In this discussion, we will explore crucial aspects of the effect that tax has on net working capital and ultimately transactions. We will be focusing on understanding the complexities and nuances for the various cash taxes that a business leader could experience. Our discussion will be structured around the following key points:
• Tax Elections and entity choices: Exploring why buyers prefer specific tax elections and entities and how sellers should respond strategically
• Converting Net Income to EBITDA: Assessing whether all taxes are properly adjusted and what sellers need to know about this conversion.
• Net Working Capital Targets: Addressing challenges associated with calculating these targets and offering strategies for resolution.
• Capital Gains vs. Ordinary Income: Understanding their impact on the transfer process.
Attendees will gain a thorough understanding of these critical factors, empowering them to navigate the transfer process effectively.
