4 ms·
This looks like a strange and risky deal. I've heard someone in Germany making a similar deal. He sold his company mostly in shares of the buyer's company. The
by chmike 15y ago
This looks like a strange and risky deal.
I've heard someone in Germany making a similar deal. He sold his company mostly in shares of the buyer's company. Then came the 2000 bubble and the shares had not worth anymore.
The next year the IRS showed up knocking at his door. He owned them the IRS percentage of the selling price of the previous year (year of selling) and not of the current year. Today he is still working as an employee trying to pay back his debts.
- vidarh 15y agoIf a deal like that is structured even remotely sensibly then it will be a "merger" where the part that's in shares does not qualify as a purchase and does not trigger any taxes until the new shares are sold. If anything, a story like that, if true, is a demonstration of why you get lawyers involved, nothing more. Part shares, part cash deals are extremely common.