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.
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