- 12 - acquired Rose customer accounts was $12,951,000, which was adjusted to $12,587,000 as an allocation of tax basis under section 338. Deloitte allocated the value of Rose’s institutional customers, which represented a small portion of Rose’s total customers (in actual numbers and revenue), between the intangible assets denominated “Chase Vendor Agreements” and “Chase Priority Marketing Access Agreement”. The vendor and marketing agreements were valued at $592,000 and $690,000, respectively, and were assigned a tax basis of $575,000 and $671,000, respectively. On April 30, 1989, Rose was merged into petitioner, and by June 30, 1989, petitioner had withdrawn Rose’s trade name from use. By that same time, petitioner had closed all Rose’s offices and sold Rose’s furniture and fixtures. Approximately 25 of the 107 Rose employees continued their employment with petitioner, and the others either refused offers or were terminated after the acquisition. Former Rose brokers who stayed on with petitioner were required to service any retained Rose customers under petitioner’s service policies. For example, it was Rose’s policy to have a specific broker service a particular customer, whereas under petitioner’s approach, customer representatives did not typically have specific customers. In determining the price to offer or pay for Rose, petitioner used comparable sales and discounted cashflowPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011