BDO Oman’s Post

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

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

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

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

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.

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.

This is an interesting article on a key area of contention in deals.

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  

Part 2 of my series is on why trade credit ratings matter for PE funds and their portfolio companies. They tend to stricture their acquisitions in a certain way that can be challenging for the CRA's to provide strong ratings and limits for them.......... https://lnkd.in/e5_FmSTG

Learn to convert an equity sale into an asset sale for tax advantages with the IRC 338(h)(10) election. Explore benefits for buyers and sellers in acquisitions. #equitysale #assetsale #corporatebusinesssale