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

Software Equity Group

In a business selling a material product, your volume of sales requires you to increase the amount you spend on materials to produce said product. 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.

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Useful Software Industry Acronyms for Executives

Software Equity Group

EBITDA (Cash-Adjusted): Earnings Before Interest, Taxes, Depreciation & Amortization You are likely familiar with EBITDA (earnings before interest, taxes, depreciation, and amortization), used to measure profitability. R40: Rule of 40% Software companies use the Rule of 40 to evaluate overall growth and profitability.

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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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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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Thinking of Selling Your Business? Why You Need a Sell-Side Quality of Earnings Report

Chesapeake Corporate Advisors

If you are considering selling the business you have worked hard to build, you want a smooth sale process and an optimal outcome. Why You Need a Sell-Side QofE When Selling Your Business At a high level, a sell-side QofE report analyzes and validates your business’s profitability, assessing both revenue and costs. Net Working Capital.

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Sell Side M&A Blog Series - Vol 4 - Common Questions Related to the Sell Side M&A Process

RKJ Partners

It is imperative to maintain confidentiality throughout the sale process and to take measures that will guard against competitors, employees, vendors and customers learning of an impending sale. In general, it can take from 3 to 18 months to complete a business sale, with the most common range of 6 to 12 months.

M&A 40