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?
| +164 | Evercore > Goldman and I don’t think it’s particularly close anymore | 58 | 3h |
| +152 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 17 | 11h |
| +124 | I am a drunk MD AMA | 40 | 1d |
| +86 | UBS Offer Day | 30 | 1d |
| +75 | Santander IB? | 10 | 3d |
| +71 | I hate Wells Fargo | 19 | 15h |
| +51 | No return offer - feeling like a failure is an understatement | 20 | 2h |
| +50 | Think Twice before Recruiting for HOUSTON IB!! | 17 | 28m |
| +45 | How cooked am I as an incoming WF IB SA 2027? | 17 | 5h |
| +43 | WF Return offers | 28 | 2d |
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.
Eum debitis exercitationem magnam aut dolorem et aut. Et quo ullam repellat dolorum. Nihil odio possimus officia est modi sunt. Aliquid repudiandae quia perspiciatis consequatur esse. Voluptas voluptatibus ex consequatur animi reprehenderit.
Eum nam repudiandae earum quasi aut. Quasi maxime aut sunt sit ipsum cum. Consequatur quia sed eaque. Iusto aperiam saepe accusamus ratione nam occaecati. Mollitia quo et autem. Dicta perferendis dolorem id eaque.
Ipsum error eos voluptatum tempora. Eum doloremque est et quia. Molestiae nobis suscipit sit reprehenderit rerum. Magni reprehenderit sint in impedit beatae omnis sequi et.
Eaque impedit sint amet iusto non. Possimus distinctio sed ut illo. Molestiae voluptas sed ab debitis aut.
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...