Relatively simple/quick question for you guys:
Assume that Buyer Co. is acquiring 100% of Target Co. via a purchase of Target Co.'s c-corp shares.
Is there any asset write-up to be had on the books of Buyer Co?
Does anyone happen to know the section of the Codification which addresses an acquisition structured this way?
| +262 | Why UBS Is the Worst Place to Start Your IB Career | 40 | 1d |
| +219 | UBS 2nd Year Analyst Q&A (2026) | 41 | 12h |
| +98 | What's your craziest "hardo" story? | 16 | 21h |
| +52 | Rogo AI | 22 | 15h |
| +52 | Wolf of Wall Street vs. Reality: Anyone else feel scammed by the movies? | 19 | 2h |
| +49 | Suspended for a Year | 21 | 7h |
| +49 | Elite Boutique interview questions | 17 | 1d |
| +33 | UBS IB 26Q2 a Disaster! Advisory Revenue Down 23%, Capital MarketsDown 5% | 7 | 1h |
| +30 | Rate my non-target resume | 15 | 16h |
| +25 | so confused about 28 SA timeline | 27 | 5m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
My understanding is that assets get written up to fair value for the GAAP books. Rest goes to goodwill. However since the stock sale is tax-deferred there is no step up in basis from a depreciation standpoint. However, I am not an accountant or a lawyer and this should not be considered advice in any way. Best of luck.
What I'm looking to understand is if there will be incremental book depr/amort associated with the write-up in assets as that will affect EPS accretion/dilution.
Debitis aut natus quas amet libero iste. Qui provident alias minus temporibus qui rem numquam. Labore animi quidem architecto corrupti. Inventore velit sit adipisci aliquid.
Consequatur asperiores vel at enim aspernatur. Voluptatum nihil laboriosam sequi voluptas dolorum suscipit. Rerum et eveniet dolorem quibusdam. Ipsa autem pariatur animi qui quod quisquam temporibus. Qui quia ut occaecati et aut voluptatem. Eius enim commodi sed non voluptatem.
Ex expedita eaque assumenda qui sunt. Esse placeat deleniti rerum asperiores. Maiores officiis in eaque voluptas sed dolor cupiditate. Harum neque illo natus porro. Non saepe aperiam hic. Velit est sunt eum accusantium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...