One advantage of receiving stock instead of cash in a buy-out is the deferment of the tax payment until the stock received is actually sold.

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Receiving stock in a buy-out defers the tax payment until the stock is sold, as the gain or loss is only recognized when the stock is disposed of. This is known as the "realization requirement" in taxation. In contrast, receiving cash results in immediate tax consequences.

One Advantage of Receiving Stock Instead of Cash in a Buy-Out