A Timely Consultation Prior to the Purchase Enables a New Buyer to Seal the Deal With Favorable Terms.

Sheryl Brake, tax partner in the Boulder office, was approached by a client interested in buying an existing retail business. The client consulted with Sheryl prior to the acquisition concerning the allocation of the purchase price. Minimizing cash outlays at the beginning was more important to the client than potential non-cash write-offs attainable from depreciation. With careful negotiations between buyer and seller, and by ascertaining a reasonable allocation of the purchase price, the client was able to minimize "use" tax paid on the acquisition of assets. This resulted in nearly 25 percent in tax savings to the client, thereby freeing up much-needed cash for operations.