An acquirer based in a low-tax country may be able to generate higher cash flows from acquiring a foreign target than an acquirer based in a high-tax country.

Question

Quizplus · Accepted Answer

An acquirer based in a low-tax country may be able to generate higher cash flows from acquiring a foreign target due to the potential tax benefits, such as lower tax rates on foreign earnings or access to foreign tax credits. Meanwhile, an acquirer based in a high-tax country may face higher tax liabilities, which could affect their ability to generate higher cash flows.

An Acquirer Based in a Low-Tax Country May Be Able