Preferred entity structure when acquiring a new business?

by a searcher from New York University - Leonard N. Stern School of Business

5 months ago

Hi Everyone,
I hope this message finds you well. I am seeking your insights on the preferred entity structure when acquiring a new business. Specifically, I am interested in understanding the best practices and preferences, particularly in the context of an asset-only deal.
Your expertise and experiences would be greatly appreciated.
Thank you in advance for your valuable input.

0 likes
160 views
13 comments

searcher from The University of Chicago - Booth School of Business

It depends one approach would be to see how much cash you expect the business to each year in a C corp, total net income of the business = taxable income to you. Vs how much in wages you would expect to pay yourself in an S Corp looking at the taxes paid in both scenarios. Again, I don’t know the structure of the co, this is only one approach.

3 months ago | like reply | 0 likes

searcher from Rochester Institute of Technology

Spend some time familiarizing yourself with the diff entity types and their features. It will always come in handy and better informs your conversations with lawyers and accountants.

3 months ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Family office looking for traditional searchers

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Downsides of "buying a job" below 750k+ EBITDA?

6-7x for a Self-funded Search Deal?

Examples of self-funded searcher websites

Self Funded Acquisition: A few Things I Learned

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.