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Wrong. It will be valued at something ridiculous like 20x EBITDA (average for tech related companies) and you'll be taxed on that number.
by NavinF 4y ago
Wrong. It will be valued at something ridiculous like 20x EBITDA (average for tech related companies) and you'll be taxed on that number.
- ideamotor 4y agoDoesn’t that depend on who values it? Also, I get the impression they have quite a few liabilities.
- NavinF 4y agoIn the GN interview they said they have plenty of cash. I'm sure they'll have to write down a lot of inventory because prices went down, but for tax purposes their valuation is still going to be very high based on earnings. That's why private companies other than startups rarely go this route.