The growth in litigation of M&A deals is starting to show that the tax deed that should be a buyer’s protection, isn’t always working as it should. One factor that many cases have in common is an (alleged) ambiguity between the parties as to what they agreed and what the tax provision drafting actually means in practice. How can these problems be avoided? Use the standard form precedents with caution, remember to take into account the details of the actual deal on the table, and make sure you know what you (or your client) are signing.
