Tax Consolidation

In a post tax consolidation environment, the tax depreciation benefits flowing to a buyer are a function of the market value of plant, machinery & equipment.

American Appraisal provides bidders and successful acquirers with current market valuations of plant, machinery & equipment to ensure that optimal tax benefits are available to them as a result of the acquisition.

As a key driver in many transactions is the income shelter provided by the tax depreciation available to the purchaser resulting from the acquisition. Because an acquisition effectively crystallises a new cost base for the assets, the depreciation available to the acquirer is often very different to that currently enjoyed by the vendor.

Improved realisation outcomes for vendors
A current market valuation of the tax depreciable assets often provides potential acquirers with invaluable information that can result in an improved realisation outcome for the vendor. Should the bidder be successful any valuation work completed pre-acquisition can be developed into a robust document to support tax up-lift positions taken by the acquiring entity.

American Appraisal is experienced in handling any valuation issue arising from tax legislation. Our independence and expertise is recognised by tax authorities.

See our work on tax consolidation for a major agricultural supply chain company.