Case | HBS Case Collection | November 2005 (Revised November 2007)

by Henry B. Reiling


Two underperforming companies are seeking to combine on terms that will preserve the net operating loss of one for use against their combined future profits or at least against the future profits of the company that generated the losses. The questions are whether the proposed plan of combination will accomplish these objectives and where there are alternative structures that would improve upon the proposed plan.

Keywords: Code Law; Corporate Governance; Mergers and Acquisitions; Cost Accounting; Taxation; Corporate Strategy; Profit; Crisis Management; Financial Management; Legal Services Industry; Service Industry; United States;


Reiling, Henry B. "" Harvard Business School Case 206-044, November 2005. (Revised November 2007.)