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The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions
Dissertation (MBA)--University of Pretoria, 2010.
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| Format: | Thesis |
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University of Pretoria
2013
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| _version_ | 1867613719901503488 |
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| access_status_str | Open Access |
| author2 | Ward, Mike |
| author_browse | Ward, Mike |
| author_facet | Ward, Mike |
| collection | Thesis |
| dc_rights_str_mv | © 2007 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria |
| description | Dissertation (MBA)--University of Pretoria, 2010. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/23418 |
| institution | University of Pretoria (South Africa) |
| last_indexed | 2026-06-10T12:40:37.576Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/23418 The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions Ward, Mike pkweza@sars.gov.za Kweza, Philip UCTD Tax Dissertation (MBA)--University of Pretoria, 2010. When mergers and acquisitions are conducted, valuation plays an important role in establishing a fair market value (FMV) of a target company. A number of variables including direct taxes are considered during the valuation process. This study looks at the impact of indirect taxes on the valuation result of target companies involved in mergers and acquisitions. Target companies considered for this study were those from different industries that were involved in mergers and acquisition transactions in 2004/2005 period, had at least three years of financial information available and had paid capital gains tax (CGT), an indirect tax, following a successful conclusion of the transaction. Research showed that there is likelihood that valuation result of target companies involved in mergers and acquisitions is significantly different when valuation included CGT compared to when valuation excluded CGT. Furthermore, considerable savings, implying higher ROI, could be realized should corporate acquirers and private equity factored in the effect of indirect taxes on FMV of target companies especially in industries where there are considerable under-valued operating assets. Effective tax rates can be determined for different industry groups and they can be mathematically be modelled with fair accuracy. Gordon Institute of Business Science (GIBS) unrestricted 2013-09-06T15:17:36Z 2010-06-16 2013-09-06T15:17:36Z 2008-04-01 2010-06-16 2010-03-23 Dissertation Kweza, P 2007, The impact of indirect taxes and the income tax Act on corporate valuation in mergers of acquisitions, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/23418 > G10/148/ag http://hdl.handle.net/2263/23418 http://upetd.up.ac.za/thesis/available/etd-03232010-135418/ © 2007 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria application/pdf University of Pretoria |
| spellingShingle | UCTD Tax The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions |
| title | The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions |
| title_full | The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions |
| title_fullStr | The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions |
| title_full_unstemmed | The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions |
| title_short | The impact of indirect taxes and the Income Tax Act on corporate valuation in mergers and aquisitions |
| title_sort | impact of indirect taxes and the income tax act on corporate valuation in mergers and aquisitions |
| topic | UCTD Tax |
| url | http://hdl.handle.net/2263/23418 http://upetd.up.ac.za/thesis/available/etd-03232010-135418/ |