Purchase Acquisition

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Purchase Acquisition

In accounting, a way of recording a merger or acquisition in which the acquiring company treats the target company like an asset such as equipment or stock. That is, in a purchase acquisition, the acquiring company simply adds the fair market value of the target company's assets to its balance sheet. If the acquisition cost more than the fair market value, the excess is recorded as goodwill. Purchase acquisition is less common than pooling-of-interests, because goodwill is recorded against future earnings, reducing the company's profit.
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Proceeds from this recapitalization enable us to stabilize our balance sheet through the consolidation of our senior debt while discharging secondary financing and trade liabilities associated with our original center purchase acquisitions.
16 says entities that engage in purchase acquisitions may include certain associated costs in the acquisition price, thereby capitalizing the costs rather than deducting them from income as an expense in the current period.
This ability to integrate with a variety of leaders and existing network appliances is invaluable to pharmaceutical companies that are constantly merging various infrastructures, through consolidation or purchase acquisitions.
The pro forma presentation excludes the amortization of intangible assets related to purchase acquisitions and the non-recurring charge for in-process research and development related to purchase acquisitions.
5% primarily due to purchase acquisitions consummated during 1997 and 1996 and a 3.
3 million charge for in- process research and development related to purchase acquisitions.
The company cited loan growth and purchase acquisitions completed in the second quarter of 1994 and the first quarter of 1995 as reasons for the increase.
0 percent of the increase came from internal loan growth, with the balance resulting from purchase acquisitions, Knudson said.
In addition to internal growth and asset purchase acquisitions, we have used our stock several times for mergers in the past two years; we have also done two stock offerings and split our stock 2 for 1 since our March 1994 IPO, all of which have increased our float and market capitalization.
Excluding purchase acquisitions, fourth quarter sales would have increased 8%.
The company also said it had increased expenses for advertising in new markets and additional amortization of intangibles attributable to the year-end 1992 purchase acquisitions.
Capital levels improved dramatically in recent years due to a June 1991 equity offering and the issuance of stock in connection with purchase acquisitions.