Is there an Exit at the End of Your Rainbow? 03/17/2016Posted by Morse Barnes-Brown Pendleton in Corporate, M&A, Taxation.
Tags: acquisition, exit, m&a, merger, S corp, St. Patrick's Day, startup, tax, value
There was green alligators and long-neck geese.
There was humpy bumpy camels and chimpanzees.
There was catsandratsandelephants, but sure as you’re born
the lovliest of all was the Unicorn.
– from “The Unicorn” by Shel Silverstein
Today I am reminded of “The Unicorn,” by Shel Silverstein and popularized in song in the ’60s by The Irish Rovers.
While not every start-up will be a unicorn, every start-up can hope for a favorable exit.
From a tax perspective, however, we have seen the excitement surrounding an exit be dampened by improper tax elections (e.g., S corporation elections, 83(b) elections), faulty granting of equity compensation, non-compliant deferred compensation plans, and incorrect state, sales and/or employment tax filings, to name just a few.
My message for you this St. Patrick’s Day: Avoiding tax issues in M&A does not require the luck o’ the Irish, just competent tax advice.
Is it time to start thinking about securing your pot of gold? Contact Diana Española.