YoungUpstarts

JULY 10, 2017

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Specifically, the new standard will follow a five step model for revenue recognition: Identify the contract (the deal that has been reached).

Technical Review 124

Technical Review Revenue Software Review Due Diligence 124

David Teten

AUGUST 6, 2015

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”). A more mature organization may project future revenues based on their actual sales pipeline, with a probability adjusted percentage based on stage.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

YoungUpstarts

MAY 14, 2018

Then value the acquisition in the context of your business, giving consideration to the likely cost savings and potential revenue lift that can result from combined capabilities. Growth scenarios or turnarounds and fixes often require an infusion of cash beyond the cost of the acquisition. 1+1=2 is still a positive outcome.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

Up and Running

JULY 22, 2014

Balance sheet. It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. Cash flow statement.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148