Pre-IPO · US Tax

F-Reorganisation

A US Internal Revenue Code Section 368(a)(1)(F) tax-free reorganisation — typically used to insert a Cayman holding company above a US C-Corp ahead of a US IPO.

In practice

Common in pre-IPO restructuring of non-US tech companies: an existing operating structure is reorganised so a Cayman parent holds a US Delaware C-Corp subsidiary, all done without triggering US capital gains tax. Requires careful US-side tax counsel.

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