I'm in the process of acquiring a business in the state of Maryland. It's a stock purchase transaction because of gov't contracts that the company has that would be very difficult to transfer over via an asset purchase.
Does anyone in the community have experience with how to best structure the transaction of the entity?
Should I just transfer over the stock of the company to my investors and myself ( Easy path my attorney suggested)?
Or, should I create a new LLC entity that will hold the stock?
SBA requires the entity to be an operating company and not a holding company, so if I understand correctly the second option may not be viable.
My goal is to pursue the path that will be least disruptive to the operation of the company and the gov't contracts while providing enough flexibility in the future.
I'm at the closing stage and would really appreciate some advice from someone who has experience with this topic.
Please comment below or message me. Will make sure to return the goodwill.
How to structure Stock Purchase transaction of an S-Corp entity
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