Remove Cost Remove Merger Remove Revenue
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Revenue Recognition’s Effect On M&A

YoungUpstarts

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Specifically, the new standard will follow a five step model for revenue recognition: Identify the contract (the deal that has been reached).

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9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

You need a stable customer base with an automatically renewing revenue stream, such as the subscription model. This reduces the cost of customer acquisition, allows easy upgrades for service and new features, and improves customer loyalty in the face of new competitors in the market. Prioritize mergers and acquisitions early.

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6 Considerations For Going Public Via Reverse Merger

Startup Professionals Musings

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. The cost of the shell, plus the cost of navigating the process, can add up to a half-million dollars, depending on the shell company, according to LawCast , a law firm based in West Palm Beach, Florida.

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6 New Venture Ending Alternatives You May Contemplate

Startup Professionals Musings

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Most experts don’t recommend this approach as your default strategy anymore.

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10 Key Business Plan Elements Not In A Product Spec

Startup Professionals Musings

For example, “We just patented a new battery technology that will cut your smartphone charge time and cost in half.” If possible, quantify these in non-technical business terms, such as dollars saved or replacement costs over time. They want to see revenue to share in the return. Use non-fuzzy terms to quantify customer value.

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6 Strategies For Startup Exit That Investors Accept

Startup Professionals Musings

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Most experts don’t recommend this approach as your default strategy anymore.

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6 Hurdles For Going Public Through A Reverse Merger

Startup Professionals Musings

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Yet reverse mergers are not all bad.

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