Note: This article was originally published on April 25, 2025. It has been updated to reflect new insights following the publication of our recent follow-up piece.
We break down the top five tax factors that you should consider during each investment stage, revealing where opportunities lie, where value may be lost, and how tax and structuring decisions can directly impact your returns. In our next article, we will cover our strategic approach to tackling these challenges.
To get started, it’s important to ask the right questions.
A clear investment strategy aligns decisions with investor goals, risk tolerance, and future capital needs. Here are the foundational questions to consider:
Once the deal closes, tax strategy shifts focus to reducing liabilities, supporting growth, and managing complexity. As you scale, thoughtful tax planning can help protect margins and reduce friction. The following questions can reveal opportunities for cost savings and strategic planning:
Tax planning for exit starts long before a sale is imminent. Structuring for tax efficiency, identifying hidden value, and preparing the entity for due diligence can drive better outcomes. Consider the following questions when planning for an exit:
At Elliott Davis, we work with investors at every stage of the investment lifecycle, from deal structuring through due diligence to operational optimization and exit planning. Our professionals help uncover tax efficiencies, reduce tax liabilities, and build flexible strategies that support growth, deal execution, and value creation.
Let’s talk about what comes next for your business. Reach out today to get started.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.