M&A Tax Concepts: What is a “Gross-up Payment,” and Why Does It Matter?

Buying or selling a business is an exciting experience, and potentially lucrative opportunity for all parties. Most often, during the letter of intent / early negotiations phase, a “deal” is struck based primarily on economic and business terms. However, a proposed transaction’s tax consequences can vary significantly based on how the deal is structured and transaction effectuated. The parties should be familiar with these considerations, and, in order to navigate properly, well-advised by...
By: Farrell Fritz, P.C.

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