If you are a non-NZ resident or an overseas company seeking to acquire a business in New Zealand, what factors do you need to take into account?
KPMG has a highly skilled team of mergers and acquisitions and debt advisory specialists with the lead advisory, tax and accounting skills required to help you achieve your expansion objectives.
When acquiring a business in New Zealand, you need to consider valuing the business, possibly based on formal due diligence and also how to structure the acquisition from both a legal and tax viewpoint should you choose to proceed.
You must also decide whether to acquire the business assets or the business entity itself in addition to confirming what legal entity should make the acquisition and how to fund the purchase optimally.
If acquiring the business entity, issues such as continuity of shareholding for tax losses and imputation credits will come into play. We recommend pre-acquisition planning or restructuring to explore how to increase the overall benefit to both parties.
It is also worth considering in advance, which entity will be making the acquisition and making sure that costs are incurred in an entity that can optimise the benefit of deductions for income tax and GST.
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If you would like assistance now, please contact us for more information or to request an interview about acquiring a business in New Zealand.