Mergers & Acquisition

Merger Termination Fees

If your business has been through a merger, you may have experienced a termination fee.  Such fees, sometimes referred to as “break fees,” are usually charged by the target business as security that the buyer is serious and as compensation for lost time.   If you’re part of a failed merger and have to pay this…

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Tax pitfall in merger agreement

If you are both a shareholder and employee of your company, don’t assume that in a merger or acquisition all of your income will be considered capital gain taxed a preferential rates.  That’s exactly the mistake made by the taxpayer Brinkley made when his company Zave merged with Google in 2011.  The big mistake? Not fully appreciating…

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How to account for selling your service LLC

One of the ways you may ultimately exit your LLC is through an “Outside buyout.”  I use the term “outside,” from an accounting technician’s perspective. The legal form of the transaction, is that you sell your ownership in the LLC to another person.  That person could be one of the existing owners or not.  I…

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