SaaS M&A Deferred Revenue Haircut Solver

Underwrite ASC 805 business combination purchase accounting rules, calculating fair value write-downs on target company unearned deferred revenue balances and adjusting post-close EBITDA.

Target Deferred Revenue & Fulfill Cost

Target Company Book Deferred Revenue Balance ($ USD)

Cost to Fulfill Remaining Obligations (% - e.g. 42%)

Normal Marketplace Profit Margin (% - e.g. 15%)

Haircut Write-Down & Fair Value

Total GAAP Deferred Revenue Fair Value Haircut

$1,376,000 Write-Down (-43.0%)

Post-Closing Fair Value Recognized on Balance Sheet

$1,824,000 Post-Close Balance

Post-Closing Year 1 Revenue & EBITDA Impact

First-Year Reported Revenue Suppressed by $1.38M