01 Mar Tax scan increases the value of your enterprise

Prior to a take-over, it is essential that a company sorts out its tax position. A tax scan is certainly not a luxury.

Prior to putting an enterprise on the market, it is recommended that an entrepreneur performs a tax scan. A tax scan is a light version of a vendor due diligence, where an entrepreneur proactively has his company checked for potential tax issues and opportunities. Such a scan allows an entrepreneur to mitigate or even solve potential issues prior to a take-over, thus increasing the value of the enterprise and enforcing his or her negotiation position during an actual sale.

In the special Mergers & Acquisitions of Media Planet (special edition of Trends), an interview with Hendrik Putman, partner at Mythra tax lawyers, was published. It discussed the value of a tax scan. The full article can be reviewed here (see page 8).