We are working on an acquisition. My boss wants me to calculate the Return on Invested Capital (ROIC) for the target company. She does not want me to calculate our Return on Investment ROI for the acquisition. I think she wants me to measure the effectiveness of their internal capital investments. I am not sure how to calculate return on invested capital.

accounting financial-model finance

asked by boris89

I am reviewing financial projects from a technology start up. They show the gross profit margin as high as 118%. In some years it is less than 100%. Is there any circumstance that gross profit margin would exceed 100%?

accounting financial-model

asked by guy79

We are looking at a lot of investment and acquisition opportunities, including a mix of established and new businesses. Many of them have revenue "hockey sticks" in the projected years. I mean that they assume fast growth in sales once they finish project XYZ. Their financial projections show incredible growth. Of course, we are skeptical but our team cannot agree on how to best forecast growth. I'd like to know if there are norms or quantitive data about growth rates out there that we could use in our models to come up with a better valuation.

financial-model business-valuation finance

asked by rachel83

I work for an established software company in operations, which means that I do not have any role in product management or developement. I want to pitch an software project idea to the product management team based on my work with our clients. I have written most of the business case with revenue projections, development costs, and continuing maintenance costs based on some internal and external data. However, I'm struggling with the advice I've seen to consider opportunity costs. How do I get that data? Does my business case need to include it?

product-development product-management financial-model

asked by nadine73

The founders of a startup business want to discuss the idea in more detail, so they need a business plan. Most business plans are too complex for this early stage of ideation about the business. Is there a short list of topics or headings? What parts of the business should the founders discuss at this early stage?

financial-model strategic-planning startup

asked by Jonah-13

I am part of a start up looking to raise some early money. Most of the investors we talk to want to give us a convertible note. We were expecting to defend our valuations and ownership percentages. The idea of debt for our early business is not attractive to most of the founders. What are the practical implications of the convertible note? Do investors typically get a board seat if they offer a convertible note?

financial-model financing startup entrepreneurship debt

asked by GlennaT