Mergers and acquisitions – ACCA (AFM) lectures
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What is the meaning of after “personal” tax value of the offer?
Thank you
Personal tax is the income tax and/or capital gains tax that individual shareholders may have to pay on the amount they receive as a result of the takeover.
You cannot be asked any calculations regarding personal tax, but it obviously can be relevant in any discussion.
When tax losses are carried forward against future profits, then the more profit they make the sooner they can get relief for the losses. Making the company bigger by buying another company is one way of increasing future profits.
A cash mountain is simply having a very large amount of cash in the company. One thing they might do with the cash is use it to buy other companies.
thank you so much
You are welcome 馃檪
Wonderful lecture!
Although two things aren’t really explained and I would appreciate some clarification:
-How exactly do mergers/acquisitions ensure tax losses to be exploited sooner?
-What exactly is a “cash mountain”