Insights on Opportunity Zone Acquisitions

July 07, 2024

by a searcher from Emory University - Goizueta Business School in Tucson, AZ, USA

My partner and I are evaluating two acquisition opportunities for well-established companies in Opportunity Zones, one of which includes property. We'd appreciate learning from the experiences of those who have navigated similar transactions.

Specifically, we'd love to hear:

- How did the Opportunity Zone designation impact your transaction?

- How did you leverage it to attract investors?

- What was successful and unsuccessful in incorporating it into your acquisition narrative?

I'll tag posters who have discussed Opportunity Zone acquisitions in recent years, and hopefully, we will get updates on their experiences.

And thanks to those who contribute to this community as it's been a great resource.

Reply by a searcher
from Harvard University in New York, NY, USA

I have gone the route of QOZB for my company (along with a C Corp for potential QSBS). In my opinion, for investors, it's a trade-off and not a clear win. You need to educate most folks on the tax advantages which really only happens if they hold for 10+ years, which may not be their desired hold period. And depending on the business, it *could* make operational and strategic decisions more restrictive depending on how easy it is for the business to remain compliant for 10+ years. As one example, it might make buying a second, third, etc add-ons harder if a good amount of the potential targets are either already in opp zones but assets are highly fixed or don't make sense to move to another location, or not in an opportunity zone and locations opp zones nearby their current locations are hard to find or not ideal for the end customers, logistics, security, etc.

Reply by a searcher
from Emory University in Tucson, AZ, USA

^redacted‌ ^redacted‌^redacted‌^redacted‌^redacted‌ > Tagging past posters re: opportunity zones in hopes they may contribute new insights

+7 more replies.

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