Is Gordon Bizar still around?
Have you heard of a technique where one purchases a corporation by having that corporation issue redeemable preferred shares to the “vendors” in exchange for their selling their shares to the “purchaser” for $1 and then having the corporation redeem the preferred shares using working capital or funds loaned in by the purchaser? Seems to me that the proceeds received by the vendor would be taxable and thereby deprive him of the $500,000 exemption on sale of control of a CCPC and that during the transaction the “vendor” would have NO security as against the “purchaser” bleeding the corp. dry and moving on.
How to buy a business with no money and no down payment either!
A friend of mine has been approached with this scheme (or scam) to buy his successful plumbing contracting corp.
Seems a tad risky for the vendor to me.
Cheers,
XXX
No tyranny is so irksome as petty tyranny: the officious demands of policemen, government clerks, and electromechanical gadgets.
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david ingram replies:
(For those who do not know Gordon Bizar has a nothing down "buy a business" seminar which is intriguing and which I taught at one time back in the 80's. Great for the buyer, usually bad for the seller.)(The sender of this email actually taught it as well.)
Gordon Bizar is alive and kicking at http://www.bizarfinancing.com/?nav=home
Seller should NOT sell under terms you suggest but you knew that.
david
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