While business owners typically seek to monetize their companies by an exit (M&A process) or succession, sometimes an interim step is required to split off some company assets. This can be done tax-free. The benefit is to allow for some or all owners to keep one part of the business while transferring another part to one of the other owners (a form of corporate divorce) or to an unrelated acquirer.

 

Reorganizations may be advisable in cases of corporate divorce or where the parties want to continue part of the business and to sell the rest. If you want a simple exit, this approach might not be for you. But if your business is complex, it may be a good plan.

 

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