Posted on Oct 6, 2017 in
Taxation |
Comments Off on You Can’t Have Your Cake and Eat It Too: “Midco” Transaction Exposes Sellers to Transferee Liability
Consider the following situation: You’re a major stockholder in a corporation whose assets have appreciated in value, and you want to sell. You would really like to structure the deal as a sale of stock in order to avoid capital gains tax on the corporation’s appreciated assets. When you contact potential buyers, you find that they all want to structure the purchase as an asset sale...