I am negotiating an LOI and one of the <20% owners may roll equity and stay under the 20% threshold to avoid a PG on the SBA 7a debt. To make the equity roll more tax efficient, the sellers proposed executing a 368(a)(1)(F) reorganization to an LLC pre-close. They are taxed as an S-corp today.
What, if any, impact may this reorg have on me as the buyer?
368(a)(1)(F) reorg impact?
by a searcher from The University of Chicago - Booth School of Business
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Thank you