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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. Additionally, certain contract acquisition costs, such as commissions, may be added to the balance sheet, thus impacting the timing of expense recognition.

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18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

It’s misleadingly precise to have two digits to the right of the decimal in a CAC/LTV multiple for year 3 of your forecast (“Customer Acquisition Cost”/”LifeTime Value of Customer”). While some of your customers may pay via credit card, perhaps some of your largest customers pay on Net 60 or even 90 terms.

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Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services.

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The Key Elements of the Financial Plan

Up and Running

Balance sheet. Major corporations use pro forma statements to illustrate projected numbers, like in the case of a merger or acquisition, or to emphasize certain current figures. your “cost of sale” or “cost of goods sold” (COGS)—keep in mind, some types of companies, such as a services firm, may not have COGS.

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Customer (product) value trumps brand value – M&A data

The Equity Kicker

This chart (which I saw on Broadstuff and was originally published in the Harvard Business Review ) is from audited company accounts following mergers and acquisitions: …we looked at the value of brands and customer relationships as revealed by M&A data covering over 6,000 mergers and acquisitions worldwide between 2003 and 2013.