About the company’s growth and profit targets

It is very important to set the company’s growth and profit goals correctly and to manage them closely.
We inspect those key indicators to make sure that we are on track.
However, when it comes to mergers and acquisitions (M&A), it’s a different story.
You may be in M&A discussions to acquire a managed services company or to sell your managed or cloud business.
There are a few clear ideas on how best to approach this.
Valuing a managed services business on a multiple of revenue or EBITDA is of course highly dependent on the market conditions at the time.
We are not going to focus specifically on this.
Rather, we will focus on how to predict the future revenues and profits of the managed services business on which the valuation is based.
In other words, it’s about how you project the future revenues and profits of the managed services business on which to base your valuation.
When buying a managed services company, you naturally want to
You need to project what the income statement will look like for the next three to five years.
Here’s what to do if you are buying a managed services company and how to value yourself if you are selling it.
First, you need to look at and evaluate the future income statement.
Figure out how the company you are selling to thinks about their business.
Expect it to be based on well-founded facts.
Hopefully, it is based on well-supported facts.
From a valuation perspective, look at the projected P&L of a managed services business to understand the dynamics and rationale behind it.
Once you understand the dynamics and rationale, you will most likely discard it. Inevitably, it is not the projected future financial plan, but the maximum revenue and profit that you believe this business can achieve if all goes well.

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