you are viewing a single comment's thread.
the political risk is this:company A makes 5 million and has to pay tax on it-company B buys company A for 60 million, 50 million above book value, so company B has 50 million in goodwill on its books. Next year company A makes the same 5 million but since company B owns company A and gets to write off 5 million in goodwill then company A shows no income, thus pays no tax on it. Well the Obamas of the world want to put an end to it.
If it's a stock sale they can't deduct the goodwill for tax purposes anyways, only book or GAAP purposes. If it's an asset sale then they can deduct the goodwill, but only after company A pays capital gains taxes on the $50 million above book value.