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Visit www.rtdinsights.com or email me at rzacharia@rtdinsights.com for more!

Uncertainty is everywhere. Regardless of where you as a person or as a business are today, the future always brings a level of uncertainty (both good and bad) that is uncontrollable.

The uncontrollable outcomes and impact of the future in business can rarely (if ever) be fully prevented or avoided. However, these outcomes can be mitigated and managed with appropriate planning and prudent long-term orientation and behaviors.

My learnings come from experience and observation from clients I have had the privilege of working closely with. …


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Visit www.rtdinsights.com or email me at rzacharia@rtdinsights.com for more!

Building on this prior piece on working capital, this article focuses on examples on common presentation methodologies, along with typical types of working capital and working capital trends.

Although every company is unique and must always be assessed independent of another business, there are a handful of best practices and rules of thumb that folks should utilize in analyses and workflows. By having this information available, individuals are empowered to make actionable, better-informed business decisions based on increased understandability of working capital and be in a position of strength as it relates to working capital negotiations in transactions.

Typical Types of Working Capital and Working Capital Trends for Businesses

Generally, there are a handful of typical categorizations and types of working capital that businesses operate with. It is important for individuals that assess working capital to be aware of each category, and where a business fits on the spectrum of working capital types. …


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Visit www.rtdinsights.com or email me at rzacharia@rtdinsights.com for more!

Typically, for businesses of all types and sizes, working capital is operationally defined as total current assets minus total current liabilities, which is a way to measure a company’s liquidity at a given point in time. This can help give business owners, management teams, and investors an understanding of how much cash is needed to fund daily (and future) operations, and which asset and liability accounts are integral to the makeup of the business.

However, within a transaction (particular, in an M&A context), working capital is approached in a different and more scrutinized manner. This is due to the fact that many buyers / investors structure transactions under a cash-free, debt-free basis (i.e. sellers of a company assume cash and debt in the business), and also heavily negotiate on the inclusion / exclusion of certain items and amounts in working capital targets and definitions. …


In this series, I will go through a list of public (and formerly public) software and SaaS companies, and run through a set of operational benchmarks based on publicly available data. Using public information such as SEC filings, press releases, earnings transcripts and investor presentations, I have pieced together a variety of items that are noteworthy to monitor and understand for these companies of varying scale, growth rates and profitability. Given the sheer amount of publicly available data and information circulated over the time horizon considered in this article, I may have missed item(s) worthy of consideration (so please leave me your thoughts!) and will not be adjusting all of the historical financials on a pro forma basis for M&A. …


In this series, I will go through a list of public (and formerly public) software and SaaS companies, and run through a set of operational benchmarks based on publicly available data. Using public information such as SEC filings, press releases, earnings transcripts and investor presentations, I have pieced together a variety of items that are noteworthy to monitor and understand for these companies of varying scale, growth rates and profitability. Given the sheer amount of publicly available data and information circulated over the time horizon considered in this article, I may have missed item(s) worthy of consideration (so please leave me your thoughts!) and will not be adjusting all of the historical financials on a pro forma basis for M&A. …


In this series, I will go through a list of public (and formerly public) software and SaaS companies, and run through a set of operational benchmarks based on publicly available data. Using public information such as SEC filings, press releases, earnings transcripts and investor presentations, I have pieced together a variety of items that are noteworthy to monitor and understand for these companies of varying scale, growth rates and profitability. Given the sheer amount of publicly available data and information circulated over the time horizon considered in this article, I may have missed item(s) worthy of consideration (so please leave me your thoughts!) and will not be adjusting all of the historical financials on a pro forma basis for M&A. …


In this series, I will go through a list of public (and formerly public) software and SaaS companies, and run through a set of operational benchmarks based on publicly available data. Using public information such as SEC filings, press releases, earnings transcripts and investor presentations, I have pieced together a variety of items that are noteworthy to monitor and understand for these companies of varying scale, growth rates and profitability. Given the sheer amount of publicly available data and information circulated over the time horizon considered in this article, I may have missed item(s) worthy of consideration (so please leave me your thoughts!) and will not be adjusting all of the historical financials on a pro forma basis for M&A. …


In this series, I will go through a list of public (and formerly public) software and SaaS companies, and run through a set of operational benchmarks based on publicly available data. Using public information such as SEC filings, press releases, earnings transcripts and investor presentations, I have pieced together a variety of items that are noteworthy to monitor and understand for these companies of varying scale, growth rates and profitability. Given the sheer amount of publicly available data and information circulated over the time horizon considered in this article, I may have missed item(s) worthy of consideration (so please leave me your thoughts!) and will not be adjusting all of the historical financials on a pro forma basis for M&A. …


Across today’s tech-business landscape, investors and other individuals often times tend to overlook service (and service-heavy) businesses, and discount these companies when compared to software / SaaS entities.

Certainly, this may be the result of folks being feverish followers of the article penned by Marc Andreessen in 2011 (“Why Software Is Eating the World”), a true lack of appreciation for the unique, varied business and financial models of service businesses (generally less recurring revenue, more project-based / lumpy, lower profit margins vs. software / SaaS) or some other rationale.

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“Nom nom nom” (source: http://www.22michaels.com/2014/04/software-is-eating-world.html)

Regardless of the reasoning, service businesses and their management teams / owners often suffer from trying to monitor and explain their metrics and performance to others, who attempt to assess service companies against criteria more aptly suited for software businesses. This results in investors passing up on solid businesses because they do not “fit” into their view of what a strong business is and reduction in enterprise value (and a whole heck of a lot of frustration and confusion) for the service business owner and team members. …


Given Excel’s flexibility and power in data analysis, it is often used as the visualization tool of choice for a number of professionals. It allows individuals to quickly and effectively create analyses and then depict the results in a clean, concise fashion with a variety of chart and graph types.

For those experienced in using Excel, there are unfortunately a number of tedious tasks that require a lot of time and patience to get through. Over the years, Microsoft has taken note of some of these pain points and made gradual improvements to its Excel product. However, one issue that has remained through all of the improvements is the inability for users to quickly and seamlessly remove data labels in graphs and charts that have no data (i.e. …

About

Ramin Zacharia

Helping business owners, investors & other folks with practical insights — CFO @ Venminder (venminder.com); Founder @ RTD Insights (rtdinsights.com) — Chicago

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