Strategic Business Decisions
Businesses today are evolving organically and in-organically through Mergers, De-mergers, Acquisitions, Divestures, Sales, etc achieved through both local and transnational capital flows.
Our approach involves competitive preparedness for a smooth transition from an era of regulation and protection to the free trade globalized market of the next millennium,based on a credible track record, to strengthen and nurture core capabilities with a view to attain and sustain a leadership position in the market,aim at specialization, which may involve getting out of investments that are non-core and concentrating on the core competencies of the corporate and allied group companies, restructuring to acquire resources and capabilities required to compete effectively in the revamped dynamic economic environment, a recognition of the fact that only a few players dominate each segment of the market and therefore to restructure/reconstruct a business to be in line with the global trends, restructuring to facilitate joint ventures and alliances.
The tax implication of such strategic business decisions for growth, expansion etc. has to be carefully studied and an efficacious model evolved so that optimum tax benefits accrue to one and all. Our team would review the tax incidence pre and post the strategic business decision as one of the important determinants of the value of the deal. In the exercise of restructuring of companies under the same group, a tax consideration is one of the ‘make or break’ issues.