Avoiding LBO Tax Missteps

Topics:
Taxes
Tags:
CFO Publishing Corp.,
Finance,
Financial Accounting,
Financial Services,
Investment,
LBO,
Mergers & Acquisitions,
Shareholder
Source:
CFO Publishing

Overview: Make sure LBO Sec. 338 elections don't trigger step transaction rules. In on instance article explains that in many LBOs, the sponsor insists that certain target shareholders—for instance, management—become shareholders of Newco. These shareholders, the "rollover" shareholders, are constrained to re-invest a portion of the proceeds (from the sale of their target stock) into a specified amount of Newco stock. For more elaboration about the issue, refer to the article.

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Format: HTML | Date: Jun 2002 | Pages: 2

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