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Tax/non-tax factors for preference of method in acquisition

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Identify any tax or non-tax factors that might cause a shareholder in a target corporation to prefer a taxable acquisition to a tax-deferred acquisition.

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The expert identifies any tax or non-tax factors that might cause a shareholder in a target corporation to prefer a taxable acquisition to a tax-deferred acquisition.

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For a reorganization type of taxable acquisition, the target corporation must distribute the stocks, securities and other properties it received in the reorganization to its shareholders. This is typically not desired. For taxable acquisitions the seller prefers stock ...

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