Publications
Publications
- August 1994
- HBS Case Collection
Intuit, Inc.
Abstract
The merger of two computer software firms with very rapidly growing non-overlapping products makes great strategic sense, but presents difficult valuation and accounting problems. How can a firm pay $225 million to acquire another firm with negligible current earnings, and which promises to produce an immediate $150 MM one-time charge to earnings which will be followed over a five-year period by $65 million of amortization of intangible assets?
Keywords
Valuation; Mergers and Acquisitions; Applications and Software; Accounting; Financial Strategy; Goodwill Accounting; Corporate Finance; Information Technology Industry; United States
Citation
Fruhan, William E., Jr. "Intuit, Inc." Harvard Business School Case 295-028, August 1994.