“B” Reorganization

Classification of Accepted Patterns of 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.

Proceed to “C” Reorganization

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, CPA

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.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

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…

Untitled_Artwork copy 4

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.

Posted in
Power in Kindness

Kindness Returns Good Fortune

Kindness returns good fortune, sometimes…  Fairy tales are enjoyable and entertaining, and they can also serve as life lessons, particularly about kindness. This one from Grimms’ Fairy Tales titled, The Three Little Men In The Woods, is just one example of how fairy tales help children, and even adults, learn from stories. One Kindness Story…

Alan Brown

Life’s Wisdom, with Alan Brown Movie Producer

Alan Brown, Life’s Wisdom, interview transcript, by Alan Olsen for The American Dreams Show: Alan Olsen: So, Alan, you’ve done quite a bit throughout your life. But I’d like you to take us through a timeline of some of the projects that you’ve worked on and, and what led you into that. Let’s start out…

Will Biden's Presidency Change Your Tax and Estate Plan

Will Biden’s Presidency Change Your Tax and Estate Plan

Will Biden’s Presidency Change Your Tax and Estate Plan One of the complexities of estate planning is that the rules of the game are always changing. Right now we’re in the middle of the presidential election between Trump and Biden, and whoever wins is definitely going to have an impact on your wallet for years…

Gemstones As Investments

Gemstone as Investments?

Gemstone as Investments? For the past several days, Marc Anthony has been given the highest level of stately treatment as he sits in the court of Cleopatra, the last queen of Egypt. Despite the grandeur of the banquets, Cleopatra has shown nothing but disdain. She is quick to disregard the roasting of the eight wild…