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Ownership Transfer Issues in the Sale of Professional Services Firms

Focus Investment Banking

Are you the owner of a Professional Services firm? The younger partners were presented with a dilemma: They could each increase their stakes in the business and collectively control it but would have to take on—and be personally liable for—the $25 million in debt. It would take years before the debt could be paid down.

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How to Accurately Calculate Gross Margins (and Understanding Their Importance) at Professional Services Firms

Focus Investment Banking

If you’re considering the sale of your consulting or professional services business, you should understand that buyers will be examining your Gross Margin as an indicator of the value of your firm. Professional services companies make money by billing out their experts and consultants at rates higher than the employee cost.

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Earnouts: Sometimes a “Bridge” Too Far

Focus Investment Banking

But do earnouts consistently bridge the gap between buyers and sellers in Consulting and Professional Services deals? Despite the potential value at stake, the buyer balked at the idea of relinquishing control, envisioning strategic integration and synergy across their portfolio of Professional Services businesses.

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Will There Be an IPO for a Specialty Consulting Company in 2024?

Focus Investment Banking

And will that mean that some of the privately held management consulting firms or other professional services companies will choose an IPO this year? It has been some time since a professional services firm chose a public offering as a liquidity strategy. But those companies have been public for more than 20 years.

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What is a Partnership? Exploring Types of Business Partnership

Peak Frameworks

Each partner is personally liable for the partnership's debts and obligations. Here, partners are not personally responsible for the business debts and liabilities or the misconduct of other partners. This structure is commonly used in professional services firms, such as law firms and accounting practices.

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Why Private Equity Investors Find Government Contractors Attractive

Chesapeake Corporate Advisors

For investors that plan to finance a portion of the deal with debt, a government contracting business with visible, low-risk revenue also paves an easier path to securing financing. Stable Contract Base and Long-Term Cash Profile The nature of your government contracts will influence how appealing a PE investor finds your business.

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Updated TDS Rate Chart for FY 2024-25/AY 2025-26

Razorpay

50,000 (per month) 5% NA 194IC Payment that are made under Joint Development Agreement (JDA) to Individual/HUF No Limit 10% 10% 194J Fees paid for professional services Rs. 30,000 10% 10% 194J Amount paid for technical services Rs. 30,000 10% 10% 194J Amount paid for technical services Rs.