article thumbnail

How To Evaluate Your Company’s Value

YoungUpstarts

Liabilities are anything that the company owes, often coming with the word “payable,” and may include items such debt owed to creditors and salaries due to employees. Once you have tallied all existing assets, subtract liabilities to come to a determination of the company’s net assets. If your company is worth only $2.5

article thumbnail

Revenue Recognition’s Effect On M&A

YoungUpstarts

A change in revenue recognition means a change in the due diligence process, specifically accounting diligence, modeling, quality of earnings and cost of integration. In certain industries, such as Software as a Service (SaaS) and hardware companies, the new standard is a minor tweak.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. We want money to make some acquisitions (investors would prefer to fund M&A if they know specific deals – not to encourage bad behavior. otherwise I prefer to invest less and risk less).

Burn Rate 383
article thumbnail

How to Measure Ecommerce Customer Acquisition Cost (+ Tips to Reduce it)

ConversionXL

Customer acquisition cost (CAC) is an important metric for any ecommerce business. Put simply, you need a healthy customer acquisition cost for your business to succeed. It’s up to every ecommerce business to find the middle ground between investing too little in customer acquisition and spending beyond your means.

article thumbnail

18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. Michael first recommends that anyone serious about financial modeling study the Spreadsheet Standards Review Board’s Best Practice Spreadsheet Modeling Standards.

article thumbnail

How To Determine The Value Of A Small Business 

YoungUpstarts

This means that both parties have equal rights to the property bought/gained during the official marriage, and it does not matter who made a more significant contribution to the acquisition. Intangible property means trademarks, patents, copyrights, software and even reputation and trust of customers.

article thumbnail

How to Run Your Company Based on Metrics: What, Why, How, Who, and When

David Teten

I review a lot of board decks with a beautifully hand-crafted page with metrics for the company. Customer Acquisition Cost (CAC). Steve Cody, CEO of The Better Software Company* observed, “To drive the growth numbers that we need and reinforce our culture, we keep our key sales metrics up on three live monitors in the office.

Metrics 60