September 4, 2024

Key Challenges and Opportunities for Tax Directors in a Tightening Economy

This article was originally published by The Professional Journal of Tax Executives Institute

Given the tightening economic cycle with high interest rates and uncertainty regarding the extent of future rate cuts, it's crucial for companies to proactively identify opportunities for tax savings while mitigating potential adverse effects. Companies facing significant financial challenges, including substantial net operating losses and deteriorating investments in their subsidiaries, should carefully analyze the complex tax rules that could affect their financial and restructuring decisions. A&M Tax experts, Kevin M. Jacobs, Emily L. Foster, and Matthew H. Lannan share their perspectives on challenges and opportunities that may arise while navigating the current economic climate.

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Thought Leadership

Tax losses in share deals – Hidden value impacting purchase price negotiations?

August 4, 2025

In many M&A share transactions, tax losses may represent significant hidden value. But that value depends particularly on two key questions: Can the tax losses survive the transaction and can the parties mutually agree on a business plan substantiating the future usage of the potentially surviving tax losses? Our article outlines how jurisdiction-specific rules — especially Germany’s strict change-in-ownership regime — affect the usability of tax losses post-closing, whether tax losses can provide a shelter for historic tax risks and why tax losses impact purchase price negotiations.