Hi there everyone!
I'm looking at acquiring a business that would effectively double my current operation.
I would like to refinance my current SBA loan (variable rate, so interest rates aren't a big deal) and otherwise streamline our legal entities by creating a new company into which I put my current assets along with those that come with the purchase.
A wrinkle though, is that one of the two sellers would like to roll a large portion of equity into the new company (it would be about 10-13% of the combined company) and stay on as the General Manager of the newly-acquired location. A banker has advised me that this is only possible if it is a stock purchase.
From what I understand, this has significant tax ramifications because the goodwill in a stock sale is not depreciable.
Are there any structures that can help me end up where I'm aiming to be without losing this valuable depreciation? Are there other things to be considering?
Thanks in advance!