Diligence of a hospitality company What is a hospitality company Generally in areas such as hotel, XX, and XX 2) Key performance indicators of an hospitality company A) Revenue KPIs - Growth in absolute revenue - Growth in Realisations : Revenue per room/hotel on a monthly/annual level - Growth in rooms booked  - Efficiency measured in terms of billed rooms as a % of available rooms  - Movement in absolute revenue/realisation in each Geography - Growth and sustenance of repeat customers  -  B) Margin KPIs - Growth in absolute margins as a % of revenue  - Movement in average margin per room/hotel on a monthly/annual level  - Movement in margin in each geography 3) Key potential issues in an Hospitality company -  Cash burn  :  -  ESOPs or non recorded costs :

 How to get into a Big4- When you are from Big4 firm ? Best time to get in Big4 firm is at articleship. But thats a coveted piece.  Now who couldn't get in what is the best course of action  First Dont think about money you are getting - Its your first job  Now, try to get into a big 4 audit division that is comparatively easier to get in as compared to deal advisory practice.  Now if your profile is weak for that too, try to get into audit profile of other top firms - XX, XX,XX, XX, XX, XX, XX, XX Journey for people from different background to enter deal advisory Articleship from Big4 : 0 years Articleship from top 10 firms : 0 - 1 year Articleship from mediocre firms : 1-3 years  Now those who are dummy - You must had great reasons to pursue that. You are beyond redemption. Even a rank wont help you reach at par with those who have done serious work. 

 1) What is an IT company ? In a deal scenario, an IT company is a software development or skilled manpower outsourcing company. For example infosys is an IT company - it develop software. But in deal scenario, hinduja global solutions, or genpact is also an IT company.  2) Key performance indicators of an IT company A) Revenue KPIs - Growth in absolute revenue - Growth in Realisations : Revenue per employee/headcount on a monthly/annual level - Growth in hours billed - Efficiency measured in terms of billed hours as a % of available hours  - Movement in absolute revenue/realisation in each Geography B) Margin KPIs - Growth in absolute margins as a % of revenue  - Movement in average margin per employee on a monthly/annual level  - Variation in margin per billed hour/available hour - Movement in margin in each geography 3) Key potential issues in an IT company -  Customer concentration : Many a times, these companies are highly dependent on very few custome...

1. How purchase consideration is computed in real world?   Purchase consideration is Enterprise Value (EV) net off by a) net debt and debt like items b) variation in actual working capital vis a vis target/normalised working capital c) other adjustment as agreed between investor and target.

1. What is financial due diligence (FDD) ? FDD is detailed investigation into accounting records and assessment of past financial performance of the company to help a potential investor in their acquisition.  In the large pyramid of a "deal" , we manage the financial side prior to acquisition. 2. Who all are involved in a deal  a) Investor - a PE firm or a corporate b) Investee - company being acquired  c) Facilitators - Investment Banks, Insurance companies and underwriters d) Advisors - Accounting advisors (FDD) , Legal, HR and commercial advisors   3. What do we do in financial due diligence  Our focus is on below two items a) Deep dive in historical financial performance of target company b) Identify items that may impact valuation of potential deal  4. What does a typical FDD assignment involves? A typical FDD assignment involves customised procedures suiting to requirements of clients, potential issues in a target/industry and deal process. ...