Category Archives: Accounting

Economies of scale: the good and bad

Posted on October 1, 2013 by berkeleythoughttrain

Today, we’ll look at the other side of economies of scale in a common financial ratio used to forecast expenses: SG&A/Sales. Fixed components of SG&A tend to give economies of scale to the SG&A/Sales ratio. Before taking an analytical approach … Continue reading →

Posted in Accounting, Economics, Finance | Tagged , | 1 Comment

Analysis of Precedent Transactions for M&A

Posted on May 22, 2013 by berkeleythoughttrain

Recently, for an M&A assignment I did an analysis of precedent transactions for NetSuite’s acquisition by Oracle. A precedent transactions analysis is designed to imply a value of a company based on publicly available financial terms and premiums paid for … Continue reading →

Posted in Accounting, Finance, Mergers & Acquisitions, Strategy | Tagged | Leave a comment

Rackspace: scenario analysis

Posted on April 30, 2013 by berkeleythoughttrain
Posted in Accounting, Finance, Strategy | Tagged , | Leave a comment

Value of the non-compete agreement

Posted on January 15, 2013 by berkeleythoughttrain

For the buyer of a small, 10-15 member consulting firm, the value lies in existing customer contracts, goodwill generated by the horizontal or vertical integration the acquisition represents, and in some cases- most importantly- in the non-compete agreements signed by … Continue reading →

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