QSBS Asset Acquisition with Newly Formed Corporation

The below graphic illustrates a PE fund acquiring the assets of an existing company.

The PE fund will then form a new corporation and contribute the assets at FMV to the corporation in return for newly issued shares of QSBS. Remember… this can only be done if the assets are under $50M and when contributing assets for QSBS the assets are valued at FMV. There are other strategies to take for example forming two corporations and contributing assets to both so they are both qualified.

This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.

About Brett Calhoun

Brett Calhoun is a licensed CPA/ABV and holds an MBA from the University of Missouri. Mr. Calhoun has experience as an operator with startups, venture capital experience, and experience advising growth to mature companies’ management on financial reporting, tax, and valuation issues.