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Revenue Recognition’s Effect On M&A

YoungUpstarts

Additionally, certain contract acquisition costs, such as commissions, may be added to the balance sheet, thus impacting the timing of expense recognition. Companies should review working capital needs and assumptions and revise them to fit the new cost patterns as these are likely to be assessed in the due diligence process as well.

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18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

A good model needs to factor in cash collections, disbursements, and other working capital considerations with a Balance Sheet and Statement of Cash Flows. This is especially important for companies that carry inventory on their balance sheet. 17) Include a sensitivity analysis.

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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. Balance sheet . Your balance sheet is a snapshot of your business’s financial position—at a particular moment in time, how are you doing?

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

YoungUpstarts

You might consider intellectual property and real estate, too, especially where their true value isn’t represented on the balance sheet. Typical ones include inventory, accounts receivable and fixed assets.

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Cash Flow 101: Building a Cash Flow Statement

Up and Running

Most transactions relating to the sale or purchase of property, equipment, or other non-current assets are included in your investing activities, as are any expenses tied up in mergers or acquisitions. If your business plays in the stock market at all, you’ll also have to indicate when you buy or sell securities here as well.

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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.

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After Facebook's IPO flub, value of tech startups falls back to earth

www.theverge.com

Things have really picked up in terms of mergers and acquisitions. There is an immense amount of capital on the balance sheet of big tech companies and not a lot of value to keeping cash," said Gurley. When the market shuts a window, however, it opens a door.

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