When it comes to acquiring a business, knowledge is power. Taking time to thoroughly examine the tax profile of a target corporation will help minimise the risks and ensure that an acquisition will not be derailed.

All too often, state and local tax issues are overlooked and misunderstood by business owners who are eager to secure a deal, but have little familiarity with domestic regulations.

It’s not unusual for substantial tax liabilities to be discovered after an agreement has been made, creating untold problems. Understanding the various types of tax implications were one to make an acquisition in, for example, the US, is the best place to start.