The analysis of mergers in terms of tax advantages

For the purpose of juridical unity, the coalescence of two or more legally independent businesses is defined as merger. With respect to TFRS 3, the Standard of Mergers, incorporation of a new company to a corporate group is considered as a merger, a merger of two companies belonging to the same corporate group is not regarded as a merger on the other hand. Company mergers are of several objectives such as growing, creating synergy, taking advantage of economies of scale, entering new markets, and benefiting from competitional advantage. Utilizing tax advantage is also one of the most important motives for company mergers. In our study, mergers of publicly held corporations, dated to January 2015 and December 2018 period, were selected as a sample, and it was observed that all mergers analyzed were in-group mergers. It was concluded that 95% of the mergers in our sample have tax advantages and enjoy this advantage.