Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions and is common in industries such as software, media, telecommunications and professional services. In this article, BDO’s experts provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions, why it is important and the key factors that influence how it is treated. https://lnkd.in/gME4UC-U #mergersandacquisitions #deals #transactionservices
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Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions and is common in industries such as software, media, telecommunications and professional services. In this article, BDO’s experts provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions, why it is important and the key factors that influence how it is treated. https://lnkd.in/g7ZE6JGZ #mergersandacquisitions #deals #transactionservices
What is ‘deferred revenue’ and how does it impact M&A deals?
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Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions and is common in industries such as software, media, telecommunications and professional services. In this article, BDO’s experts provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions, why it is important and the key factors that influence how it is treated. https://lnkd.in/gGJDCiR6 #mergersandacquisitions #deals #transactionservices
What is ‘deferred revenue’ and how does it impact M&A deals?
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Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions and is common in industries such as software, media, telecommunications and professional services. In this article, BDO’s experts provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions, why it is important and the key factors that influence how it is treated. #mergersandacquisitions #deals #transactionservices
What is ‘deferred revenue’ and how does it impact M&A deals?
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Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions, and is common in industries such as software, media, telecommunications, and professional services. In a new article, BDO Director Waqar Ali, and National Transaction Services Leader Sebastian Stevens, provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions. Read the article to explore why deferred revenue is important, and the key factors that influence how it’s treated. #mergersandacquisitions #deals #transactionservices
What is ‘deferred revenue' and how does it impact M&A?
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Some great insights into the key considerations when assessing the appropriate treatment of deferred revenue as part of net debt vs. working capital within M&A transaction completion mechanisms.
Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions, and is common in industries such as software, media, telecommunications, and professional services. In a new article, BDO Director Waqar Ali, and National Transaction Services Leader Sebastian Stevens, provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions. Read the article to explore why deferred revenue is important, and the key factors that influence how it’s treated. #mergersandacquisitions #deals #transactionservices
What is ‘deferred revenue' and how does it impact M&A?
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Great summary of the key considerations regarding the appropriate treatment of deferred revenue in M&A completion mechanisms. As always there are approaches that will favour buyer over seller and vice versa. The key is always to understand all the facts appropriately before agreeing a position or entering into negotiations.
Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions, and is common in industries such as software, media, telecommunications, and professional services. In a new article, BDO Director Waqar Ali, and National Transaction Services Leader Sebastian Stevens, provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions. Read the article to explore why deferred revenue is important, and the key factors that influence how it’s treated. #mergersandacquisitions #deals #transactionservices
What is ‘deferred revenue' and how does it impact M&A?
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This is an interesting article on a key area of contention in deals.
Deferred revenue is a liability that arises when a company receives payment in advance for goods or services that have not yet been delivered or performed. It’s a key area of debate in M&A transactions, and is common in industries such as software, media, telecommunications, and professional services. In a new article, BDO Director Waqar Ali, and National Transaction Services Leader Sebastian Stevens, provide guidance for buyers and sellers on how to consider deferred revenue in M&A transactions. Read the article to explore why deferred revenue is important, and the key factors that influence how it’s treated. #mergersandacquisitions #deals #transactionservices
What is ‘deferred revenue' and how does it impact M&A?
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What is Purchase Price Allocation? Demystifying its Role in M&A Transactions In M&A transactions, understanding key components is paramount, and one such vital element – an element not always eloquently detailed – is Purchase Price Allocation (PPA). PPA is a systematic process of assigning the purchase price to acquired assets and liabilities. In the sale of businesses, purchase price allocation stands as a key framework impacting the after-tax benefits for sellers and buyers. And so, suffice it to say, understanding PPA becomes crucial to framing the deal structure to create equitable division of tax costs and benefits of M&A transactions. We’ll take a pragmatic journey through the Purchase Price Allocation process, starting from foundational concepts and delving into its components, objectives, and the array of benefits it offers. The value of this article will be for you as the seller, to see PPA as not just a procedural step but a strategic tool shaping the success of your exit strategy. Read the full article at the link below. https://lnkd.in/g6bxu6dN #M&A #mergersandacquisitions #businesssale #exitoptions
What is Purchase Price Allocation? | Destined
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One of the most overlooked assets in any M&A transaction is often right in front of us—your accountant. In my experience working across mid-market business sales, I’ve seen accountants serve as key advisors who ensure transactions run smoothly. They’re more than number crunchers; they’re trusted partners, deeply familiar with the business and its financial health. What surprises many owners is how integral their accountant is to preparing a business for sale, supporting due diligence, and structuring the most tax-efficient deal possible (yes, they really do have that “magic spreadsheet” 😉). At ThreeSixty Capital, we always say the right team can make or break a transaction. And in many cases, an accountant is one of the most valuable members of that team. If you’re thinking about selling your business—or just want to start planning for the future—now’s the time to loop in your accountant. Early preparation can save months of headaches down the line. Feel free to reach out if you’d like to discuss how to align your advisory team for success.
In M&A transactions, accountants can be the unsung heroes guiding businesses through complex financial landscapes. Discover how they can add immense value at every stage of a deal—check out our latest article! 👉 https://lnkd.in/gYje7aHH
How Accountants Can Play a Key Role in M&A Transactions - 360 Capital
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M&A transactions rely on contingent consideration clauses to link deal prices to future business performance. These payments can add significant complexity to the accounting reports and tax calculations. Here’s an overview of the buy-side implications. #mergersandacquisitions
Contingent consideration in M&A: What buyers need to know | Our Insights | Plante Moran
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