
Tax Due Diligence for M&A Success: Expert Insights
Tax due diligence is critical for successful M&A transactions, especially for SMBs, as it uncovers hidden liabilities, compliance gaps, and potential tax risks that could derail a deal. By reviewing federal, state, and local filings, related-party transactions, and potential exposures, buyers can avoid inheriting costly surprises, while sellers protect their deal value. Engaging tax advisors early, leveraging technology, and structuring risk management provisions like indemnifications and escrows ensure smoother negotiations and post-acquisition operations.