
The K3 Tax Advisory team works with the Quantuma team to offer a “one-stop shop” service for sales to an EOT, covering company valuation, financial modelling, debt advisory, legal and expert tax advice. They can provide a competitive fixed price quote to cover all the services required and deliver a seamless service from start to finish, including detailed advice for operating under an EOT.
Find out more about Employee Ownership Trusts (EOTs) here.
Cross-border transactions
Multi-jurisdiction transactions require an overview of how different tax systems interact. Through their network of international tax contacts, the K3 Tax Advisory team can obtain the specialist local advice you need and present a consolidated view of the risks and opportunities to help sellers to decide on the best transaction structure.
