How often do step-up acquisition structures occur when the target is a freestanding C corporation?
Answer to relevant QuestionsWhat are the main tax considerations in the sale of a target’s stock to a purchaser? What are the nontax benefits, if any, of a stock acquisition? What are the nontax costs, if any, of a stock acquisition? Why does the taxable acquisition of an S corporation give rise to incremental tax benefits from stepping up the target’s assets while the acquisition of a freestanding C corporation does not? What are the tax benefits of using a Section 351 transfer of property to a controlled corporation? In what ways is it superior to a Section 368 reorganization? It was announced today that Florida, Inc., will acquire Menlo Park, Inc. Menlo Park has assets with a gross tax basis of $ 6 million and has $ 1.5 million of liabilities. Prior to being acquired, Menlo Park had no goodwill ...
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