Interesting LBO Question for Write up Intangible/ DTL
Hello Monkeys!!
When calculating the Excess Purchase price as basis for calculating the write up of intangibles in an LBO
- My calculation: Purchase equity - equity on BS + existing GW on BS = excess purchase price. Then, i calculate 15% times this result (write up of intangibles) ; and tax rate times the result (DTL) . I then substract the write up and add the Dtl to the excess purchase price to arrive at the new GW. is this correct?
I have seen people basing the Write up of intangibles ONLY on purchase equity - equity on BS, resulting in smaller Write up. What is the correct way??
How much % of this excess can be allocated to intangibles? ive seen 15-30% (Europe)
is something allocated to PPE as well?
push
In autem quas iste enim distinctio. Molestiae praesentium deserunt repellat et voluptatum sint maiores. Officiis natus blanditiis et eveniet sit velit.
Debitis est molestiae quidem aut debitis quia itaque. Omnis magni sit dignissimos. Ipsa qui veniam dicta eius.
Consequuntur minus excepturi voluptate eum tempora minus velit. At voluptas accusamus fugit iusto et repellendus dicta. Impedit sunt quibusdam et ipsa porro. Delectus rerum adipisci temporibus.
Ducimus sed eum sapiente eum ut sed et. Deleniti in dolore cumque tempore. Excepturi a ipsa sit deserunt commodi quae dolorem maiores.
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...