• Services
  • Accounting
  • Consulting
  • Financial
  • M&A
  • Talent
  • Tech
  • Accounting Services
  • Consulting Services
  • Financial Services
  • M&A Services
  • Talent Services
  • Tech Services
Business Insights
Explore Topics

Get the latest news and insights on relevant topics that matter most to you.

Webinars & Events
Register Today

Register for an upcoming event or access our library of on-demand recordings.

Lutz Talk Business
Tune In

Subscribe today for entrepreneurially spirited episodes of witty commentary for young professionals.

Download Now

Take a deep dive into challenging business topics with these free educational resources. 

  • News & Insights
  • About

Lutz is a business solutions firm for people seeking a partner to help energize and heighten economic and organizational success.

Lutz M&A

Purchase Price Allocation

20221114_cc_8452 1-1

Have you recently sold or acquired a business?

If you are selling a business, there are post-closing valuation opportunities that may help you save on taxes. A Nebraska-based seller who performs business outside of the state may qualify for an exclusion of income depending on the nexus of the assets sold. If your sale transaction included a material amount of intangible value, a purchase price allocation may significantly reduce your Nebraska individual income tax liability.

For acquirers who need to prepare an opening balance sheet, we also perform purchase price allocations for GAAP financial reporting.

What is a Purchase Price Allocation?

When buying a business, you must determine the fair value of all assets and any liabilities assumed. This process is performed by an independent expert. It helps you understand the value of the consideration paid and how to identify and distribute tangible and intangible assets and liabilities accordingly. The residual value is designated as goodwill. Both the buyer and seller in a merger or acquisition transaction must report this allocation on their annual tax returns in the year of sale to comply with IRS and state regulations.

Completing a purchase price allocation can be a complex task. The professionals at Lutz M&A have the expertise necessary to ensure tax compliance and accurate financial reporting.



+ Identify & Value Intangible Assets

+ Determine Fair Value

+ Calculate Goodwill

+ Opening Balance Sheet Adjustments

+ GAAP Compliance

+ Nebraska State Income Tax Planning Post-Sale

Lutz M&A

News & Insights

Factors to Consider When Selling a C Corporation
What’s the difference between a stock sale and an asset sale, and why would a buyer or seller ...
M&A Basics Toolkit
Selling your business is complex! Our comprehensive toolkit gives you insight into the world ...
7 Factors to Consider Before Selling Your Company
Have you been approached to sell your business? These days it seems like almost every business ...
How to Enhance the Value of Your Business
What's the value of your business? While many people understand the concept of "valuation," ...
module-bg-desktop module-bg-mobile

Determine a fair value, ensure financial accuracy, and discover key insights.

Be confident that you are getting a fair deal and that your financial statements accurately reflect the true value of your assets.