Published in Tax Notes on August 22, 2022

M&A activity started off strong in 2022, but due to economic and geopolitical uncertainty, it remains to be seen how the year will close. 

When private equity sponsors make bolt-on acquisitions to existing portfolio companies or when corporate buyers expand operations through acquisitions, it must be considered how these acquisitions may affect a company’s post-closing state and local tax footprint, compliance obligations, and tax liabilities.

It is important to consult with a SALT adviser and assess potential tax planning opportunities early in the process of a business acquisition due to the range of state tax considerations that may become entangled.

In a recent Tax Notes article, A&M’s Louis Mancini highlights some of the key state corporate income tax considerations following the acquisition of a business and includes commentary on transfer tax considerations when acquiring a business.