However, this mechanism is not available for closely held companies
that issue ESOs.
For example, they should neither discriminate against, nor unduly favour, investment in closely held companies
compared to investment in other firms.
Many nonpublic and closely held companies
issue debt with an equity kicker, such as a warrant.
The company includes a consulting division that provides business valuations, expertise with mergers and acquisitions, estate planning and estate succession issues for closely held companies
Through careful planning, high gift and estate taxes can be minimized for the owners of closely held companies
There are several ways minority investors in closely held companies
can ensure that they are able to participate in overseeing the material operations of the business and have a voice in making other significant business decisions.
Awarding ownership to employees can be a bit more complicated for small, closely held companies
. The primary difficulty, says Andrewsen, is accurately assessing the value of company shares in the absence of a fair market value.
In closely held companies
, employees who receive stock must be given an option allowing them to sell the stock back to the company for fair market value during the 60-day period following the distribution and again during the 60-day period following the first anniversary of the distribution date.
Also, over time, closely held companies
eventually sell, merge or go public, and the Simplot company was experiencing increased competition.
Another difference lies in the options for financing and structuring acquisitions for closely held companies
. Stock-for-stock swaps are rare, and access to initial public offering funds or other large pools of money is limited.
Headquartered in Oakbrook Terrace, Illinois with offices in Atlanta, Boston, Chicago, Cedar Rapids and Louisville, the company is a leading advisor to closely held companies
Thursday, January 3, 2013, “New Medicare Tax Impact on Business Planning for Closely Held Companies
- A National Perspective”