Case Study: U.S. Entertainment Company Achieves Tax-Efficient Cross-Border Acquisition Planning with Prager Metis

U.S. Entertainment Company builds a tax-efficient cross-border acquisition structure with Prager Metis

The client, a U.S. entertainment company, sought assistance from Prager Metis for the tax-efficient cross-border acquisition of a foreign entertainment group. This target owned valuable intellectual property and was involved in sales and licensing. The challenge was to evaluate various acquisition structures to find the most optimal approach for their operational and future sales goals.

Prager Metis evaluated multiple options, including asset and stock purchases with different elections, to determine the best structure for deferring U.S. tax, utilizing foreign tax credits, and achieving a low global effective tax rate. The vendor helped the client adopt a highly tax-efficient structure that was well-aligned with both their immediate operational objectives and their ultimate sales goals.

U.S. Entertainment Company