Tax and Dealmaking

As part of our annual M&A Symposium Series, VRC partners with John Bennecke, Managing Director and leader of True Partners Consulting Chicago office, to highlight the importance of aligning corporate tax professionals with valuation professionals and the dealmaking process. Corporate tax professionals have significantly expanded their role in how a deal is structured. Traditionally, the tax group spent time accounting for and structuring various company transactions, understanding various tax-related risksĀ and navigated evolving tax rules that impact a company’s various transactions. Now, the role of tax in the dealmaking structure has risen to a higher and more strategic level.

[Transcription]

When I started my career over 25 years ago, my career was really focused more on what I would call the tax reporting. But really, now, tax directors and VPs of tax are more strategic, and they really need to be focused more on what I call the big three: it’s managing risk, it’s looking at opportunities, and being strategic with the goals of the organization.

Any transaction is not without risks, as well as opportunities, and they need to find the right balance from a tax perspective for both. And tax being such a large part of any deal, it’s important that they’re able to manage all three aspects.

I think it’s critical to work with the appropriate professionals in all aspects of dealmaking. It’s extremely critical for tax professionals to work with a valuation expert in order to appropriately report the transaction on the tax returns or the financial statements. We need the appropriate information, so it’s key to have that partnership with your valuation experts.