The tax consequences of an acquisition or merger transaction may be significantly affected by its structure. In addition, Israeli tax law provides for certain tax free reorganizations if certain conditions are met. A clear example for the contrasting tax consequences which may result from the way an acquisition transaction is structured may be found in case of a purchase of a company. The purchasing of the assets of a company may result in substantially different tax consequences compared to the purchase of the company's shares even though both ways end up in the same economic result. Therefore, the advanced review and planning of the proper structure of doing a certain deal is crucial to its success.
Our law firm is advising our clients on the various possible structures, the advantages and disadvantages of each structure in light of the particular circumstances of the contemplated transaction and the tax attributes of the client and recommend on the most beneficial way of doing the deal. We have a vast experience in designing, structuring and doing M&A transactions and may provide our clients with a thorough review of the Israeli tax aspects.