Leon Harris

How do entrepreneurs succeed in business? Usually, it has little to do with luck, far more to do with preparation. Here’s our take: Start-up with an irresistible idea: Sometimes the idea involves a new invention. More often the idea involves spotting a niche to profitably exploit. The Oxford Dictionary defines a niche as specialized segment […]

How can a large multinational group or a smaller firm close a technological gap in its current or planned product line?  Here’s our take: Our comments below are general. We are not technical experts. That said, there are two possible routes. One possibility is to conduct urgent R&D. This takes the time it takes. Another […]

When considering the expansion, acquisition or sale of a business, there are many questions to check out. Strangely enough, large groups are sometimes prepared to lay out large sums to acquire a start-up company with technology that doesn’t yet work i.e. no proof of concept (POC). We experienced one deal where a well-known telecom group […]

M&A business valuation rules – there are many techniques. But which is the typical joker in the pack? To find out click here: https://mergeacq.ai/ma-notes-valuation-rules-and-the-joker-in-the-pack/

Ariel Marom and Leon Harris Artificial intelligence (AI) is here – not tomorrow but today. AI helps us ascertain, write, think, analyze, market, learn and even consult. But like any good friend, there are limits.  Here are our 10 commandments concerning AI principles which people, businesses and organizations should be aware of.  First, although AI […]

Here’s our take: In our experience, many M&A deals rise or fall on intellectual property (IP) matters. IP includes technology. But IP also includes brand names and customer goodwill in low tech and high tech. Typical problems: It is possible the technology doesn’t yet work. It is also possible there is insufficient legal protection against […]

When people work from home or a vacation home, the tax result is often a mess. And a recent OECD solution leaves doubts. People in many sectors can work online wherever they want – at the office, at home or in a vacation home in another country by the beach or in the hills. All […]

There are many ways a business may obtain a strategic advantage without entering into a full M&A deal. Below we review a few of the most common arrangements: Joint Ventures, licensing, exclusivity and subcontracting. Joint Ventures: Partnering for Specific Projects A joint venture (JV) is a contractual relationship between two or more parties to carry […]

E-Commerce Tax Challenges Ahead E-commerce means using the internet to sell easily to customers around the world from your chair. The world is our oyster. However, governments know this. Over the next year or so, governments hope to dig up treasure for their tax coffers—not buried underground but hidden in the internet cloud. The USA, […]

To sell more, you probably need to buy more. Assuming you are not out to buy a whole business, can you improve your competitive advantage by buying good inputs – products, services or intellectual property – from a foreign source? Here are a few general buying tips to include in your business plan and check […]

Publications on management strategy can run to hundreds of pages, it’s true that starting and running a business is no easy matter. But an entrepreneur needs to know what the optimum strategy is. Below is our quick guide for making things happen in your business. The Entrepreneurial Mindset Your Irresistible Offer Once you have spotted […]

There are two main ways to expand a company – buy into another company or build up your own operation. Buying is generally quicker but can be risky. Building it yourself is generally cheaper. So what are some of the key factors to consider when you’re at this crossroads? Let’s break it down. Why Buy […]

There are two main ways to expand a company – buy into another company or expand your own operation. Buying is generally quicker but can be risky. Expansion is generally cheaper. How do you expand with less risks in an expedited way? In this article, we propose expanding internationally with a trusted team of advisors. […]

Angela Rayner resigned from the post of UK Deputy Prime Minister on Friday September 5, 2025 due to a tax problem! When she purchased a seaside home, it seems she paid a lower rate of UK Stamp Duty Land Tax applicable to principal private residences, overlooking a second home apparently held through a family trust. […]

Being accused of tax evasion is serious. What do you do if the Israeli Tax Authority (ITA) throws the book at you and accuses you of artificial tax evasion? One taxpayer threw the book right back and won in the Israeli District Court (Shalam Packaging(1998) Ltd vs Netanya Assessing Officer, Civil Appeal 38077-02-21 of April […]

The war has dampened M&A (exit) activity in Israel a bit, but deals are still being done. The recent Wiz acquisition by Google for $32 billion confirms that. We discuss a few points based on recent experience. Our remarks are potentially relevant to M&A deals of all sizes in high tech and low tech, in […]

The OECD has published a model tax treaty for countries to adopt so that international distributors may optimize and fix their tax bill year by year. The treaty applies to eligible importers that import physical goods from a related foreign supplier. Much international trade is done this way. The model treaty issued September 26, 2024 […]

What should we glean from Google’s M&A deal with Israeli cyber company Wiz which collapsed in 2024 at $23 billion but was clinched in 2025 at $32 billion? Why walk away from $23 billion? Which side walked away? We discuss below how M&A (mergers & acquisition) deals are done and undone. Preparing for the deal: […]

15. Where Do Professional Advisors Fit Into M&A Deals? We are accountants. In our opinion, accountants, lawyers and bankers are worth their weight in gold. It is not their deal, they advise not decide. But anyone in business needs a solid advisory team to consult and present the factors, so that the business and its […]

When planning an M&A deal, lessons from past M&A deals may help you prepare and execute the present M&A deal. There are many lessons, including potentially the following: Next Steps: © Leon Harris 19.5.25, all rights reserved.  Email: leon@hcat.co,  Cell: +972-54-6449398.

When planning an M&A deal, psychology matters.  Psychology is all about mind and behavior. M&A deals tend to be 10% economic, 10% tax, 10% legal, and 70% psychological. The “smell of the money” has an effect on people’s behavior in most deals. In many cases, the buyer is perceived as the “big fish” and the […]

When planning an M&A deal, post M&A integration matters especially to the buyer side. How will the acquired business be integrated into the buyer’s group and existing business operations? These are urgent considerations as trial and error is not an option. Typically the buyer will appoint team members to begin reviewing integration aspects before and […]

Entrepreneurs everywhere dream day and night about their multi-million dollar exit. Serial exiters know it isn’t so easy. Exit deals take on a life of their own, especially if you don’t plan ahead and build in some shock absorbers too. One of the reasons is that even if the deal does go ahead, the resulting […]

When planning an M&A deal, paying for the deal matters.  The sellers want their money sooner than later, but the buyer is usually buying a going concern with income, expenses, assets and liabilities. And should contingent consideration be used in case any surprises emerge? Therefore, finance is an all-important factor in M&A. Possible ways of […]

When planning an M&A deal, valuation aspects clearly matter. Just how much is the candidate (target) company worth? Reams have been written on the subject. The seller wants the highest price as soon as possible, the buyer wants a risk-free bargain or at least not to overpay. The problem is there is usually a host […]

When planning an M&A deal, legal aspects matter in each country concerned from start to finish. Make sure you have a good legal team on your side in each country available around the clock. And should contingent consideration be used in case any surprises emerge? Among the things they may have to consider are: Here’s […]

When planning an M&A deal, tax aspects matter.  Sellers usually prefer a share sale. That way shareholders may pay limited capital gains tax but this needs checking in each country concerned. Employees on a stock option plan also want to minimize their income tax/capital gains tax/social security liability. And they are afraid they may be […]

When planning an M&A deal, accounting aspects matter. Each side wants to make a profit, calling for a Win-Win situation. The selling side generally wants a short term capital gain. The purchasing side generally wants to make a longer term profit. The purchasing side doesn’t want to overpay based on overstated profits. And if the […]

When planning an M&A deal, managing the deal matters. Deals that run out of momentum often collapse. There are a number of stages in an M&A deal for all sides including the following: All this may entail many weeks of intensive activity. Practical aspects of managing the process of an M&A deal may include the […]

When planning an M&A deal, the motivation of each side matters.  The seller will need to have ready a reasonable answer to this question. Possible seller motivations include: The buyer may want access to a new market, product or technology. But not always. Other reasons for buying include: But the buyer must do due diligence […]

When planning an M&A deal, structuring the deal matters.  How are M&A deals typically structured? First, the parties need to decide what is actually being sold? A company or group of companies? Specific income-generating assets? A going concern i.e. a distinct business operation? Or a start-up with perhaps little more than a proof of concept? […]

When planning an M&A deal, advance preparation matters.   How should buyers prepare for an M&A deal? How should sellers prepare for an M&A deal – typically referred to as an exit for them? There are a number of stages for all sides including the following. Preliminary questions for each side before getting going typically […]

When planning an M&A deal, the ingredients of the deal matter. Business owners may want to retire or they may be hoping for a dream offer for their business – in hitech or low tech. Prospective business purchasers may want to expand their market share or they may fear falling behind their competitors. These are […]

Press Conference of US President Trump and Prime Minister Netanyahu revealed what a country has to do to dodge the US tariff bullet. The medicine might be bitter.  On April 7, 2025 US President Trump and Israeli Prime Minister Netanyahu announced at a press conference in the White House that Israel will produce a plan […]

The Israeli tax break rules are being tightened up for new Employee Share (=Stock) Ownership Plans (ESOPs) commencing January 1, 2025. This will be important for many Israeli hitech and other companies, and their employees.   (Regulations Number 11461 of Sep 17, 2024) Current ESOP Tax Breaks in Israel Section 102 of the Israeli Income Tax […]

Back on July 1, 2021, the OECD and G20 announced that 130 countries, led by the USA, had joined the Two Pillar tax reform package aimed to “ensure that multinational enterprises pay a fair share of tax wherever they operate”. That number now stands at 147 countries. The OECD hopes to re-allocate a quarter of […]

Comprehensive EU VAT rules apply to cross-border business-to-consumer (B2C) e-commerce supplies of goods and services, both within the EU and from outside it. If you sell anything to EU consumers via the internet, read on. The general principle is that all supplies to EU residents are now subject to EU VAT, with no de minimis […]

The EU issued tough rules in 2015 and 2021 for non-EU businesses that do e-commerce with consumers in the EU. The EU is an important marketplace with 27 member countries. These rules apply the destination principle – EU VAT is collectible at the VAT rate in the customer’s country. The EU rules distinguish between B2B […]

Lisa Minelli told that money makes the world go round, but she didn’t say how. . People go into business to make money. One method to help them do so is the accelerator (or incubator). What is an accelerator? An accelerator is a facility in which financial and business experts provide advice, administrative support and […]

Who sets the fiscal policy in most Western countries? If you said the Finance Ministry in each country, go to the back of the class. And if you said the Central Bank in each country, take some extra classes. In practice, there is a new sheriff in town, in over 140 countries…the OECD. It has […]

Multinational groups, large and small, are now overhauling their international tax planning from top to bottom, due to BEPS, hopefully without getting into the Panama Papers. What is BEPS? On October 5, 2015 the OECD published a comprehensive package of measures aimed at BEPS – Base Erosion Profit Shifting. Countries around the world are starting […]

When Paul Simon sang the hit Slip Slidin’ away, he had in mind a girl called Delores. When the OECD comments on intangible assets sliding away, they have in mind Dollars and Euros – in the OECD Transfer Pricing Guidelines, and Guidance for Tax Administrations of the Approach to Hard-to-Value Intangibles (HTVI). The guidance clarifies […]

We all know that the Boston tea partygoers believed they should not pay taxation without representation. But now that democracy has arrived in the USA and most other countries, what (if anything) motivates us to pay taxes? The OECD refers to this motivation to pay tax as “tax morale”. They presumably mean tax morality.  A […]

SUMMARY: In any M&A deal, don’t under-estimate the importance of the initial Letter of Intent (LOI).Consider, among other things, the following:(1) The price(2) The deal structure(3) The payment milestones (4) Etc. Read on. This is Article is part of a series. We are experienced M&A consultants. Can we help you? Need more info? Leon@hcat.cohttps://mergeacq.com/ ARTICLE: […]

If a company were to place a server on the Moon and use it to generate a commercial profit, would it be taxable? Are worldwide taxation systems in many countries space-wide too? The same question arises with regard to the territories not recognized as countries such as the high seas, the Arctic, Antarctic, Native “Indian” […]

On October 13, 2021 the G20 Finance Ministers endorsed the latest OECD Two Pillar tax package, saying it will “establish a more stable and fairer international tax system”.  But will it? The package now is supported by 147 countries representing over 90% of global GDP. Will your group’s taxes take off? Or will you outfox the OECD? […]

The world is experiencing turbulent times, but some have turned adversity to advantage. For example, some buy widgets from China and sell them to an affluent market such as North America. They use a platform like Amazon to sell and ship stored goods and a payment service like PayPal.  Others provide software as a service […]

It’s getting harder and harder to do business with the EU On July 1st, 2021, new EU VAT rules began to apply to e-commerce that target online platforms and B2C imports of all types and sizes.  Moreover, the EU is now implementing broad new rules for disclosing cross-border arrangements if certain tax-dodging “hallmarks” exist, due […]

Below are some case studies illustrating some of the e-commerce tax complexities of our time. Case study 1 The Great Widget Group, headquartered in the UK, has global revenues of EUR 100m and global profits of EUR80m. It uses a Cayman Islands offshore subsidiary company to buy cheap widgets from China and sell them onwards […]

We’re protected from digital taxes and other fallacies… The new e-commerce tax landscape is getting more cluttered all the time. It can affect most businesses that use the internet. Here is a discussion about a few tax fallacies. Not really. The VAT rules in the EU and other countries target B2C businesses of any size. […]

Tax is not only costly, it is complex. Here are the main areas of complexity a business should plan for internationally and in Israel. International taxation for businesses shows no sign of getting easier, only more complex. Why is that? An illuminating survey was recently published, the Global MC Tax Complexity Survey with discusses the […]

The Pandora Papers expose offshore secrets in a less-than-flattering way. It is best to arrange your all your affairs appropriately. Here’s how.  The International Consortium of Investigative Journalists (ICIJ) published on October 3, 2021 some spicey tales of offshore happenings by famous people in the Pandora Papers. This follows earlier scoops in the Panama Papers. […]

The EU Court of Justice issued a VAT judgment that not only takes a last blast at Britain, it also causes collateral tax damage to US and other non-EU online platforms if they supply services to EU or UK consumers. The case concerns Fenix International (CJEU C-695/20 of February 28, 2023). US and other e-commerce […]

On September 27, 2024, the credit rating agency Moody’s announced it has  downgraded Government of Israel’s long-term local and foreign-currency issuer ratings to Baa1 from A2. And the outlook remains negative (See https://www.jpost.com/breaking-news/article-822128). Given that Israel is at war, is this any surprise? Yes it is, because some of Israel’s borrowings are backed by the US […]

G20 Finance Ministers announced a plan in Rio De Janeiro on July 27, 2024 to help governments around the world improve the state of their finances. Some of it depends on taxing ultra wealthy individuals. It is not quite a Robin Hood plan, because Robin Hood robbed the rich to give to the poor, not […]

Cost plus may no longer be acceptable in Israel for marketing aimed at specific clients, perhaps other cases too.

The Israeli Tax Authority must refund tax wrongly collected on some Israeli homes sold 2007-2023. Time limits apply to claiming tax refunds….

Digital donations become mandatory in Israel from 2025. What does this mean?

Israel moved onto a mandatory system of e-invoicing, known as “Israeli Invoices”, on May 5, 2024.

The OECD has issued rules to help distributors fix a standard taxable profit margin in around 145 countries….

How do you buy or sell a company at a good price. What else matters?

Governments are starting to tax the cloud. What should e-commerce operators plan for?

From 2026 new Olim will need to report exempt income and prepare for questions.

Stay up to date. Learn from other M&A deal..

As more governments collect more taxes thanks to the OECD, will there be any tax justice? Or will each country apply its own rules?

The tax treatment of meals at work can be hard to digest….

The Israeli Supreme Court ruled a meat dealer was also in the real estate business…

What is a hitech SAFE? Why is it needed and what are the Israeli tax implications?

If you buy the shares of an Israeli company and then proceed to strip out the intellectual property, Israeli tax may be due on both the share deal and the IP stripped out…..

The pros and cons of asking the Israeli Tax Authority to talk to a foreign tax administration.

The Israeli VAT rate is set to rise 1% to 18% in 2025. Electric cars may be assessed to a per-kilometer tax starting 2026.

The Israeli Supreme Court recognized a deemed interest expense when no expense was claimed, presumably to make withholding tax payable on the deemed interest.

Summary – give appreciated assets to the right charity.