Need help with acquisition proposal research assignment, #s 4-8, but
The post-closing organization should consider any potential corporate governance issues and identify who will have ultimate control over day-to-day operations and decision making within the new business. It is also important to agree upon how profits or losses will be shared between shareholders.
The form of payment should take into account both parties’ preferences as well as legal requirements which may dictate how much cash needs to be paid upfront compared to deferred payments that are contingent upon performance targets being met in future periods.
When selecting a form of acquisition it is important to explore options such as asset sales versus stock purchases along with their associated tax implications so that parties can decide which one best meets their immediate needs while also taking into consideration long term objectives.
Finally, when determining the tax structure it is essential to understand relevant local laws or regulations pertaining to income taxes, capital gains taxes etc., in order ensure maximum compliance whilst still optimizing deductions available under existing rules governing taxation policies.