Seller taxes on PE acquisitions
This might be a super basic question but how do taxes work for sellers to PE? I read this article on the Jersey Mike sale to Blackstone and it says the owner will be worth $7.5bn after selling a majority stake for $8bn. Assuming the transaction was done in cash, wouldn't the owner have to pay a 20% capital gains tax + relevant state taxes? Then shouldn't his net worth be much less than what the company was sold for?
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