Hello all.
My partner and I are buying a business and the deal was originally constructed as an asset purchase with all parties agreeing to terms. The current owner has since suggested redoing as a stock purchase for the same amount to make it a "less complicated" transaction.
I realize the negative implications of this as a buyer but I need help putting a dollar value on the difference purchase options as it relates to lost depreciation, future Capital Gains taxes for my partner.
To complicate matters my partner works for the current owner so there are some emotions involved as well.
Purchase Price : $38,000
Equipment $25,000
Goodwill $13,000
Cash Purchase with "0" left on the books for stock purchase option.
Any help would be appreciated.
Thanks
My partner and I are buying a business and the deal was originally constructed as an asset purchase with all parties agreeing to terms. The current owner has since suggested redoing as a stock purchase for the same amount to make it a "less complicated" transaction.
I realize the negative implications of this as a buyer but I need help putting a dollar value on the difference purchase options as it relates to lost depreciation, future Capital Gains taxes for my partner.
To complicate matters my partner works for the current owner so there are some emotions involved as well.
Purchase Price : $38,000
Equipment $25,000
Goodwill $13,000
Cash Purchase with "0" left on the books for stock purchase option.
Any help would be appreciated.
Thanks
