Planning for Taxes during the M&A Process

Linn Crader has been working in mergers and acquisitions for almost forty years and has been a part of hundreds of successful transactions. Getting his start as VP of Finn and West, Linn Crader is well-known for a thorough approach and his expertise in incorporating various tax-saving strategies into M&A deal structures.

There are numerous tax considerations that arise as a consequence of a merger or acquisition. One of the most important ways to address these points is to start the tax due diligence process as early as possible in the transaction. Giving your team time to anticipate all the potential tax implications will allow you to include them in the structure of the deal.

Having said that, if your organization is planning to make acquisitions across borders, this presents an additional challenge. You may need to consider added due diligence in the form of corporate restructuring and other high-level decisions.

Strategic Growth Planning for Improving Enterprise Value

Oregon-based Linn Crader is the president of Business Transaction Services, Inc., and an active member of the International Business Brokers Association (IBBA). With over 40 years of experience in mergers and acquisitions, Linn Crader applies his knowledge to improving enterprise value for his clients through effective and strategic growth planning.

Business growth requires applying sound business practices and better growth strategies. There are proven strategic growth plans that boost business growth. However, a company’s size determines the growth plan to implement.

Mergers and acquisitions constitute one of the strategic growth plans for sustaining a company. It’s a cost-effective way to diversify, enter new markets, or boost market shares. Companies can also expand their product sales to a new city, state, or country.

Through increased marketing efforts and price adjustments, companies can acquire a considerable share of the current market using their available products. They can also diversify by creating new products that target existing customers or niche customers.

Companies may also consider buying a franchise or even franchising. Another popular growth strategy is pursuing strategic partnerships with other enterprises. Likewise, corporations may consider increasing their profit margin by building on efficiency and ensuring their products or services align with their business strategy.

The Importance of Mergers and Acquisitions

Linn Crader, a nationally recognized expert on middle-market mergers and acquisitions (M&A), teaches continuing education courses relating to middle-market deal structures and advocates ethics and professionalism. With decades of experience, Linn Crader serves as president of Business Transaction Services, Inc. (BTSI), which works exclusively with sellers using an integrated M&A model.

M&A refers to the integration of companies or assets. While a merger occurs when two companies combine to form one, an acquisition happens when one company is taken over by another. M&A is a significant activity in the world of corporate finance.

With the objective of wealth maximization, companies continually evaluate different opportunities available through mergers or acquisitions. A primary reason companies participate in M&A deals is growth. For instance, they can grow market share by gaining access to new product lines, consumer segments, and geography.

In addition, M&A can produce synergy, in which two separate companies create more value together than alone. Furthermore, acquisitions can increase supply chain pricing power if a company buys out its distributor, thereby eliminating supply costs and making production cheaper.