What are the tax implications of mergers and acquisitions? Part 2

The changes brought about by the Tax Reform Act of 1986 are the most significant to occur in more than 25 years. Because of these changes, buyers and sellers must carefully negotiate any mergers or acquisitions to ensure each party's tax status remains intact. For-profit as well as not-for-profit institutions must carefully consider the new tax rules involved with a change in ownership. This article is the second in a series on merger and acquisition. Other articles in the series will discuss legal issues, purchase investigations, and capital planning.