Tax: complicated, scary. Best left to specialists? Yes… But you need to understand the dynamics of what is happening on Tax in your deal, as the agreement struck will go straight to risk and value.

Tom Eyre-Brook, Senior Associate at Hogan Lovells, talks Ben through the tricky points that relate to Tax in a typical M&A transaction. Among other things, he explains how the market tends to treat limitation periods and liability caps on Tax and why, and the awkward interaction of Tax provisions with warranty and indemnity insurance.

Tom’s ‘watch out’ for the unwary relates to how stamp tax can catch a negotiated management earn-out and end up with unforeseen liability.