Business case
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 had to be disposed of at fair market value.
Even before the COVID 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 proved the necessity of this shift in order to avoid the volatility of revenues triggered by the public health crises and restrictions on public mobility.
We estimated the fair market value of the disposed assets in order to define the price for the intra-group transaction.