How Would An Accretion / Dilution Model Be Different For A Private Se

1.	How Would An Accretion / Dilution Model Be Different For A Private Seller?
Answer» The mechanics are the same, but the transaction structure is more likely to be an ASSET purchase or 338(H)(10) election; private sellers also don’t have Earnings Per SHARE so you WOULD only project down to Net Income on the seller’s Income Statement. Note that accretion / DILUTION makes no sense if you have a private buyer because private companies do not have Earnings Per Share. The mechanics are the same, but the transaction structure is more likely to be an asset purchase or 338(h)(10) election; private sellers also don’t have Earnings Per Share so you would only project down to Net Income on the seller’s Income Statement. Note that accretion / dilution makes no sense if you have a private buyer because private companies do not have Earnings Per Share.

How Would An Accretion / Dilution Model Be Different For A Private Seller?

Answer»

The mechanics are the same, but the transaction structure is more likely to be an ASSET purchase or 338(H)(10) election; private sellers also don’t have Earnings Per SHARE so you WOULD only project down to Net Income on the seller’s Income Statement. Note that accretion / DILUTION makes no sense if you have a private buyer because private companies do not have Earnings Per Share.

The mechanics are the same, but the transaction structure is more likely to be an asset purchase or 338(h)(10) election; private sellers also don’t have Earnings Per Share so you would only project down to Net Income on the seller’s Income Statement. Note that accretion / dilution makes no sense if you have a private buyer because private companies do not have Earnings Per Share.

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