Just what is recurring revenue?
We’ve worked with companies across many industries and one question that comes up all the time is: “how much of your revenue is recurring?” Are customers coming back regularly? Predictably? Are you competing for each sale, or is repeat purchase more typical? Are you “spec’d in” to customers’ products and what’s the lifecycle of those […]
How has the COVID-19 pandemic changed the deal process?
It’s been remarkable to see the rebound in deal activity in the last few months and to observe the M&A process shift to virtual settings. A few things that we’ve observed: Most or all of the deal process can be done remotely. Most meetings can be done over videoconferencing, and most diligence can be done […]
Changing gears in the acquisition engine
How has the M&A market shifted? The COVID-19 health crisis and ensuing economic disruption has impacted virtually every aspect of society. While, in the midst of this uncertainty, it may be challenging to think long-term, we are seeing some companies start to plan for acquisitions in the coming months. These companies are well-capitalized, and have […]
Valuing Companies by Analyzing their Customers
There is a recent article in the Harvard Business Review describing the benefits of valuing companies by analyzing their customers – their retention, churn and cost of acquisition. Customer-based corporate valuation (“CBCV”) is meant to highlight the true value of an entity due to the loyalty of its clientele. To an old cataloger like me, […]
The 4 P’s of Business Valuation
How can business owners increase the valuation of their business prior to an M&A transaction or business sale? Mirus recently collaborated with other Boston-area trusted advisors (including a leading accounting firm, law firm, and commercial bank) to gather 40 business buyers and sellers for a roundtable discussion of proactive steps CEOs and owners can implement […]
The $360 billion revenue question
The way you recognize you company’s revenues is about to change. In particular, the way companies recognize revenue for licenses and long-term contracts, including the those traditionally measured under a “percentage-of-completion” method, will be affected by changes FASB has planned to make effective January 1, 2017. The total amount of deferred revenue on the books […]
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