#1. I suspect that the actual goal is to sell Vitesse. If JEF sold it, that would result in double taxation (taxation at the JEF level; and then taxation to investors on any upstream proceeds). If they run the business for some amount of time and then sell the company (Vitesse), then JEF share…
#1. I suspect that the actual goal is to sell Vitesse. If JEF sold it, that would result in double taxation (taxation at the JEF level; and then taxation to investors on any upstream proceeds). If they run the business for some amount of time and then sell the company (Vitesse), then JEF shareholders end up with a single level of taxation. Or they do even better if it's a tax-free deal (but not my assumption).
#2. My recollection is that the JEF comp structure is sensitive to shareholder returns; and they include cash and non-cash distributions. So this is arguably better for Team Handler than distributing the after-tax cash proceeds to shareholders.
#3. Otherwise agreed; makes no sense to burden this division with the costs and inefficiencies of running as a public company.
Late comment so it may fall on deaf ears.
#1. I suspect that the actual goal is to sell Vitesse. If JEF sold it, that would result in double taxation (taxation at the JEF level; and then taxation to investors on any upstream proceeds). If they run the business for some amount of time and then sell the company (Vitesse), then JEF shareholders end up with a single level of taxation. Or they do even better if it's a tax-free deal (but not my assumption).
#2. My recollection is that the JEF comp structure is sensitive to shareholder returns; and they include cash and non-cash distributions. So this is arguably better for Team Handler than distributing the after-tax cash proceeds to shareholders.
#3. Otherwise agreed; makes no sense to burden this division with the costs and inefficiencies of running as a public company.