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Tax-Deferred Acquisitive Reorganizations...

Frank, Mary Margar...

Technical Note

Tax-Deferred Acquisitive Reorganizations for C Corporations

Frank, Mary Margaret; Hoffarth, Alexander

F-1863 | Published June 20, 2019 | 15 pages Technical Note

Collection: Darden School of Business

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This technical note outlines the general judicial requirements an acquisition must meet to qualify as a tax-deferred reorganization. The variation in the specific requirements that must be met to qualify for different types of tax-deferred (“A,” Forward Triangular “A,” Reverse Triangular “A,” “B,” and “C”) reorganizations are addressed. Finally, the specific tax consequences to the target’s shareholders and acquirer are outlined, and a numerical example illustrates the calculation of the after-tax proceeds to the target’s shareholders and the after-tax cost to the acquirer.