Exit Dreams and Tax Nightmares: The Lurking Threats behind your S Corporation
A few years ago, we advised a group of professional services sellers in connection with a dream of an acquisition event: $100 million+ exit as a platform company to a well-known private equity group within the professional services space. The deal promised not only a healthy cash payment of $50-60mm at closing, but potentially, future riches from the sale of the owners’ rollover equity once the business achieved another exit at an even higher valuation.
