M&A activities have increased over the years with more and more businesses opting for inorganic growth strategies. With liberalisation of FDI laws, the number of foreign collaborations by Indian businesses and foreign giants wanting to increase their foothold in India through brownfield investments has also grown manyfold, thus increasing the level of complexity in structuring.
At KCM, we provide end-to-end solutions to clients with diverse objectives / business strategies (reference/link to strategy services) and aim at providing a solution specific to their needs such that it maximises the benefits, reduces costs, improves the level of compliance and governance, and simplifies the complexities involved in today’s regulatory framework.
A crucial part of every transaction / strategy (reference/link to strategy services) is how the transaction is structured which ultimately maximises value for all stakeholders through tax and regulatory optimisation structures. We offer services to corporate as well as non-corporate entities and HNIs with the objective to optimise costs, ensure compliance and pre-empt risks.
Our Transaction Advisory team provides structuring, restructuring and optimisation services to clients and supports them in creating the ideal structure to implement a given strategy (reference/link to strategy services) by streamlining the requirements under various laws, including Income Tax, FEMA, Companies Act, Stamp Duty, SEBI, and disclosure & reporting requirements under Ind AS.
The team has developed expertise in this area through the experience of successfully closing numerous transactions, both domestic and cross border, involving complete takeovers, JVs, as well as staggered divestments and restructuring covering:
- Externalisation of structure enabling repatriation of profits / sale proceeds of Indian company / group
- Group restructuring for Indian and foreign MNCs operating across multiple jurisdictions and evaluating holding company jurisdiction
- Suggesting structures for tax optimal repatriation of funds to Indian Promoters
- Evaluating existing structures from the general and specific anti avoidance rules perspective and suggesting alternatives in compliance with the laws
- Tax-optimal Repatriation of profits from overseas subsidiaries or investments
- Evaluation of applicability of ‘Indirect Transfer’ tax and ways and manner of mitigating or minimising the same
- Structuring Educational Institutions to be governed in most effective manner considering laws relating to Public Charitable Trusts
- Structuring transactions between group companies across multiple jurisdictions with a view to benefit from tax incentives across different countries
- Structuring from point of view of exit for companies preparing for sale
- Evaluating applicable tax incentives under the law for specific categories of entities and suggesting structures to benefit from the same
- Restructuring of capital involving advice on the optimum capital structure for new entities considering future funding requirement, repatriation and exit opportunities