Remove Equities Remove Professional Services Remove Profitability
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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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The Value of Tech Due Diligence in Services Firms

Beyond M&A

This week’s focus is specifically on professional services firms. Unlike technology or SaaS companies, these “non-tech” businesses are often at higher risk of budgetary and technology risk because their service and product lines need thorough assessment, followed by alignment with technology. The solution?

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How to Calculate Cost of Goods Sold (COGS) for SaaS Companies w/ Examples

Software Equity Group

COGS is a key metric private equity investors and strategic buyers use to evaluate companies. How to Find Costs of Goods Sold Expenses to include in COGS are those directly attributable to the delivery of the goods sold by a company or the services provided. Cost of Goods Sold Example As an example, revenue minus COGS is gross profit.

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10 Concepts You and I Can Learn About M&A and Creative Deal Structuring From How2Exit's Interview With Roland Frasier Investor, Business Mentor and Strategist

How2Exit

He realized that if he could buy enough companies, he could exit several of them a year and receive a large amount of profit in one go. However, many of these people find that they haven't built a sellable business and don't know how to professionalize it. Roland's story is a great example of how it is possible to play a bigger game.

M&A 130
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What is the Value of my Medical Practice?

Focus Investment Banking

This article focuses on how medical practices are valued by private equity-backed groups, and to an extent, health systems and other strategic acquirers. Physician practices are almost always valued on a multiple of EBITDA basis in transactions with private equity groups or similar buyers. We explore each in turn below.

Medical 52
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20 angel investor networks you should know about

Growth Business

Contact: +44 (0)20 7240 0202 Equity Gap Bio: Established in 2010 to help match private investors with young entrepreneurial companies looking for early stage business funding, Equity Gap is an Edinburgh-based business angel syndicate with 150 active members. More on Equity Gap’s investment criteria here.

Investors 105
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Event-Driven Hedge Funds: The Best Home for Bankers Turned Investors?

Mergers and Inquisitions

Event-Driven Hedge Funds Definition: Event-driven hedge funds bet on specific corporate actions, such as M&A deals, divestitures, spin-offs, bankruptcies, and business reorganizations, and they profit based on changes in the value of a company’s debt or equity after the action. revenue and 11.5x

Funds 64