Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Sales Tax

Definition

A tax collected on the sale of goods or services.

Tips

If the owner of a business is required to have a sales tax permit, then sales tax is charged in some states on the sale of the hard assets of the business at closing based on the amount of the purchase price that is allocated to these hard assets, such as furniture, fixtures, and equipment.

Related Resources

M&A Basics | Allocation of Purchase Price