Strategic Maneuver1 book · 3 highlights

Leveraged Buyouts Solve the Owner's Estate Trap

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Evidence

  1. “In addition to buying divisions of large companies, it is often possible to set up highly leveraged companies to buy out owners of small businesses such as we did with Old Fox and Main Line. ADVICE: Many business owners do not realize that it is possible for them to solve their own estate tax problems by this means. If they are willing to let”

  2. “someone like Narragansett set up a new corporation to buy all of their assets and liabilities for tax basis net worth, they can reinvest in the same enterprise as minority stockholders, and manage it for the new owners. They can have "a piece of the action" with a relatively small investment in a highly leveraged* company, and yet get complete liquidity in their original business.”

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