Asset Purchase Segregation

Asset Purchase Segregation (APS) is a service which quantifies and identifies the various components of realty and non-realty value to ensure that only the real estate component of the acquisition transaction is subject to transfer tax and property tax reassessment. Under state law in many cases, there is a significant difference between the total purchase price and the taxable real estate.

Asset Purchase Segregation encompasses a review of pertinent financial, market, operational, and legal data relating to a proposed or pending property acquisition. Identification of the tangible and intangible assets associated with the acquired property is based on applicable statutory definitions, certain demographic factors, and an economic analysis. It is arguably more valuable than a traditional real estate appraisal in that the report further explains and supports the details behind the overall transaction.

Components that Regency Advisory Group examines:

• Real Estate - the physical structures and the supporting land that comprises the purchased property. 
• Personal Property - moveable physical assets not permanently attached to the real estate that is inherently required to run the business being purchased.
• Intangible Assets - personal property that may be identified and described discreetly, is subject to private ownership, generates a measurable economic benefit for its owner, may be transferred independently from tangible personal property, but lack a physical tangible existence.  Some examples would be:
  • Contracts, licenses, and permits
  • Customer lists
  • Trademark or Trade names
  • Portfolio premiums
  • Lease premiums
  • Value of the business operation
  • Development rights
  • Profit centers
  • Operating agreements
  • Management contracts
  • Administrative services