
The Value of Net Operating Losses
Frank, Mary Margar...
The Value of Net Operating Losses
Frank, Mary Margaret; Right, Jonathan M.
C-2256 | Published August 29, 2007 | 13 pages. Technical Note
Collection: Darden School of Business
Product Details
This technical note provides an overview of the tax law governing the use of a target's net operating losses (NOLs) and other tax attributes by the acquirer. Every transaction requires the acquirer to assess the impact of any limitations under the tax law on the use of the target's NOLs. Because these limitations affect the value of the NOLs, they affect the price the acquirer is willing to pay for the loss corporation and ultimately the optimal deal structure.
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