The cashless middle market financing the equity of a company can be increased without cash and without cash expenses by operating assets by cash deposits or transfers of assets as a contribution in kind. The contribution in kind partially significantly improves a company’s equity. Considering come as items of operating and business equipment, a fleet of vehicles or real estate. Also intangible assets such as patents or licenses can be inserted as a contribution in kind. In the context of the capital increase by contribution in kind, the asset is assessed by an expert. While an increased value of the contribution may arise for a real estate, if their fair value over book value is about because it was largely written off or value-increasing out-of-pocket payments have been made.
After completion, the subscribed capital of the company to the value of the property minus the existing burden is increased. The tax implications of the introduction of a property in a society (E.g. tax, income taxes) are to consider in contract and bringing design in each case. Not only publicly traded corporations, but also many medium-sized companies are organized in the form of small and medium-sized business networks with subsidiaries or sister companies (Group). Here it is possible to install individual companies through merger in another company. Offered affiliates in so far not affiliated, to transfer the shares of a company to another company. In the to-making enterprises, uncovering the hidden reserves, given the actual enterprise value (where the future earnings prospects of the company for consideration) may be inserted in the acquiring company. The capital increase by contribution in kind/Fusion is also about a new company (such as a Shelf company) construct and understand; see.
Individual shares can be evaluate by uncovering the hidden reserves and bring to this value into the acquiring company as a contribution under the boost of the nominal capital. A tax-neutral transfers and merger is possible through appropriate design. The value-added or the increase of the nominal capital in the balance sheet due to the difference of the lower book value of bringing the subject to the higher market value of the contribution in kind. For the introduction of the contribution in kind, he receives-providing more new shares (E.g. GmbH shares, further shares, KG shares etc.) In addition to the strengthening of equity, a contribution often has the effect that opaque company structures are equalised and transparent which has virtually positive effect on the credit rating and the rating of the company.