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- Title
An Examination of the Use of a Type F Reorganization in Private Equity Transactions Involving S Corporations.
- Authors
Stanaland, Terence B.
- Abstract
Private equity firms are becoming significant players in the mergers and acquisitions marketplace. Increasingly, buyers are interested in obtaining less than 100 percent of the target corporation and are also keen on using rollover equity to defer tax to the seller and provide additional financing for the buyer. Finally, buyers also wish to obtain a stepup in the basis of the assets of the target. A Type F reorganization involving a state law conversion of an S corporation into a limited liability company (LLC) can provide harmony between buyers and sellers in these transactions. This article will examine the technique and will offer practical guidance to practitioners.
- Subjects
SUBCHAPTER S corporations; PRIVATE equity; PRIVATE companies; MERGERS &; acquisitions; DEFERRED tax; MERGER agreements; BANKRUPTCY reorganization; ROLLOVERS (Finance)
- Publication
Journal of Financial Service Professionals, 2023, Vol 77, Issue 2, p67
- ISSN
1537-1816
- Publication type
Article