Putting Deals through a Microscope | Traversing Transactions attempts at dissecting a deal by analyzing various aspects and nuances of an M&A Transaction, traversing through a complex mesh of Commercial, Regulatory, and Tax ("CRT") imperatives!
Putting Deals through a Microscope | Traversing Transactions attempts at dissecting a deal by analyzing various aspects and nuances of an M&A Transaction, traversing through a complex mesh of Commercial, Regulatory, and Tax ("CRT") imperatives!
Putting Deals through a Microscope | Traversing Transactions attempts at dissecting a deal by analyzing various aspects and nuances of an M&A Transaction, traversing through a complex mesh of Commercial, Regulatory, and Tax ("CRT") imperatives!
Preference Shares: Structure Savoir-Faire Across Various Use Cases
In my latest article, as published on Taxsutra, I work through three use cases where the multiple personalities of a single instrument i.e., preference shares, are mapped across the use cases, traversing the multiple regulatory and tax identities:
Use Case 1: Use of RPS in case of a merger that defers cash outflow while giving the seller a defined exit through redemption or a put option.
Use Case 2: A family arrangement achieved through a cross-demerger that swaps two businesses between two branches without an upfront tax event, while economic value discharged through preference shares.
Use Case 3: Net worth augmentation that relies on the gap between what the Companies Act counts as share capital and what Ind AS treats as a liability.