Investment highlights of Ireland
Are you looking to acquire international companies, why not Ireland?
Despite the historic downturn Ireland is still ranked as one of the best countries to carry on a business. It is ranked 1st in Europe for ease of doing business and 2nd globally as the most attractive country for Foreign Direct Investment (FDI). In excess of 1,000 companies have chosen Ireland as their strategic location in Europe.
Forbes Magazine has ranked Ireland as the “best country for business”, moving up from sixth pace in the rankings for last year.
Reasons why foreign companies invest via M&A in Ireland
Various reasons exist why foreign investors invest in Ireland. The country has a population that is well educated and it is easy to establish a business. The fact that English is the language spoken makes it logic for US or Asian firms to choose Ireland as its base to enter the European Union. The tax climate is also an important factor as we describe further in detail below. To summarize these are some of the main factors for FDI into Ireland:
- Easy of language (English spoken)
- Highly educated and young population
- Pro-Business Location
- Tax benefits and tax friendly country
Tax advantages of doing an investment via M&A in Ireland
Ireland has always had a friendly tax environment for companies. Specific tax heavens exist in various locations of the country like the Shannon industrial park. Here are some of the specific tax reasons why these companies choose Ireland.
- Low Corporation Tax Rate of 12.5%
- Favourable Treatment on Receipt of Dividend Income
- Relief for tax paid by Foreign Branches
- Tax Credits Available for Research and Development Activity
- Dividend Withholding Tax Exemption for payments to certain entities
- Extensive tax treaty network
- Capital Gains Tax Exemption on Sale of Subsidiary Shareholdings
- Limited Transfer Pricing Rules
Ireland is home to companies in the following industries:
- Eight of the world’s top ten ICT
- 50% of the world’s leading financial services organizations.
- 9 out of top 10 Global Pharmaceutical.
- 3 out of top 5 Games companies.
- 17 out of the top 25 Medical Devices companies.
- 10 of the Top Internet Companies
Below you find some more details on a few specific industries that are of interest for M&A into Ireland and where the local team of Corporate Finance in Europe has strong experience and can help well in doing acquisitions.
The Information Technology industry (ICT)
Ireland has good companies specifically in the ICT industry. We know various business owners in ICT interested in a business sale. This ranges from software to IT networking and infrastructure. Please visit M&A in ICT
if you want to know more about M&A in ICT in Europe.
Possible support of the Corporate Finance in Europe M&A team in Ireland
The local team of CFIE can help with your acquisition plans in Ireland. We provide the following ‘One-Stop-Shop’ integrated service (incorporating lead advisory, valuations, taxation, due diligence and consultancy expertise) for International purchasers of Irish companies. Here some detailed activities we can do for you:
1. Incorporation as a vehicle to acquire.
2. Local Tax Registration
3. Bank Account Opening
4. Identification and Targeting of possible acquisition targets
5. Negotiation with targets to ensure alignment with your strategic goals.
6. Due Diligence
7. Legal Representation and closing the M&A transaction
8. Post-Acquisition integration
Feel free to get in touch with John Corcoran
to see how John can help with your investment (M&A) plans in Ireland.