Unprofitable Tax Benefits

User Generated

pergenytenag

Business Finance

Description

While there may be tax benefits, what might be some additional reasons that a company would want to buy out an unprofitable one? Especially if they are incurring substantial operating losses?

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Explanation & Answer

- It could still be possible to turn a unprofitable company around so that it does incur profits. 

- For the value of its assets 

- For its existing customer base 



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