Any comments/guidance on the following will be greatly appreciated:
1) Confirming my understanding: if we purchase 100% of a company, we can allocate the purchase price over 15 years as goodwill amortization. Is this correct? Any nuances to be aware of?
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2) If we buy the majority of a business, e.g. 80.1%, are we able to allocate that 80.1% of the purchase price over 15 years, or are there any considerations we need to be aware of?
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3) let's say we buy 80.1% of a company that's depreciating a lot of equipment, ~$1M per year, does the change of control affect this? Will we be able to continue to depreciate this equipment the same way, or is there any reset in the asset base valuation?
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4) Debt Financing: let's say we need to borrow $5M and the company has $2M in assets. If we go to a bank, would we be able to borrow $2M via asset based lending and $3M via cash flow based lending?
Thank you!
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