Client : Leading International Auction House
Service Offered : M&A Tax & Regulatory Services
Sector / Industry : Automobiles & Auto Components
The transferor company had made heavy capital
investments to manufacture large industrial-size
bearings. However, the business did not progress as
projected. Furthermore, heavy capital investments and
moderate manufacturing of industrial-size bearings
resulted in the underutilization of capacities, thereby
resulting in the company incurring huge operating
losses. The losses made the transferor company’s net
worth negative.
The client, situated in Bengaluru, India, is a global
leader in the manufacture of bearing and lubrication
systems.
The client had separate entities in Bengaluru. The
transferor company was engaged in the manufacturing
of oil seals, large industrial-size bearings and
rendering technical services. It sustained operating
losses.
Nexdigm’s overall project management approach
helped achieve the management’s objective of
completing the project within the desired timeline,
delivering to the management’s expectations.
The structure brought substantial tax savings due to
carried forward losses. The merger ensured the
revival of prospects of a loss-making company and
offered an optimum product mix for the customers.
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