Greg and team offered state tax due diligence services to a company in the Manufacturing industry. The company (“Buyer”) was interested in acquiring a new company (“Target”) that had a sizeable state presence primarily due to the hiring of remote workers. The buyer wanted to ensure the Target’s compliance with all applicable state and local tax laws, not wanting to overpay for the Target and/or assume liability for any unpaid taxes, including penalties and interest.

Through conversations with the Target and investigation of its historical and present state information, such as sales, payroll, and property, we determined the Target’s tax filing requirements and estimated the potential tax exposure, both past and current, for the Buyer, allowing it to make a more informed acquisition offer to the Target.

Our due diligence services contributed to the Buyer’s valuation of the Target and offered aid as it decided on the structure of the acquisition.

Note: This work was performed prior to joining Stout.