Acquisitions & Restructurings
In today’s tax environment, there are no run-of-the-mill merger and acquisition transactions. From exploring a potential transaction, to obtaining IRS and regulatory approvals, to closing and post-closing transitions, we provide tailored guidance that helps minimize potential tax burdens and maximize the value of the deal.
In all merger and stock purchase transactions, buyers must be concerned about the tax history of the purchased entity and, in the case of an acquisition out of a consolidated group, the tax history of that consolidated group. Our lawyers regularly work with buyers in conducting tax due diligence with respect to a particular acquisition candidate. We help buyers analyze the target’s tax history and, where appropriate, secure additional representations, warranties and indemnities from the sellers.
In taxable asset sales (including many merger transactions), we help buyers formulate a purchase price allocation that results in the fastest write-off for tax purposes. We advise sellers on tools for maximizing the capital gain and minimizing the ordinary income that otherwise results from the transaction. In a taxable stock sale, we help buyers calculate the “tax cost” of purchasing stock, analyze the tax attributes of the purchased entity, and determine which form of entity represents the best vehicle for the acquisition.
We also work with buyers and sellers to ensure compliance with tax rules that apply to transactions that potentially qualify as tax-free under the US Internal Revenue Code, regularly seeking private letter rulings or issuing tax opinions to facilitate transactions. We draft tax representations and tax-sharing agreements, and structure tax-free spin-off and split-off transactions.
When multinational companies seek to form international joint ventures, we guide clients through the complex tax issues related to all stages of the international joint venture, including formation, operation and exit.
Mergers & acquisitions
We regularly advise on many of the largest public mergers and acquisitions along with intercompany restructurings involving Fortune 500 companies. We are frequently retained as special tax counsel to advise on transactions that are particularly tax sensitive or involve cutting-edge tax issues. We work closely with our corporate lawyers to help structure transactions in a manner that is most tax-efficient for all parties involved. Our team includes former IRS rulings officials whose backgrounds and insights have proven to be critical to procuring favorable, timely responses and private letter rulings from the IRS. We also represent clients before the US Department of Treasury with respect to legislative and regulatory matters, and have been instrumental in influencing pending legislative proposals and regulations projects.
Private equity
We advise private equity funds—and investors poised to deploy capital for investments and acquisition activities—on all aspects of US and cross-border taxation. We provide counsel at each stage of the private equity life cycle, from fund formation and management, to transaction and investments, optimizing fund and portfolio company operations, and exit planning. We also provide tailored US inbound services to international and offshore funds undertaking US fundraising, establishing US offices and making US investments. Our international team represents all types of investment funds, pooled investment vehicles, fund sponsors and fund investors, including LBO funds, hedge funds, private equity divisions of investment banks, venture capital funds, mezzanine funds, public permanent capital vehicles, public fund managers, fund-of-funds, general partners, fund managers, and US, international, tax-exempt and institutional investors.
Spin-offs & restructurings
Our corporate spin-off and restructurings tax practice is unsurpassed in depth of experience, sophistication and volume. We are engaged continuously in planning and implementing some of the largest and most complex corporate separation, reorganization and integration projects. Given the unusually wide range of tax issues that arise in such engagements, we work closely with experienced lawyers in many of the firm’s core practices, and help coordinate the work of top accounting firms, economists, valuation consultants and other third-party advisors. We counsel public and private US- and non-US-based corporations on tax-free and taxable spin-offs and structures, manage related tax processes to ensure proper sequencing of transaction steps, prepare legal opinions and SEC filings, and work with the IRS to obtain tax rulings.
“The team understands our business and gets what motivates corporate decision-making.”
Chambers USA
Their tax team “understands my businesses and our planning ‘personality’ and delivers efficient, on-point advice. I trust and value their input… They work as a part of the team as problem solvers, and are very good about tailoring their level of involvement to what we need. We get ready access to the right expertise.”
Best Law Firms, Client Reference
Mergers & acquisitions
- Johnson & Johnson with the tax aspects of its $20 billion acquisition and integration of trauma products company Synthes
- JAB Holding Co. in its global merger of the coffee businesses of D.E. Master Blenders 1753, which is majority-owned by privately held JAB, and Mondelez International, to create the world’s largest pure-play coffee company, Jacobs Douwe Egberts
- Monsanto with the tax aspects of its $930 million acquisition of The Climate Corporation, a closely held company headquartered in San Francisco
- CVS Caremark with the tax aspects of its $2.1 billion acquisition of Coram, the specialty infusion services and enteral nutrition business of Apria Healthcare Group
- A global leader in signal transmission solutions for mission-critical applications, with the tax aspects of its acquisition of a leading manufacturer and developer of advanced connectivity technologies for the broadband service provider market
- A multi-national manufacturer of consumer food products in its acquisition and integration of a privately-held food company headquartered in Brazil
- CNH Global N.V. on the US and Italian tax consequences of its merger with Fiat Industrial N.V., which resulted in the third-largest capital goods provider in the world
- Exelon on the tax aspects, including federal state and renewable incentives, in multiple acquisitions of John Deere’s wind portfolio
- A leading multi-national retailer on the US tax consequences of the multi-billion sale of its consumer credit card portfolio
- Caterpillar on the tax aspects of its $8.8 billion acquisition and integration of Bucyrus International, a leader in high-productivity mining equipment
Private equity
- ABRY Partners and its portfolio company Securus Technologies, a provider of telecommunications and related services to the correction facilities market in the United States, with multiple add-on transactions, including the acquisitions of Cara Clinicals, Inc., JPay, Inc., and Guarded Exchange LLC
- Baird Capital Partners with the complete lifecycle representation of Backyard Leisure Holdings, Inc., a manufacturer of wood swing sets, playhouses, patio products and sheds, including the platform acquisition, add-on acquisitions and sale
- Comvest Partners with numerous transactions, including the acquisitions of BEL USA, a provider of promotional products and its subsequent add-on transaction of Branders.com, and separately the acquisition of Robbins Bros. Jewelry, Inc., a leading chain of engagement ring retail stores
- H.I.G. Capital on dozens of transactions in recent years, including most recently the separate acquisitions of Milestone Technologies, Inc., a provider of IT managed and professional services, ATX Networks Inc. and ATX Networks Holdings Canada Corp., a manufacturer of radio frequency and digital video processing equipment, and Fox River Fiber Company, LLC, a manufacturer of pulp for fine paper
- H.I.G. Capital with the complete lifecycle representation of Dent Wizard Holdings, LLC, a provider of on-site automotive cosmetic reconditioning services, including the platform acquisition, add-on transactions and sale
- Industrial Opportunity Partners with multiple transactions, including most recently the creation of El Dorado Packaging, Inc., the sale of E.B. Bradley Co., a leader in home building products, and the add-on acquisitions of WEK Industries, Inc., and WhiteRidge Plastics, LLC, by portfolio company Toledo Die & Molding, Inc.
- LaSalle Capital Group with the creation of its non-destructive testing platform, Avantech Testing Services, and the add-on acquisitions of Reliant Oilfield Services, Inc., and Lone Star Services, a provider of non-destructive testing and inspection services
- J.W. Childs Associates, L.P. with recent acquisitions, including a majority interest in Shoe Sensation, a family footwear retailer, and separately the acquisitions of KB Wines LLC, which owns the Kosta Browne Winery, a California producer of pinot noir, and KeyImpact Holdings, Inc., an independent food services sales and marketing agency
- Peak Rock Capital LLC with the complete lifecycle representation of Atlas Paper Holdings, Inc., a manufacturer of tissue products, including the platform acquisition, add-on transactions and sale
- Riverside Partners, LLC, with its acquisition of Contractor Management Services LLC, an independent contractor management services firm
Spin-offs & restructurings
- Coty in its announced “reverse Morris Trust” acquisition of beauty brands from The Procter & Gamble Company
- Tyco International with multiple transactions, including the spin-off of The ADT Corporation, the spin-off of Tyco Flow Control, and the merger of an indirect subsidiary of Tyco Flow Control with Pentair, Inc.
- RD.E Master Blenders 1753 BV with its global coffee joint venture with Mondelez International
State & Local Tax
Today’s businesses are being assailed on every front, as state and local tax authorities attempt to increase revenues and reduce budget cuts. Third-party attacks are also on the rise, with the plaintiffs’ bar increasing its use of class actions and whistleblower cases to reap potential windfalls in the tax arena.
The firm has one of the largest and most diversified state and local tax (SALT) legal practices in the United States. Our lawyers possess in-depth knowledge of the constantly changing tax laws and have the experience and judgment necessary to provide advice and advocacy of the highest caliber. We identify and develop coordinated, cross-jurisdictional solutions for businesses wherever they are subject to existing or potential taxes and work closely with our many state and local contacts in various departments of revenue and with legislators to resolve tax issues.
In the area of tax controversy and litigation, our SALT group is one of the few firms that has argued—and won—state tax cases before the US Supreme Court. These cases include two Supreme Court taxpayer victories in the “unitary” area as well as the landmark Quill sales tax case. We efficiently develop the critical facts, construct the most effective arguments and help clients chart the best course for resolving any matter, whether at the audit or administrative review level or in trial and appellate courts.
Our tax team has repeatedly earned top rankings by leading industry and legal publications. We have been named “Law Firm of the Year” in Tax Law and Tax Litigation by US News-Best Lawyers, “North American Tax Firm of the Year” by International Tax Review and “Tax Practice Group of the Year” by Law360. Chambers USA and The Legal 500 also have singled out our practice and individual lawyers for recognition. We are consistently sought as speakers at conferences throughout the country, and are regularly quoted in publications such as The Wall Street Journal, Bloomberg BNA, Tax Notes/State Tax Today, CFO.com and CBS MoneyWatch.
Administrative & judicial proceedings
Our state and local tax lawyers have handled as many, if not more, state tax cases across the country than any other law firm over the past 30 years. We understand that clients have different appetites for litigating state tax issues. Whether at the compliance, audit or informal conference stages or in litigation, we offer advice and advocacy, always seeking alternative and creative solutions to resolve tax disputes. When necessary and appropriate, our state tax attorneys litigate aggressively, but with respect, to resolve client tax problems. Regardless of a taxpayer’s litigation profile, favorable results are more likely each step of the way when a taxing authority believes the taxpayer has hired an attorney with an extensive litigation portfolio, a history of success, and a strong presence in the state tax controversy community. Our SALT attorneys meet this criteria.
Audit defense
Clients look to the firm to develop audit strategies that address issues raised by state and local tax auditors, and to preemptively identify and resolve potential issues. We understand the goals and methods of the lawyers and professionals who represent the taxing authorities, from drafting document requests to interviewing key corporate employees. Our team frequently takes the lead in audit matters, assisting clients in developing responses to requests for information and to specific proposed audit adjustments, and in negotiations with state and local revenue authorities. When necessary, we can also play a “behind the scenes” role. Either way, with decades of experience, we can recommend “best audit practices” for establishing credibility with agents and officials.
Digital/cloud taxation
As state revenue departments attempt to impose taxes on cloud-based models and digital content using antiquated legal regimes, cloud-service providers and users alike face a host of tax-related questions and risk. Our lawyers have been involved in the national debate and work with providers and consumers of cloud-based services and digital content to understand, react to and comply with the sales and income tax issues that they face in the new economy. We help businesses identify and adjust for risk early in the process. We also work with vendors to understand tax incentives available to foster high-tech build out of facilities and employment. Our lawyers have worked with the Streamlined Sales Tax Governing Board to develop definitions and relevant sourcing rules and have worked extensively with the National Conference of State Legislatures concerning how to address taxation of the cloud.
False Claims Act
In addition to managing normal audit risk, our clients increasingly face the risk of tax-related claims brought by third parties. Such risks include whistleblower claims brought by qui tam plaintiffs alleging an under collection of tax and proposed class action claims alleging an over collection of tax or a violation of consumer fraud statutes. The firm’s SALT Group is well versed in the defense of such claims. We have been at the forefront of defending against whistleblower claims filed under the Illinois False Claims Act over the past decade, including the leading appellate court decisions. We also regularly advise clients about how to avoid such claims. In addition, we routinely represent clients faced with the threat of tax-related class action litigation, and have achieved favorable results for clients in several such matters.
Incentives
State and local governments offer a range of incentives to encourage private investment, business expansion and job creation within their jurisdictions. When companies consider relocating, expanding existing facilities or adding jobs, we can help them offset costs and realize significant value by identifying and claiming the right mix of incentives packages. We understand that the key to obtaining incentives is timing, and that early involvement of experienced legal counsel can improve a company’s leverage when negotiating incentives with state and local officials before a planned investment is initiated. Our incentives practice includes lawyers and project-management professionals operating throughout the United States.
Planning
Our SALT practice provides planning services related to existing business relationships and practices (e.g., structural planning including addressing nexus and apportionment issues), as well as to specific pending transactions (transactional planning). Working with the client’s staff, our lawyers determine where proactive changes can be made to improve the client’s state and local tax situation. One set of tax costs that are often overlooked when planning transactions is the imposition of state and local taxes (such as sales and real estate transfer taxes) on the transaction. Our lawyers not only assist clients in avoiding these hidden pitfalls, but also help them achieve greater tax efficiency in their post-transaction operations.
State & federal legislation
Although traditional legal avenues such as planning, settlement and litigation are often the best courses of action to achieve the desired results for our clients, in some instances these are either unavailable or foreclosed under existing laws or regulations. In those instances, we offer legislative and lobbying initiatives to help achieve the desired results. Our services include monitoring specific issues and legislative initiatives, building consensus with other interested parties, preparing legislative proposals, drafting legislation and communicating proposals to the legislative decision makers.
Unclaimed property
Unclaimed property, including uncashed vendor payment checks, unused balances on gift cards and un-refunded customer overpayments, is a target by many states as a source of revenue. States are adopting enforcement provisions that overreach what often constitutes unclaimed property, conflict with federal precedent, create data privacy issues, and expose businesses to unanticipated liabilities and significant penalties for noncompliance. We represent clients across a broad range of industries—including health care, manufacturing and retail—on unclaimed property issues, particularly those clients embroiled in multi-year, multi-state unclaimed property audits. Our counsel includes advising on the onerous document production process and offering efficient methods to limit both the scope of the responses and potential liability. In addition, we work with non-compliant companies—often following an acquisition—on state voluntary disclosure agreements to become current on state unclaimed property obligations.
Tax
Tax considerations shape how your business structures transactions, financings, and international investments. Our lawyers advise you on global tax compliance and design tax strategies that support growth, help mitigate financial exposure, and strengthen your business operations across jurisdictions.
Our tax lawyers represent financial institutions, investors, and businesses – including more than half of the Fortune 100. Working across the US, Europe, and other major markets, we align tax strategy with your global business strategy while helping you anticipate regulatory and controversy risk.
Tax strategy is most effective when integrated early into decision-making. Our tax lawyers advise you on federal, state, local, and international tax laws that affect your transactions, investments, financings, restructurings, and cross-border operations. We also help you evaluate the tax implications of evolving business models, supply chains, and operating structures as your business expands internationally.
Our tax law practice includes advising on transfer pricing planning, advance pricing agreements, and cross-border tax controversies. We handle sophisticated transfer pricing disputes worldwide and engage with taxing authorities and organizations involved in international tax policy and enforcement – including the Organisation for Economic Co-operation and Development (OECD), the Internal Revenue Service (IRS), and tax authorities throughout Europe and globally.
Tax disputes can affect enterprise value. Our team includes former IRS administrators, Department of Justice (DOJ) Tax Division lawyers, Tax Court clerks, and legislative advisors who understand how tax policy is developed, interpreted, and enforced. This experience strengthens our ability to advocate before taxing authorities and guide you through examinations, administrative appeals, and litigation before trial courts, appellate courts, and the US Supreme Court.
Tax Controversy & Litigation
Our Tax Controversy & Litigation Group brings extensive experience and in-depth knowledge to help clients resolve tax disputes inside and outside of the courtroom.
From the planning stages of a transaction or reorganization to any challenge brought by a taxing authority, our tax controversy and litigation lawyers are advocacy-oriented. We work with corporations, private equity funds, partnerships, and high-net-worth individuals to develop bespoke solutions that minimize risk, protect interests, and achieve the most favorable outcomes. By partnering with clients across diverse industries, including technology, energy, and life sciences, we gain deep insights into their business, enabling our tax team to strategically advise on specific disputes.
Founded almost a century ago, the firm is one of the largest tax law practices in the United States. Our tax controversy and litigation lawyers collaborate seamlessly across our broader tax practice, as well as with the firm’s other leading practice groups, including Private Client, White-Collar, and Supreme Court & Appellate Litigation. This integrated approach and dedication to clients’ best interests have earned our tax controversy and litigation team recognition as a leading practice by preeminent publications such as Chambers and Partners, Legal 500, and International Tax Review.
Our tax controversy and litigation lawyers represent clients in various complex matters, including:
- International tax and transfer pricing
- Corporate and partnership tax issues
- Tax credits and incentives
- Gift and estate taxes
- Excise and specialty taxes
- Criminal tax defense
- Non-US tax controversy
- State and local taxes
Tax Structuring
One of the first and most critical steps in any tax-planning process is the creation of effective financial and tax structures that can withstand the scrutiny of taxing authorities and regulatory agencies. Our experienced tax lawyers work with closely held businesses, publicly traded corporations and multinational enterprises to develop, document and implement cutting-edge solutions that help achieve business objectives and minimize tax liabilities.
Our closely held business group focuses on the unique tax, corporate and other issues facing privately held businesses and their owners, with a focus on family-owned businesses. Our corporate taxation team offers a broad range of tax structuring counsel to tax clients and their affiliates organized as C corporations for US federal income tax purposes. The firm’s pass-through taxation lawyers advise on the use of partnerships, limited liability companies, S corporations, real estate investment trusts (REITs), and other pass-through entities in sophisticated tax planning.
We have highly experienced lawyers who practice in the area of structured investments and derivatives, offering a full range of legal counsel relating to financial products, funds (both registered and unregistered), derivatives, tax credit investments and insurance products. Finally, as one of the preeminent advisory firms in the area of international supply chain planning, we help establish the legal entity structures under which a multinational enterprise develops, produces, markets and sells its products around the world.
Together, we help clients with the formation, operation and unwind of all forms of domestic and international joint ventures, private equity funds in fund formation and acquisition transactions, operators and investors on structuring complex real estate transactions, and other pass-through entities on achieving tax-efficient operations.
Captives
Our lawyers are pioneers in the structuring of alternative risk transfer mechanisms, specializing in captive insurance companies of all types. We focus not only on the development and structuring of creative risk retention and transfer solutions, but also on the operation of efficient risk-management programs designed to enhance business performance by aligning economic incentives with loss minimization to lower the enterprise’s cost of risk. We regularly advise on high-deductible and self-insured retentions, trusts, retro programs, offshore and onshore captives, risk retention groups, risk purchasing groups and group captives. For those clients whose captive arrangements are being challenged by the IRS, we offer effective tax controversy services, drawing on the experience of lawyers who have successfully resolved disputes at Examination, Appeals and the United States Tax Court.
Closely held businesses
Our Closely Held Business group represents 28 of the top 100 (including seven of the top 10) largest privately held businesses in the United States. We focus on the unique tax, corporate and other issues facing closely held businesses and their owners, with an emphasis on family-owned businesses. We provide comprehensive guidance on tax matters arising in the context of daily operations, mergers, acquisitions and other transactions, liquidity events, succession planning transactions, inter/intra-family disagreements (including multi-generational issues), liquidity needs and access to capital. We regularly develop client-service teams to provide effective tax counsel in the context of related legal and business concerns; these teams often include lawyers from our employee benefits, intellectual property, corporate and securities groups.
Cooperatives
We are one of the only law firms in the United States that provides comprehensive legal services to cooperative organizations. We represent cooperatives engaged in a broad range of products and services, including the manufacturing, marketing and wholesale distribution of agricultural products, farm supplies, hardware, groceries, hospital supplies, transportation products, credit and other financial services, electricity, telephone services and housing. We represent clients in disputes with the IRS, before legislative and regulatory bodies, and—in conjunction with lawyers from throughout the firm—in handling a broad range of corporate transactions, financings, intellectual property and other issues. In addition, we have worked with many entities in the Farm Credit System and have advised numerous agriculture-related trade associations.
Partnerships & joint ventures
National and multinational companies are increasingly forming international joint ventures with related and third parties as an efficient means to enter the global marketplace. When these joint ventures take the form of a partnership for US federal income tax purposes, it is essential that the parties have a comprehensive understanding of the US partnership and the international tax opportunities and consequences of the structure. It is equally important to take account of the tax issues that arise in a contractual alliance that is not intended to constitute a tax partnership. Our industry-leading partnership and international taxation lawyers guide clients through the complex tax issues related to all stages of international joint ventures, including formation, operation and exit.
Pass-throughs
We advise clients on the use of partnerships, limited liability companies, S corporations, real estate investment trusts (REITs), and other pass-through entities to assist in sophisticated tax planning, including avoiding double taxation, obtaining the full benefit of tax losses or tax incentives, and minimizing the tax impact of asset acquisitions or dispositions. We help individuals, investor groups and owners with the formation, operation and unwind of domestic and international joint ventures, counsel private equity funds in fund formation and acquisition transactions, and represent operators and investors in structuring complex real estate transactions and other pass-through entities in order to achieve tax-efficient operations.
Private Equity
Private equity firms operate in high-stakes environments where speed, execution, and risk directly impact investment returns. Our private equity lawyers advise sponsors and their portfolio companies throughout the investment life cycle. We help you execute transactions, manage risk, and address the legal, commercial, and regulatory issues that impact how your investment performs.
Our private equity team includes more than 150 lawyers in 20+ offices worldwide. Working across disciplines including finance, tax, antitrust, investment funds, restructuring, and litigation, we provide integrated guidance to support domestic and cross-border investments across industries and asset classes.
We advise you on acquisitions, dispositions, recapitalizations, carve-outs, minority investments, joint ventures, and other strategic transactions. Our private equity lawyers structure deals and negotiate terms to help you manage risk, create value, and support performance across all stages of your investment – from fundraising to exit.
Competing stakeholder interests often lead to disputes. Disagreements over governance, deal terms, and post-closing obligations can create significant exposure for private equity firms and portfolio companies. Our litigators work alongside deal teams to help you navigate disputes while preserving enterprise value. We represent you through mediation, arbitration, and litigation in state and federal courts, including the Delaware Court of Chancery.
With one of the most active transactional practices in the US, we understand how complex deals are structured, negotiated, and executed. By combining deep market knowledge with cross-disciplinary capabilities, our private equity lawyers help you mitigate risk and advance your strategic goals throughout the life cycle of your investment.
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