Paquette Attorneys can help you properly navigate the tax implications, for these transactions can significantly impact outcomes. Below, we provide essential strategies to consider when purchasing or selling a business.
Purchasing a Business: Tax Evaluation and Planning
Before acquiring a business, our experts will conduct a detailed tax evaluation of the company in its current state. Critical questions they will evaluate include whether to purchase its assets or shares and how to structure financing for the acquisition. Additionally, our team of tax lawyers in Montreal can conduct a due diligence review of past tax filings to identify potential risks and opportunities.
Key tax planning considerations for buyers include:
Assets vs. Shares
Deciding between purchasing assets or shares impacts tax liabilities and future returns. Our experts will help you understand how asset purchases often allow buyers to benefit from depreciation and how, in contrast, share purchases may provide a more straightforward transaction structure.
Financing Structure
Structuring financing effectively can maximize the tax deductibility of interest expenses on acquisition loans, reducing overall tax burdens.
Tax Loss Utilization
In Canada, where consolidated income tax filings are not allowed, Paquette Attorneys will seek to align the business’s profits with tax losses or interest expenses from other sources, which requires strategic planning.
To support these objectives, our fiscal team collaborates closely with our legal team to ensure that tax strategies are integrated seamlessly with transaction documentation. We also offer innovative solutions, such as:
- Earnouts
- Share-for-share exchanges
- Management buyouts
- Sale and leaseback transactions
- Share splits or divisions
These strategies ensure that your tax planning is embedded into the transaction to secure the best possible financial outcomes.
Selling a Business: Maximizing After-Tax Returns
For business owners looking to sell, careful tax planning can maximize after-tax returns. We evaluate various sales methods to identify the
most tax-efficient approach tailored to your circumstances. Paquette Attorney’s comprehensive process includes:
Corporate and Family Structure Analysis
Review your current business structure to identify opportunities for tax optimization.
Transaction Design
Develop a step-by-step plan to implement the optimal tax strategy.
Collaboration with our Legal Team
Coordinate between legal and financial advisors to ensure smooth execution.
Documentation Review
Ensure transaction documents comply with tax laws and regulations.
Negotiation Support
Assist during negotiations to minimize tax implications.
Tax Filings and Elections
Manage required filings to finalize the transaction.
Why Choose Us?
Our expertise in tax planning, combined with close collaboration among our legal team, business valuation experts, and other key stakeholders, ensures that every transaction is executed with precision. Whether buying or selling, we tailor our advice to meet your unique goals while addressing complex tax regulations.
Contact our legal firm today to discover how we can support your business transaction and tax planning needs!
Partner with a Legal Team That Understands Your Business
As a trusted West Island law firm, we combine big-firm experience with personalized service that puts your business first.
Contact us for practical advice and guidance through complex situations.
