Managing the TP aspects of M&A integration: TP Masterclass interview with Adnan Begic

We recently began a new series of Transfer Pricing Masterclass Interviews. The first was with Adnan Begic, a hugely experienced and widely admired expert on the subject, who is Head of Transfer Pricing Asia-Pacific for the Michelin group.

The starting point for the interview was the fact that traditional TP due diligence on a target group rarely covers the issues which make the biggest practical difference for the buyer.

So I asked Adnan to walk us through his thought processes when faced with a new M&A target, from the perspective of the TP / tax function of the buying group.

The key issues that he raised included:

• The differences between acquiring core and non-core businesses
• Dealing with differences in TP policies, as between target and buyer
• The critical importance of aligning ERP systems, in order to achieve M&A synergies

You can see the 30-minute interview in full here. We’ve also included a transcript of the conversation.