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Abstract
In recent years, interest has grown in structuring private equity acquisitions to take advantage of the tax incentives associated with investments in qualified small business stock (QSBS). Although QSBS can often provide a meaningful tax benefit for private equity investors, deciding whether—and how—to structure a control investment for QSBS can be highly complex. This article considers the benefits of QSBS relative to investments in certain flow-through entities and explores several legal ambiguities and anomalies that lead to both planning opportunities and traps for the unwary in structuring platform investments and add-on acquisitions in a manner that optimizes QSBS.
TOPICS: Private equity, legal/regulatory/public policy
Key Findings
• A description of the pre- and posttax IRR implications of an investment in QSBS.
• A discussion of the impact of management rollover on QSBS.
• Implications of various structures on the ability to maximize QSBS gain exclusion.
- © 2019 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600