Comments on: Sell a Software Company – The Valuation Dilema

By: mrxisthename11

mrxisthename11 — Sat, 24 Oct 2009 20:31:22 +0000

That is in the discretion of the acquiring Company.. It may allow to operate in the same name or bring it under one of its units / branches.. If it allows to operate in the old name it should provide the name of the acquiring company next to existing company.

Ex : if A Ltd acquired B Ltd, the name should be B Ltd (Unit of A Ltd).. However the name of B Ltd wil be removed from the index in the office of the Registrar of Companies.

By: sazy fizle

sazy fizle — Sat, 24 Oct 2009 18:27:19 +0000

The accountants work with the lawyers to complete the contracts and provide any financial summeries etc that may be required (especially if the company is public).

By: hallielaw

hallielaw — Sat, 24 Oct 2009 18:06:25 +0000

Wow, that's a funny question. I was with a telecom company that recently sold out, 16 switches to one company and the rest to another. Luckily I stayed with the company that purchased the 16 and am in a more stable company. I think that factors that weighed in included revenues, but also market penetration, lit fiber miles, etc. Someone with low revenue but good market penetration would probably not be looked at for acquisition. If you want to share experiences you can reach me at kmcpmgoodson@yahoo.com.

By: A.Rahman

A.Rahman — Sat, 24 Oct 2009 16:39:45 +0000

It's easier for the accountants if it is merged into a company that is a subsidiary with no other business. In some cases it also protects privacy, because if they merged directly into the acquirer, then a lot of the acquirer's financials would have to be disclosed.

By: John T

John T — Sat, 24 Oct 2009 15:52:35 +0000

Just divide your original purchase price to have in the current year a cost of .50 cents per share and a cost of .25 cents per share for each of the next two years. That way your cost %'s will match your sale payment %'s. As far as a basis of $0 setting off red flags with the IRS that isn't the case at all. Insurance companies have gone from mutual insurance companies to stock insurance companies, and have given shares to insurance policy holders (I have shares of Prudential and my wife has shares of Met Life because of this, and neither of us paid anything for those shares, so our basis in the stocks is $0).