for a small firm with certain org structures (likely true for the one discussed here), the goal is “get acquired by a large company.”
tax laws allow the startup’s years of losses to apply to the acquiring company, reducing taxable income. An unprofitable company can be more valuable.
for a small firm with certain org structures (likely true for the one discussed here), the goal is “get acquired by a large company.”
tax laws allow the startup’s years of losses to apply to the acquiring company, reducing taxable income. An unprofitable company can be more valuable.