PRINT THIS PAGE The dividend window: liquidity options for private equity investors25/06/2003. Source: Dechert. Robert Seber and Richard P Wild
On 28 May 2003, President George Bush signed the Jobs and Growth Tax Relief Reconciliation Act. The act will mean that dividends and long-term capital gains are generally taxed at the same reduced rate of 15 per cent. Robert Seber and Richard P Wild of Dechert discuss the implications of the act for family-owned businesses and the portfolio companies of private equity funds.
Many private equity firms have held portfolio companies for several years but do not find the current market conducive to exit. Typically, these companies have grown their cash flow or reduced their debt, or both, and can therefore be re-leveraged. The authors discuss some tax-planning aspects of the distribution under two equity structure scenarios.
Copyright © 2003 Dechert
Click here to view full report (pdf 367kb)
You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html
Dechert is an international law firm with over 700 attorneys. It provides practical business solutions to a diverse client base. For more information please visit www.dechert.com
|
