How to Avoid a Big Tax Bill in the Year of M&A

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How to Avoid a Big Tax Bill in the Year of M&A
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Mergers can bring windfalls for investors. Here's how to avoid the tax headaches that sometimes come with those.

When one company seeks to buy another, shareholders of the target company often applaud an immediate run-up in value. But beware: deals can also come with a huge tax bill unless you’re careful.

This year has brought a bumper crop of mergers. U.S. merger volume jumped 27% to a record of about $1 trillion in the first half of 2019 compared with the same period in 2018, according to data from Dealogic.

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