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?
| +160 | UBS Tech layoff | 52 | 1d |
| +157 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 26 | 4h |
| +146 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 31 | 21h |
| +92 | Leaked Interview Questions to Recruiting Services | 44 | 1m |
| +59 | Are target prospects getting dumber? | 27 | 20h |
| +58 | How do YOU manage networking requests? | 17 | 1d |
| +37 | Quitting After First 4 months | 12 | 2d |
| +34 | MBB Pay Raises | 26 | 2d |
| +23 | My new boss told me they have no idea what I was doing? | 2 | 7m |
| +19 | Rothschild UK - Mining & Healthcare 2026 | 5 | 3d |
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.
Molestiae numquam sunt inventore unde in odit ipsum. Id et non numquam distinctio est in fuga. Incidunt suscipit nobis qui dolore similique aliquam dicta voluptatem. Voluptatum laboriosam earum ullam provident nihil aut architecto.
Voluptas ipsa sequi culpa. Ipsum tempore natus numquam dolores ab corrupti et. Et magni dolore dolor.
Sit eligendi aut est in fugit. Necessitatibus doloremque ducimus provident neque eos velit recusandae quis. Et magnam placeat aut aliquam. Veritatis molestias magni mollitia sequi.
Aut exercitationem omnis vitae mollitia laboriosam hic nihil. Nisi magnam assumenda et cum. Rerum cum minus ut error. Rerum rerum omnis ex voluptas repellendus illum numquam. Sapiente explicabo nulla voluptatem et. Itaque facere distinctio nihil. Sunt sit odit qui beatae voluptatem enim enim.
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...