Client Overview
An M&A deal between an AI company and a video production company, requiring a fully integrated finance function across multiple entities and jurisdictions. Unreconciled was brought in at the core company level to structure and integrate their finance operations, tax planning, and compliance for a smooth transition.
The Challenge
- Multi-Entity Finance Integration – Merging two businesses with different accounting systems, financial workflows, and tax structures.
- Cross-Border Tax Optimisation – Ensuring that the group didn’t overpay taxes across jurisdictions while leveraging tax benefits where applicable.
- Transfer Pricing & Loss Carryforwards – Structuring intercompany financials to legally and efficiently manage profits, losses, and tax liabilities across three jurisdictions (UK, US, and another country).
- Building a Scalable Finance Function – Setting up financial reporting, controls, and compliance for each entity in the group.
Our Approach
- 🔹 Finance Function Setup & Integration:
Built a consolidated finance structure across all three jurisdictions to unify accounting, reporting, and compliance.
Ensured that the finance team at each entity followed a cohesive reporting structure to support group-wide financial clarity. - 🔹 Tax Planning & Compliance:
Developed a cross-border tax strategy, ensuring the business could carry forward losses efficiently and avoid unnecessary tax exposure.
Saved the company $300K in tax liabilities in Year 1, with ongoing tax savings in future years.
Structured transfer pricing agreements to maintain tax efficiency and compliance across jurisdictions. - 🔹 Regulatory & Legal Compliance:
Worked with tax experts in three countries to ensure full compliance with local and international tax laws.
Implemented legal entity structuring and intercompany accounting processes to optimise tax benefits while staying within regulations.
The Results
- $300K in Year 1 Tax Savings – Optimised the tax structure to reduce liabilities and improve cash flow.
- Seamless M&A Finance Integration – Successfully set up and aligned financial functions across three jurisdictions in just six months.
- Scalable Financial Systems – Created a finance function built for long-term growth, ensuring smooth financial management post-M&A.
- Regulatory Compliance Across Borders – Ensured tax compliance while minimising tax exposure in each jurisdiction.
Conclusion
Through strategic M&A finance integration, tax planning, and transfer pricing structuring, Unreconciled helped this AI and video production merger achieve seamless financial operations, major tax savings, and a strong foundation for future growth.
From multi-entity complexity to a streamlined, tax-efficient finance function delivered in six months.
