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06-30-2023 Newsletter: Mastering the Paper LBO: A Crucial Part of the Private Equity Interview Process

OfficeHours

Start by writing out the following lines of the income statement: on Revenue EBITDA Less: Depreciation and Amortization (D&A) EBIT Less: Interest Expense EBT / NOPAT Less: Taxes Net income The “less” indicates a subtraction to get the following line (ex. You may be given an assumption for how long the asset’s hold period will be.

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Will a buyer expect us to have audited financials or GAAP-compliant statements? What financial documentation might I be overlooking as we prepare for a sale?

iMerge Advisors

In this article, well break down what buyers expect, when audits or GAAP compliance become essential, and which financial documents are often overlooked yet critical in a successful M&A process. It helps buyers assess revenue durability and customer lifetime value key drivers of SaaS multiples.

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Tax Benefit

Wall Street Mojo

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series) –>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​ Financial Modeling & Valuation Course Bundle ​ ( 25+ hours of video tutorials with step by step McDonald’s Financial Model ).

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What are the key financial metrics buyers look for in a software company?

iMerge Advisors

Here are strategic steps to increase value before going to market: Clean up financials : Ensure GAAP-compliant financial statements, ideally audited or reviewed by a reputable firm. Reduce customer concentration : Diversify your revenue base where possible.

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How do I sell my software company?

iMerge Advisors

A well-prepared company signals professionalism and reduces perceived risk both of which drive valuation. litigation, debt) are disclosed Team & Org: Document key roles, retention plans, and any dependencies on founders or key personnel Many founders underestimate the time and effort required here.

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How do I sell my software company?

iMerge Advisors

Buyers will scrutinize every aspect of your business from financials to codebase to customer contracts. The more organized and transparent you are, the smoother the process and the higher the buyer confidence.

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What is an Invoice Number and How to Generate One?

Razorpay

As the new fiscal year 2025 commences, the invoice number would reset to ‘ INV-2025/001′ Components of an Invoice Number Invoice numbers typically comprise several key components that work together to create a unique identifier 1. The first invoice of 2024 would be numbered ‘001’, followed by ‘002’, ‘003’, and so on.