NonQualified Benefit Plan Examples

During the past fifty years, many companies have experienced dramatic growth in revenues and earnings through mergers and acquisitions. In addition to absolute growth, some companies have found acquisitions to be an attractive means of overcoming barriers to entering new geographic markets as well as expanding existing product lines or adding new product or service offerings as evidenced by the recent frequency of mergers and acquisitions. In structuring mergers and acquisitions, two goals are consistently at the top of every list: (i) to minimize or eliminate dilution of earnings and (ii) to structure transactions that effectively address income tax considerations for both the buyer and seller.

Inevitably, the sale of a company results in a gap between what the seller desires to receive and what the buyer is willing to pay. Acquisition Enhancement Strategy (AES) was developed specifically to satisfy the needs of both buyers and sellers of businesses, thereby reducing this gap. AES benefits acquirers by improving the economic structure of the transaction. Sellers benefit by minimizing the sale's income and estate tax consequences, thereby maximizing proceeds.

If you are considering or selling a closely-held company, a TCG consultant would be happy to talk with you and see if AES might be a viable solution for your transaction. Contact The Cochlan Group.