Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
How the Reverse Morris Trust Works in Tax-Free Spinoffs
Lucas and Luna break down the Reverse Morris Trust, a legal structure that lets companies spin off a division and merge it with another firm while deferring capital gains taxes. They walk through a concrete example: when a mid-cap industrial company wanted to offload its packaging unit in early 2026, it used an RMT to save an estimated $140 million in tax. Lucas explains the 50 percent ownership rule, the IRS continuity requirement, and why this structure is having a resurgence as companies simplify their portfolios ahead of a potential corporate tax rate change. Luna presses on the risks —…
The skinny
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