Mounting Costs of Corporate Finance

NIGEL POPPLEWELL CTA (Fellow) shows why corporate finance transactions are becoming increasingly expensive.

ONE OF THE roles of a corporate tax lawyer is to provide corporate finance support. Simply stated this involves supporting a corporate finance unit when it is doing deals. Most importantly it consists of negotiating contractual protection on behalf of buyers sellers guarantors funders etc. on the sale and purchase of shares. It also entails asset deals which involve complex but different issues which are not dealt with in detail in this article.

Corporate finance lawyers see this tax support as mundane commodity work requiring extensive use of precedents negotiation around certain areas of contention which consequently should not involve much cost. This is usually reflected in the budgets which they agree with the client.

The corporate...