BUYING OR SELLING A BUSINESS

Companies grow in two ways – either through organic growth or through the acquisition of another business. Buying or selling a business is a complex transaction that has several tax and non-tax considerations. There are four basic deal structures that have different tax consequences to the buyer and seller:

• A taxable stock purchase/sale
• A taxable asset purchase/sale
• A tax-free exchange stock acquisition
• A tax-free exchange asset acquisition

Each available structure has to be evaluated so that recommendations and strategies are developed to address your particular needs and goals. Moreover, the political climate is in a fluid state and you need a professional that can guide you through the maze of ever-changing tax laws that may impact the ultimate tax consequences and the after-tax proceeds or costs once the transaction is complete.

As part of this evaluation process, we are available to assist in performing a buyer’s due diligence investigation by working with other professionals to assess the value of the business, structure the deal and participate in the negotiation and closing of the transaction.