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Why Transfer Pricing Matters in Post-Merger Integration and How to Manage Risks Effectively

Post-merger integration is one of the biggest challenges companies face when doing a global merger and acquisition (M&A) transaction. This article will examine the potential risks and benefits of addressing transfer pricing early in the integration process, covering aspects ranging from internal restructuring to process integration.

Taking proactive measures to manage transfer pricing can help companies mitigate tax and transfer pricing risks, avoid operational challenges of restructuring, and fulfill their legal obligations. Our previous article discussed the best transfer pricing and due diligence practices in international mergers and acquisitions.

Transfer pricing is an important part of post-M&A integration for multinational entities. It is essential to have a comprehensive transfer pricing strategy that aligns with the business objectives of the merged entity. Proper planning and documentation of transfer pricing policies can help avoid potential tax disputes and penalties. Multinational entities should seek the advice of transfer pricing experts to develop a strategy that meets their unique business needs.