In a show of how strong the market is right now, we assisted another mid-market Arizona based corporation with the sale of their business. Again, the private equity group and their national law firm insisted on the transaction being structured as an “F-reorganization” for tax purposes in lieu of an asset sale as originally proposed. This is the second time we used this structure in as many months. For a description of this type of transaction see https://www.deangelislegal.com/business-services/mergers-acquisitions/. DeAngelis Legal assisted the long time client with all phases of the transaction, including (i) the letter of intent, (ii) formation of a new holding company, (iii) the F-reorganization restructuring to make the new entity the parent and the existing S-corporation a qualified S-corporation subsidiary, (iv) the purchase agreement and employment agreements, (v) the conversion of the subsidiary from a corporation to an LLC, and (vi) the closing of the sale. After the closing, the client had this to say about DeAngelis Legal “It was great having you on our team. Your experience really made a difference. Thanks for being there when we needed your help.”
