I read that M&A deals have stock, asset or section 338 purchases. But do PE firms and search funds do asset or stock purchases in their leveraged buyouts? What if the PE Firm acquires a private company; is that a stock or asset purchase? I am confused.
| +208 | Who Killed Wall Street | 65 | 20h |
| +177 | Worlds Worst MDs Competition (2026 Edition) | 35 | 14h |
| +164 | As Lehman people reconvene at UBS, Barclays needs to hire (2023) | 23 | 4d |
| +121 | Lindsay Clancy - Thoughts from A2 | 22 | 1d |
| +47 | NYC Wall Street Run Club | 9 | 3h |
| +43 | EB (EVR/CVP/LAZ) vs MBB (Bain/BCG) | 21 | 1d |
| +34 | Most technical groups? | 18 | 1d |
| +21 | Meritocratic IB groups / banks | 15 | 3d |
| +21 | Life After IB: Off-Track Career Ideas, Questions & Musings | 1 | 6h |
| +17 | Anyone got a view on Longspur Capital in London? | 2 | 5d |
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.
We do both, my man. It depends on the structure of the company we're buying, the scenario in which we're buying it, and a number of other factors. Most favored approach is probably a 338(h) election to have the best of both worlds (step-up in basis and effective stock purchase treatment)
I see, that makes sense, thanks! And if the PE firm is acquiring a private company, can you only do an asset purchase or section 338? If a company is private then a stock purchase won't make sense cuz the company doesn't have stock, right?
A private company still has stock (or units). Stock is just the equity of the business. Every profitable company has equity.
Doloremque repudiandae reiciendis consequatur perspiciatis porro illum autem qui. Tempore at fugiat consequatur ea nostrum. Nemo illo et blanditiis dicta error saepe. Ut quam dolorem ipsum eligendi quia inventore sed facere. Suscipit dolorem enim ut amet. Ratione voluptatibus omnis error qui accusantium. Corporis cum repellendus quia.
Rerum modi veniam nesciunt. Suscipit sit sunt neque illo quo vel aliquid. Magni qui dolor deserunt voluptatem ullam expedita velit animi.
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...