Revenue recognition impact on company valuation
Posted on 16. Dec, 2008 by admin in Company Valuation
One of the key aspects when looking at comparables (revenue, EBITDA, etc) is revenue recognition. To help illustrate revenue recognition, let’s take a company that charges clients $120,000 for services over a year long period. The income statement shows that income at $10,000/month accounting for when the services are performed and realized by the customer [...]
Valuation techniques: Round and Exit Comparables (comps)
Posted on 11. Nov, 2008 by squareroots in Company Valuation
Round Comparables
Round comparables (aka comps) are useful when determining a pre-money valuation for a company that has revenue. A source like Triple Tree provides some nice public comps based on trailing twelve months (TTM) of revenue, however they may be out of date. Even then, it will give point you in the correct direction for [...]