An acquirer based in a low-tax country may be able to generate higher cash flows from acquiring a foreign target than an acquirer based in a high-tax country.

Question

Quizplus · Accepted Answer

An acquirer based in a low-tax country may have lower tax obligations on the profits generated by the foreign target, resulting in higher cash flows. In contrast, an acquirer based in a high-tax country may have higher tax obligations, reducing the cash flows generated from the acquisition.

An Acquirer Based in a Low-Tax Country May Be Able