Mergers & Acquisitions
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I have two questions related to Purchase Price Allocation that I believe you may be able to help me with:
1. Do you know why we write-off the entire Existing Deferred Tax Liability (DTL) balance from the Target’s balance sheet during Purchase Price Allocation?
2. Also, in some models analysts write-down the Deferred Revenue balance on target's balance sheet after the transaction closes (say in Year 1, for example). Do you understand the rationale for that?
Thanks in advance and I would really appreciate your help. Read More