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.


    Jeremy Swan, Managing Principal, Financial Sponsors & Financial Services Industry


    Matthew B. Teadore, CPA, JD, LLM, Managing Director, Transactional Advisory Services


    Subject matter expertise

    • jeremy swan
      Contact Jeremy Jeremy+Swan Jeremy.Swan@CohnReznick.com
      Jeremy Swan

      Managing Principal - Financial Sponsors & Financial Services Industry

      Contact Matthew Matthew+Teadore matthew.teadore@cohnreznick.com
      Matthew Teadore

      CPA, JD, LLM, Managing Director, Transactional Advisory Services Tax Practice Leader

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    Strategic Tax Issues for Capital Markets

    Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.