Guidance need with company purchase accounting transaction

USA Discussion in 'General Accountancy Discussion' started by MattIr, Nov 14, 2018.

  1. MattIr


    Nov 14, 2018
    Likes Received:
    Good day friends,
    I need some high level guidance with the following situation

    A private company C Corp was purchased by a PE backed firm.
    The PE firm fund and management form the following companies

    New LLC company 1, it will serve as platform for governance
    New LLC company 1 a new company holding LLC 2
    New company holding LLC 2 acquires 100% of outstanding equity of C Corp (original company purchased)
    New Company holding LLC 2 form NEW company operating LLC 3 (this company will transfer day to day business and be the operating company)

    Under this setup i need some guidance on setup of legal entities and inital accounting transaction related to this.

    Thanks for guidance.
    MattIr, Nov 14, 2018
    1. Advertisements

  2. MattIr

    kirby VIP Member

    May 12, 2011
    Likes Received:
    The purchasing companies will record an “Investment in sub” and IF the purchased subs issue stock, then the sub records the stock. You should get an Advanced Accounting textbook which covers this kind of stuff.
    kirby, Nov 26, 2018
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.