Background
Following a large acquisition of a competitor, a large international commodities trading powerhouse initiated a large scale legal and tax restructuring of its activities. This restructuring included both merging legal entities, moving activities to other (tax) jurisdictions as well as incorporating activities into the new structure.
To establish the tax base for the restructured entities, a tax valuation was required for each of the entities.
Our impact
Kepsfield took the lead in ensuring that the restructuring had a sound financial foundation. We conducted over 25 individual valuations, forming the basis for negotiations with tax authorities. To ensure cohesion and consistency, we also designed a top-down valuation framework. This strategic approach harmonized the overarching company valuation with the granular, ‘bottom-up’ valuations of the individual tax entities. By providing this dual-layered valuation insight, we equipped the company and its tax advisors with a robust toolset, fostering effective discussions with tax authorities and solidifying the company’s post-acquisition tax strategy.
