There are lots of ways to structure such a transaction, depending on the
wants and needs and negotiating prowess of the parties.
I think we can safely assume that either or both Tentec owners, now
retired, "sold out." Whether they received cash for their shares, we are
not likely to know.
One way to do this, not necessarily THE Way, is to form a new entity which
owns all the shares of both companies, maybe for ease of financing,
liability avoidance, tax or other considerations. Maybe RF Concepts
already was the shareholder of Alpha and now is the shareholder of both.
Another way might be to sell the assets of each company, not the shares, to
the new entity, which would be an income tax driven arrangement probably.
I did one of those years ago and sat back thinking what a clever fellow I
was, until I got the sales tax notice from the State of California where
all the assets were located. The term "margin for error" took on a whole
new meaning! Anyway, the structure of the transaction could take many
forms, some not so obvious.
The key thing for us to think about is whether the new owner has the
capital and resources to continue to develop and market products that will
sell for enough to make a profit and stay in business. Hopefully that was
carefully considered and calculated, with a margin for error.
73 de W6OGC Jim Allen
On Mon, May 12, 2014 at 4:52 PM, Lee <ny6p01@gmail.com> wrote:
> One of my concerns is whether the primary shareholders of either co.
> cashed out. The statement says that the new entity will be called RF
> Concepts. I don't know of this has a bearing on whether the Ten Tec brand
> will continue, or even if those with the most to gain/lose have given up
> their interest in Ten Tec.
>
>
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