Supercharged IPO is a new and controversial financial transaction that has dramatically increased in popularity over the past few years as companies try to extract as much value as possible from the IPO process.
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A new white paper from Gladriel Shobe, Associate Professor, Brigham Young University Law School looks at the benefits of these transactions and considered whether the SEC should continue to allow such a process.
The supercharged IPO
The traditional IPO structure is comparatively inefficient from a tax perspective. That said, it can be "supercharged" to increases the basis of the assets of the newly public company thus increasing a number of depreciation deductions the new company can take against its future income. Using this...
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