“B” Reorganization
“B” Reorganization
Type “B” involves the acquisition of stock of one corporation by another, and the target corporation becomes a subsidiary of the acquiring, as a result.
Requirements of “B” Reorganization
1) The acquisition must be one of a series of acquisitions that are part of an overall plan to acquire the requisite control.
2) The plan of acquisition must be carried out in a relatively short period of time such as 12 months.
3) The acquisition must be made solely for voting stock.
Explanation:
* Targets shareholders exchange Target stock solely for Acquiring ‘s voting stock.
*T1 and T2 exchange the C stock received for the T1 and T2 stock held by their shareholders, and then TI and T2 dissolve.
* Acquiring must be in control of Target immediately after the exchange.
*Target becomes Acquiring ‘s subsidiary.
*Targets former shareholders become Acquiring shareholders.
We hope you found this article about “”B” Reorganization” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Identifying Disruptive Opportunities | Aaron DeBevoise
About Aaron DeBevoise Aaron is a serial entrepreneur. During his career he cofounded Machinima, a production company focused on action sports documentaries, StyleHaul Inc, a vertical network focused on Fashion and Beauty as well as other projects. Prior to starting his own venture. Currently he serves as the Founder and CEO of Network of…
The Midas Touch | Dixon Doll
About Dixon Doll For more than 35 years, Dixon has influenced and guided entrepreneurs, investors and executives in the computer, communications, and internet industries. Dixon was named to the Forbes Midas List for four consecutive years and received the 2013 Special Achievement Award in VC from the International Business Forum. He was elected to…
Telemedicine | Clay Whitehead
About Clay Whitehead Michael is co-founder and CEO of Drchrono. He has worked as a software engineer since 2000. He had implemented components of the Bloomberg Terminal, used by customers worldwide. Michael has a B.E. in Computer Engineering & Computer Science from Stony Brook University. Michael attended Columbia University in Information Systems. Clay is the…
Disruptive HR Models | Keith Kitani
About Keith Kitani Keith Kitani is the founder and CEO of GuideSpark. He’s a successful entrepreneur and software executive with over 20 years of experience building technology companies. He has been building Software-as-a-Service (SaaS) products and businesses since 1999 when he co-founded Presedia (a rapid eLearning company) and sold it to Macromedia in 2003. At…