Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 83 - Particular Rights and Immunities
Section 8368.4 - Fair market value

(a) Establishment.--A successor business entity may establish the fair market value of total gross assets of the transferor as of the time of the merger or consolidation by any reasonable method under the circumstances, including the following:
(1) By reference to the going-concern value of the assets or to the purchase price of the assets in an arms-length transaction.
(2) In the absence of other readily available information from which fair market value can be determined, by reference to the value of the assets recorded on a balance sheet.
(b) Intangible assets.--Total gross assets under this section shall include intangible assets.
(c) Prima facie evidence.--A showing by the successor business entity of a reasonable determination of the fair market value of total gross assets shall be prima facie evidence of their fair market value.
(d) Burden.--Following a reasonable determination of the fair market value of total gross assets by the successor business entity, a claimant disputing that determination shall have the burden of establishing a different fair market value of the total gross assets.
(e) Insurance settlement.--To the extent that total gross assets include liability insurance, a settlement of a dispute relating to liability insurance coverage entered into by the transferor or successor business entity with the insurer of the transferor prior to the effective date of this section shall be determinative of the total coverage of the liability insurance in the calculation of the transferor's total gross assets.

Cross References. Section 8368.4 is referred to in sections 8368.2, 8368.5 of this title.

Structure Pennsylvania Consolidated & Unconsolidated Statutes