Michael Shea

Central Florida's #1 Business Broker

Selling A Business, Selling Your Company

What is Section 338(h)and how can it help sellers and buyers get a deal done?

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Section 338(h)(10) allows a purchasing corporation to elect to treat the acquisition of another corporation as a deemed asset purchase for tax purposes, even though it may legally be structured as a stock purchase. This means that the purchasing corporation can treat the transaction as if it had acquired the assets of the target corporation, resulting in potential tax benefits such as stepped-up basis in the assets and the ability to deduct any resulting goodwill or intangible asset amortization.

A Decent Explanation of Working Capital in Transactions

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Working Capital is a key component of every M&A transaction so it is important to understand what role it will play in the sale of your company. First, let’s start with how transactions are typically structured: Transaction Structure Most acquisitions of mid-sized companies are structured on a Cash Free / Debt Free basis with a […]

Strategic Value Vs Market Value in Aqcuisitions

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In the world of mergers and acquisitions, understanding the distinction between strategic value and market value is crucial. Market value provides an objective assessment of a company’s worth based on market dynamics, while strategic value evaluates the specific benefits and synergies a buyer can derive from an acquisition. Recognizing and incorporating both valuation perspectives allows acquirers to make informed decisions that align with their strategic goals and maximize the long-term value of their investments. Successful acquisitions are often driven by a combination of financial considerations and the potential for strategic growth, making it imperative to assess both strategic and market value when evaluating potential targets.