medium · Investment Banking ma-lbo
In a Stock Purchase (M&A), what happens to the Target's existing assets on the Buyer's tax books?
- The assets are immediately marked to fair market value for tax purposes.
- The assets retain their existing tax basis (no step-up).
- The assets are removed from the balance sheet and replaced by Goodwill.
- The assets are depreciated over a new 15 year period.
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