Our goals are to establish for the seller a definitive date and value for the asset divestiture and to provide a bulletproof process and documentation to withstand a tax audit. We take steps to reduce risk that the IRS will object to the form of the divestiture. Here is how we are different:
- We establish negotiated pricing for each individual transaction. According to our legal and accounting advisors, buying stock from everyone at the same $1.00 price does not really establish an arm’s-length, negotiated sale. It has the characteristics of a service, not a sale for fair negotiated market price.
- We purchase other types of assets, such as notes, LLC memberships, distressed real estate, including international assets.
- We correspond with the Issuer company to handle restrictive rights contained in most private stock purchase agreements, such as right-of-first-refusal, co-sale rights, and other transfer limitations. Our Asset Transfer Agreement gets the seller out of the transaction and gives us (as the buyer) the limited power of attorney to deal with the restrictive rights constraining the seller. We take responsibility for following up on all these, to ensure the transaction is completed.
- We support customers in case of an IRS audit.
- To make the selling process easy and fast for the seller, we handle most of the transaction electronically (via email and DocuSign). We also send FedEx labels, so sellers who have possession of their stock certificates can send them to us easily.