In corporate mergers and acquisitions, financial restructuring and valuation adjustments can be used to achieve interest transfer and tax avoidance, but these means need to be used prudently within the legal framework to avoid illegal behavior. The following are some common methods: 1. **Debt restructuring**: - By rearranging the debt structure, high-interest debt can be converted into low-interest debt, which can not only reduce interest expenses but also improve cash flow. - Use debt financing to achieve interest transfer between multinational companies and minimize tax burdens through differences in tax rates in different countries. 2. **Asset restructuring**: - Reclassify assets, such as converting fixed assets into current assets, thereby affecting the company's book value and tax payments. - Use asset depreciation and amortization to increase after-tax profits in the current period. 3. **Valuation adjustment**: - Adjust the valuation of company assets through internal transactions to affect the performance of financial statements after the merger and acquisition. For example, overestimating or underestimating the value of assets to affect the cash or stock ratio of the consideration paid during the merger and acquisition. - Adopt or exclude certain contingencies in the merger and acquisition agreement to adjust transaction costs and tax liabilities. 4. **Transfer pricing**: - Use transfer pricing strategies to adjust the prices of subsidiary services and products within the group to change the profit distribution between different countries. - By adjusting transfer pricing, profits in high-tax regions are reduced and profits are transferred to low-tax countries. 5. **Net working capital management**: - Through the management of accounts receivable, accounts payable and inventory, cash flow is optimized, thereby affecting the tax base to a certain extent. It should be noted that although these strategies can produce results in theory, they must comply with the requirements of tax laws and accounting standards. Tax authorities are often highly sensitive to such operations, and companies should operate under the premise of compliance to avoid legal risks and reputation risks. Companies usually consult financial advisors, legal advisors and tax advisors before mergers and acquisitions to ensure the rationality and legality of various restructuring and valuation adjustment strategies.