PE Portfolio Tax is one of PwC Sweden's service offerings within tax, where we offer strategic value creating activities for Private Equity owned portfolio companies. By building long-term relationships with our clients, we understand our clients’ actual needs and can provide structured and coordinated holistic tax advice.
With our broad expertise within tax and long practical experience, we offer tailored services in the field of Swedish and international income tax, VAT and transfer pricing. We also have a wíde international network with carefully chosen colleagues who, like us, have extensive experience with tax in a private equity environment.
Our ambition
Our ambition is to create a long-term relationship and offer value creating advice throughout the entire ownership period, i.e. from when the portfolio company is acquired until the company is ready for divestment. For each client, a tailored assessment of the company’s current standing is made based on geographical footprint, operating strategy and historical tax management to identify challenges and opportunities from a tax perspective.
We are present during all stages of ownership
In our work we have chosen to divide the ownership of a portfolio company into three separate phases with different needs for tax advice in each phase:
Post Deal;
Holding; and
Exit Readiness.
PE Portfolio Tax offers tailored tax services during all phases. When giving advice, we always apply a holistic approach to ensure that all relevant tax areas are considered and that our advice can be implemented in a practical and effective way.
You can read more about each phase and how we can assist depending on where in the journey you currently are by clicking on the above links for each phase.
"We strive to be your trusted house doctor and partner in all stages of your journey. Together we will connect the dots, take advantage of the individual strength in your unique structure and increase value."
Post Deal
The Post Deal phase starts following the acquisition of a portfolio company. Our focus in this phase is to ensure that the acquired portfolio company is correctly and efficiently integrated with the acquired group. We also prepare a plan to manage identified tax risks.
PE Portfolio Tax will initially assist in value creating tax activities by prioritizing between different activities identified. Activities which reduce risks and create value together with their implemented time factor will be prioritized during this phase.
Prioritization of risks and integration aspects
In the Post Deal phase, we assist in ensuring an efficient and correct integration between existing and new parameters regarding e.g. financial commitments, upstreaming of funds, holding company integration, transaction costs, VAT and transfer pricing. We visualize identified actions and prioritize between these based on a hands-on well proven developed tool named the PE Portfolio Tax Heat Map.
Strategic tax management
Working strategically also within the area of tax will result in better long term planning, improved cash flow position and lower costs - all of which are value creating factors and contributes to the overall value of the business. We plan, discuss and assist with building a tailored strategic tax plan which ensures correspondence between preferred tax structure and the operational business plan.
Holding
The Holding phase is often the period that is somewhat less intensive and in many cases the longest phase in relation to Post Deal and Exit Readiness. During this phase, our focus within PE Portfolio Tax is to assist portfolio companies to maintain an effective tax management and tax function as operational changes are implemented. This to ensure effective tax risk management and profit optimization. Value creating tax activities are tailored and implemented.
Continuous adjustment of the tax structure in relation to the operational structure
In the Holding phase, we focus on identifying value creating activities in line with the group's operational structure. We assist in identifying activities that improve the cash tax situation and we tailor tools and processes to facilitate the understanding of how operational changes affects the tax situation. Tax advice which are not correctly implemented many times results in risks rather than benefits, this is why we work closely with our clients and provide practical advice on implementation and compliance. We support the portfolio companies in focusing on value creating tax activities and reduce unnecessary risks that easily can arise if tax is not part of the operational planning.
Proactive collaboration to tailor a correct and easily managed tax structure
During the Holding phase, our focus lies i.a. on analyzing the previous year's tax results and challenges where we follow up with suggestions for possible improvements. Through our holistic way of working, we get to know and understand the portfolio company's tax strengths and challenges, and with continuous and proactive collaboration, we can ensure an efficient and manageable tax structure that is continuously adapted to operational changes in the business.
Exit Readiness
The Exit Readiness phase is the portfolio company's last journey together with the current owner and often starts 1-2 years before the planned exit. During this phase, preparations for the upcoming divestment begins and discussions are held about how the company can best be prepared to run through the upcoming tax due diligence process as effortlessly and with as low risk as possible.
Health Check Review
Together with our key contact, the portfolio company's strengths and challenges are discussed and tested within six different tax areas. Using the PE Portfolio Tax Wellness Tool - “PEP-Talk”, the current situation is tested and discussed in relation to the desired outcome. PE Portfolio Tax assist to coordinate, prioritize and establish an action plan with concrete activities, after which we work together to implement the agreed activities ahead of exit. All work is compiled and documented in our easy-to-use documentation system that can be replicated when setting up data rooms.
Risk strategy, tax history and value-enhancing tax structure
PE Portfolio Tax outlines, lifts and document the portfolio company's tax strategy, tax history and completed value creating activities that also benefit a new owner. A proactive approach and a strategic plan regarding tax, results in increased value in the form of reduced risks and improved efficiency. A strategic view on tax will benefit not only the portfolio company as such, but also current and future owners. This is particularly important for private equity held portfolio companies considering the complexity that usually exists in the area of tax within these groups.
Kontakta oss
Simon Björkheim
Senior Manager, CIT Specialist PE Portfolio Tax, PwC Sverige
Tel 0768-52 29 73
