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I'm not an accountant so take this with a grain of salt, but no a SAAS company would not have a zero book value. The software powering the company is an asset
by treis 8y ago
I'm not an accountant so take this with a grain of salt, but no a SAAS company would not have a zero book value. The software powering the company is an asset and should be a quite valuable one. A zero book value company would be something like a consulting firm.
- mbesto 8y agoIIRC, most saas companies will be bought as Stock Purchases and not Asset Purchases, so the math becomes a little easier to do. Difference between the two: https://corporatefinanceinstitute.com/resources/knowledge/deals/asset-purchase-vs-stock-purchase/ https://corporatefinanceinstitute.com/resources/knowledge/de... PS - great explanation of goodwill!