Deal structured as a stock sale- Any asset write-up on the books of the acquirer?
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?
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.
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