Write-ups in an LBO
Hi - I have a quick question about writing up assets in an LBO. I know in a M&A deal, there are three main tax structures: asset sale, stock sale, and a section 338(h) sale, which determine whether or not you can write-up assets for tax purposes.
For an LBO, do these structures still apply? Do you always get to write up a company's assets for tax purposes or does it depend on the transaction structure?
Thank you in advance!
No experience or knowledge and taking a shot in the dark, but isn't an LBO Merger or Acquisition in a way? You are using a lot of debt to fund the takeover and buy it with the assumption that you will be selling it later. So assuming that you buy over >50%, I think the same M&A rules would apply when determining whether you write-up the assets or not.
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