Our client, a major international hospitality company, decided to dispose of its central reservation software to one of its subsidiaries providing digital hospitality services. Under French tax regulations, the assets should be disposed of at a fair market value price.
Even before the COVID-19 crisis, companies providing digital solutions, notably in the hospitality industry, were seeking to shift their business models to recurring types of revenues working on SaaS models. COVID-19 proved the necessity of this shift in order to avoid the volatility of revenues triggered by the public health crisis and restrictions on people’s mobility.
