CMM has closed another successful M&A deal involving a complex F-reorganization. The deal team completed the sale in record time for our client, a business specializing in accounting and business solutions for nonprofit organizations.

The terms of the deal included the sale of the majority of the client’s stock to a private equity firm. The firm, in business since 2013, focuses on investment in and active expansion of small capitalization and middle market companies in partnership with management. Our client will remain on board with the company as part of the rollup.

An F-reorganization is a type of qualifying tax-free reorganization for corporations that changes the identity or form of a corporation. Private equity firms often take advantage of the F-reorganization as a means of acquiring an S corporation without engaging in a lengthy consents process while simultaneously gaining the tax benefits of a deemed asset sale.

The client appreciated CMM’s efforts, sharing that “It was a true pleasure working and learning from CMM, and I look forward to the next chapter.” CMM’s Vincent Costa led the deal with support from Zachary Mike and Marc Saracino.

This transaction showcased CMM’s depth of knowledge in the M&A seller-side space. Learn more about how CMM helps our clients receive the most value for their business.