Being involved with a successful acquisition is very rewarding for both the acquirer and their advisors. However, there can be many traps along the way.
Before any agreement is signed, consideration should be given to exactly what is to be acquired. Often, vastly different tax and commercial outcomes can hinge on the choice of whether to acquire an entity or its business and assets.
Canberra’s minimalist approach to tax reform is hurting Australia’s economy.
A scam that looks so simple you would think staff won’t fall for it. But they can, and in many organisations, they have.
2016 will be an interesting year for tax reform. It is an election year. The earliest date for a standard House of Representative/Half Senate election is 6 August 2016, although it would be possible for an early House-only election or a double dissolution.
Today, the average length of time a company stays in Standard & Poor’s 500 (S&P 500) is 15 years. Not too long ago, the average tenure was 60 years. The churn rate is so high that a S&P 500 company is now being replaced every two weeks.
The main driver for this change is the impact of technology on the way businesses operate and what customers expect. Left unchecked, lower barriers and new, digitally-enabled business models can create competitors from former customers, such as Uber and AirBNB. Read More
Bears in the investment community have long been warning of a China collapse, and the latest stock market volatility has emboldened their doom and gloom predictions.
But how much do we need to worry about the Chinese market? Is it ripe for wholesale collapse or is the current situation more reflective of a storm in a teacup?
The answer lies with whether current market volatility is reflective of fundamental weaknesses in the Chinese economy. Read More
Recent fuss over the possibility of meat causing cancer has not been a snag for exports of Aussie meat, but rising prices are causing trouble for some with a stake in the industry.
The value of meat products sold offshore is up a whopping 2.4 per cent in just the last month and 14 per cent in the last year, according to official statistics.
While graziers are whooping it up, these are tough times for the local meat preparation market forced to compete with eager foreign buyers for Aussie meat. Read More
Just as Malcolm Turnbull’s leadership has breathed new life into the federal government, it has also led to renewed confidence and activity in mergers and acquisitions.
Australia’s economic fundamentals have not necessarily improved since Turnbull became prime minister, in fact they have arguably worsened, but Turnbull’s ascension and early signs of his agenda on tax reform and innovation have resulted in the sort of stability and optimism that M&A markets have been crying out for.
After a slow third quarter for middle market M&A activity, 2015 ended strong, and Pitcher Partners is expecting a strong first quarter in 2016 off the back of increased confidence in the government’s agenda and direction. Read More
Liquidators are not obliged to retain funds until a notice of assessment is issued, High Court rules
In a case closely watched by the tax and insolvency sector for two years, Commissioner of Taxation v Australian Building Systems Pty Ltd (In Liquidation), the High Court of Australia ruled that liquidators are not obliged to, and are not personally liable for, failing to retain sufficient funds for the purpose of discharging a tax liability until the Commissioner issues a notice of assessment.
What does this mean for practitioners?
Malcolm Turnbull’s national innovation and science agenda is a step in the right direction, but it lacks an integrated approach necessary to kick-start the new economy and employment.
To be blunt, a patchwork of tax and investment incentives won’t solve Australia’s innovation crisis. Other countries are years and decades ahead of us, and started with sound plans that weren’t designed on the run.