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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.

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20 angel investor networks you should know about

Growth Business

Recent figures from accountancy firm UHY Hacker Young found a record £2.3bn was invested into UK start-ups via the Enterprise Investment Scheme (EIS) in the year ending April 2022 into 4,480 firms, showing the angel investment network in rude health. They’ve been generous with their cash, too.

Investors 105
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Investing in Enterprise AI Startups: Why I’m Skeptical and Staying Away

Mergers and Inquisitions

However, the specific question here is who profits from these features, not which users benefit the most. There’s nothing “wrong” with this business model, but it’s much closer to an agency or professional services company than a traditional enterprise software startup. They were not completely revamping their business models.

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How to Package and Price Embedded Analytics

Just by embedding analytics, application owners can charge 24% more for their product. How much value could you add? This framework explains how application enhancements can extend your product offerings. Brought to you by Logi Analytics.

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What is the Value of my Medical Practice?

Focus Investment Banking

EBITDA is typically calculated using the steps below: Determine the practice’s net profit in the most recent twelve-month period. Add the following expenses back (add them to your net profit) The core “EBITDA” elements – interest, taxes (generally income taxes only), depreciation, and amortization.

Medical 52
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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 wanted to be able to invest in larger projects and help developers raise money. 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. This is where investing with skills and experience can help.

M&A 130