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?
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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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