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- Title
Acquiring the Equity of an Entity Taxed as an S Corporation? Consider an "F Reorg".
- Authors
Totino, Salvatore J.
- Abstract
Although would-be buyers in middle market M&A transactions continue to face challenges in what generally remains a seller's market, there are sometimes opportunities to take advantage of an often-overlooked planning method that can offer tax and non-tax benefits for both buyers and sellers. A significant number of target companies in the middle market are organized as S corporations, and a buyer's strategic use of an "F reorganization" in an M&A transaction involving an S corporation can generate substantial tax benefits for the buyer and, in some cases, more flexibility for the seller. Despite a decidedly non-glamorous name, the "F reorganization" can be a powerful tool in a buyer's M&A toolkit that should not be ignored.
- Subjects
SUBCHAPTER S corporations; TAX incidence; CORPORATE taxes; TAX benefits; MERGERS &; acquisitions; TAX planning
- Publication
Journal of Taxation of Investments, 2023, Vol 40, Issue 2, p57
- ISSN
0747-9115
- Publication type
Article