vcfo Blog

Welcome to the vcfo blog! Here you will find posts written by our finance, HR, technology and recruiting experts.

Posts by Russell Naisbitt

Avoid the Rev Wreck

10.09.2018 | Published By:

Russell Naisbitt

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Avoiding a Revenue “Wreckognition” Nightmare

How the new Revenue Recognition Standard Could Impact D

The way entities recognize revenue and certain expenses associated with obtaining or fulfilling contracts is changing as a result of the new revenue recognition accounting standard (ASC Topic 606).  It is important that entities understand the impact of these changes on financial metrics impacting their debt covenants so that Rev Rec does not become a Rev Wreck!

The repercussions of changes in financial metrics could impact all kinds of contractual arrangements including, but not limited to: executive compensation, sales compensation, employee profit share, earnouts and loan agreements.  

Tags: financial consulting firms,strategic planning,financial strategy,executive leadership,operational advice,revenue recognition,cash flow management,risk mitigation

Revenue Recognition and M&A Transactions

09.20.2018 | Published By:

Russell Naisbitt

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Buyers and sellers should pay careful attention to the potential impacts of the new revenue recognition standard on M&A transactions. 

In late 2017 vcfo Houston Practice Manager, Russell Naisbitt, enjoyed the opportunity to serve as transaction CFO for the sale of a small SaaS software company to a much larger publicly-traded company.  The Seller had wisely put together a deal team to represent them in the transaction that included an investment bank specializing in the sale of software companies, an attorney experienced in M&A, and a team from vcfo which also included a controller and an HR specialist.

Tags: strategic planning,financial strategy,executive leadership,cfo consulting,risk mitigation,financial services,revenue recognition