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12/12/2019
Avoid missteps during purchase price allocation
In a taxable asset transaction, once the diligence process is over and purchase price adjustments have been negotiated, the total purchase price must still be allocated to all of the tangible and intangible assets acquired, some of which may not have been previously recorded on the target’s books or have tax basis. This process may lead to tension if buyers’ and sellers’ priorities conflict regarding the value ascribed to certain assets, as these allocations can impact each party’s perceived success of the transaction.
In a newly published article for Bloomberg Tax, CohnReznick’s Jeremy Swan and Matthew B. Teadore discuss purchase price allocation considerations for buyers and sellers, as well as how the 2017 Tax Cuts and Jobs Act (TCJA) added another layer of complexity to the process.
Read their article at BloombergTax.com, or download the PDF below.
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Jeremy Swan, Managing Principal, Financial Sponsors & Financial Services Industry
646.625.5716
Matthew B. Teadore, CPA, JD, LLM, Managing Director, Transactional Advisory Services
646.625.5742
Subject matter expertise
Jeremy Swan
Managing Principal - Financial Sponsors & Financial Services Industry
Matthew Teadore
CPA, JD, LLM, Managing Director, Transactional Advisory Services Tax Practice Leader
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