Reduce from Purchase price or cash to buyer at closing? Business sold pre sold packages and services are yet to be rendered. Revenue would be recognize over 12 months depending on when the clients visit for their treatments.
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
The deferred revenues include profit margins per treatment and the clients are not likely required to pay additional amounts for said treatments at the time of service. Depending on the size of the deferred revenues, your practice may be busy, but not cash flow positive, if you reduce the transaction price by the deferred revenues amount. Generally, it would be beneficial to request a transfer of client pre-paids at closing to match realized revenues to specific performance at the time of treatment.