Carve-outs are a hot topic of discussion.  These transactions can generate significant value in both the remaining and separated businesses and are complex from a tax and legal perspective. In this series of Dbriefs we explore key aspects of the transaction lifecycle, with a focus on corporation tax, VAT, employment taxes, and legal matters. This first instalment addresses the main tax and legal considerations when preparing for and executing these transactions - and also highlight some common pitfalls.  We’ll discuss typical considerations that is not addressed correctly may result in: 

• Missed opportunities for tax synergies 
• Significant value erosion arising from lack of planning and poor execution  
• Operational challenges resulting in an inability to conduct a separate business from day one
  

Later Dbriefs will cover specific topics, such as transitional service agreements and transfer pricing, finance and treasury in more detail.