Tailored tax advice to help Private Equity backed clients maximize investment returns 

Managing tax at a portfolio company level is key in helping deliver maximum value to private equity (PE) firms. Well-designed and executed tax strategies can make a real difference to share prices and valuation multiples. 

Alverez & Marsal’s (A&M) Portfolio Tax Services assists PE clients in navigating a range of tax issues that emerge during the lifecycle of an investment, with a view of managing tax risk effectively, maximizing exit price and achieving cash tax savings where possible. From pre-acquisition to bolt-on acquisitions and divestitures, our expert team will support PE firms — alongside portfolio companies’ management teams and boards — through every step of the way. offering advice on how to implement the most tax-efficient strategies, optimize structures and reduce liabilities.

What services can A&M’s Portfolio Tax Services provide?

Our professionals bring many years of experience in helping PE backed companies solve the toughest problems in an increasingly complex and ever-changing tax landscape. Operating side-by-side with A&M’s Private Equity and Transactions specialists, our experts offer tailored, integrated tax solutions for the specific needs of PE clients. 

Our holistic advice will help put in a place a smart, tax-efficient strategy with the aim to capture tax savings across the full deal lifecycle and ultimately maximize exit price.

Below are some of the services we offer:

• Conduct pre-acquisition tax due diligence to identify exposures and/or issues impacting future integration
• Implement post-transaction tax integration
• Identify potential tax planning strategies to deliver mid-and long-term cash flow and working capital improvements 
• Tackle inefficiencies in portfolio companies’ tax management systems and make sure they are compliant with regulations
• Provide tax planning, compliance and reporting services to portfolio companies
• Advise on legal entity rationalization to ensure tax affairs are managed effectively
• Provide add-on acquisition structure planning
• Conduct sell-side due diligence to identify tax risks prior to an exit

Our Portfolio Tax Services can drive significant value for PE firms by advising on strategies that maximize tax efficiencies and reduce liabilities before, during, and when exiting investments. These efficiencies can make a key difference to the portfolio companies’ performance and investment results.

We deeply believe maintaining an efficient tax strategy can give our clients a major edge in an increasingly competitive market for PE players and merger & acquisition (M&A) deals.

What are the benefits of A&M’s Portfolio Tax Services?

We leverage A&M’s firm-wide expertise across Private Equity Performance Improvement, Transaction Advisory Service and Tax to offer clients an integrated tax solution service whilst always thinking about tax with a return-oriented mindset. Other benefits of the service include:

• Cash flow: Through optimal tax structures/arrangements, we help clients save taxes and increase cash flow to the business by thinking smartly about the company’s legal structure and organisation. We ensure clients’ tax affairs are in order and won’t hinder the business’ valuation in an eventual exit further down the road
• Integration: We offer a more integrated approach for tax management services as our tax experts will work alongside the PE/M&A practitioners involved from an earlier stage in the company’s investment cycle with a PE fund. This ensures any issues arising at the due diligence stage are prioritised
• Broad team expertise: We tailor our service on a client-by-client basis and ensure the service is bespoke dependent on the industry and where they are in the business lifecycle. A&M has a wide range of both tax and sector specialists who can assist as and when needed
• Senior led resource: A&M’s tight-knit teams of senior professionals allow us to make impactful recommendations more quickly and flag potential issues earlier. A&M ensure there is visibility and interaction with senior team members throughout the business lifecycle
• Independent advice: Freedom from audit conflicts means A&M can move quickly and immediately and can draw on decades of business consulting and expertise in providing advice to clients that positively moves the needle and improves performance

Additional contacts:

Sonia Akhtar
Manager
sakhtar@alvarezandmarsal.com

For more information: 

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