Wayfair M&A due diligence report

Our report highlights pressing issues

The Wayfair ruling has made M&A due diligence more critical than ever, considering the peril when a deal target has historic nexus and exposures. A buyer cannot simply register to become compliant going forward without cleaning up the past, as that may open it to liability for several past years, and also interest and penalties. Grant Thornton’s professionals help you understand all aspects of a deal to overcome challenges and get to a smooth closing.

What’s inside

The report specifies how a target’s historic noncompliance can lead to exposure for the buyer. Because sales tax represents a fiduciary relationship between the customer and the state, if it’s not collected and remitted properly, it can become a liability.

We’ll examine how to:

Sort through the complexities Wayfair has created for M&A due diligence
Identify elements to generate quality exposure calculations
Discover if Wayfair applies to income tax as well as sales tax
Be diligent if a party tries to obtain reps and warranties insurance as part of the deal

Dealmakers wrap their head around Wayfair

The Wayfair ruling created a potential bounty for states and also bountiful complexities for those conducting tax due diligence in transactions. M&A dealmakers must vigilantly sift through due diligence and excavate the past. That’s because a deal target may have historic nexus and exposures. A buyer cannot become compliant going forward without first cleaning up the past, or it may be open to liability, interest and penalties.

Wayfair is like a gold rush for states

We’ve got your back

Find out how Grant Thornton professionals can help you delve into data points like the number of transactions and whether tax has been collected. And don’t forget income tax post-Wayfair; many states are looking at it. Companies may find as well that they have to collect sales tax and also pay it on what they buy to do business.