There are several non-taxable M&A reorganization types available to business professionals. Many business and tax professionals understand a Section 1031 non-taxable exchange where like-kind property is exchanged between taxpayers. Similarly, under Internal Revenue Code Section 368, certain business mergers and acquisitions can qualify for tax-exempt status. These transactions involve the exchange of stock or assets for equity interests. Under some types of reorganizations, cash is paid to the target corporation (seller) resulting in a partially-taxable transaction. There are several types of business reorganizations available under Section 368:
- Section 368(a)(1)(A): "A" Reorganization - Straight Merger
- Section 368(a)(2)(D): Forward Triangular Merger
- Section 368(a)(1)(C): Acquisition of Assets with Stock
- Section 368(a)(1)(B): Acquisition of Stock with Stock
- Section 368(a)(2)(E): Reverse Triangular Merger
Davis Law specializes in structuring non-taxable M&A reorganizations and ensuring these transactions are incorporated into long-term business succession plans. Call 404.901.2500 for a Free M&A Consultation.