M&A Unpacked - The Critical Role of Gap Accounting in M&A Success

In this episode of M&A Unpacked, Mike is joined by Chris Bologna, COO and CFO of Xperteks. Chris brings a wealth of experience in finance and business management, with a background that includes working on Wall Street and at the renowned Blue Note jazz club in New York City. In this episode, Chris emphasizes the importance of GAAP accounting for MSPs and how it can significantly impact the valuation and success for both buyer and seller.

Chris shares his journey from financial planning to the MSP industry and how his deep understanding of accounting principles has driven Xperteks' growth. He highlights the critical need for MSPs to maintain their books according to Generally Accepted Accounting Principles (GAAP) to ensure fair valuation, seamless transactions, and to avoid potential pitfalls during audits.

- How transitioning Xperteks to GAAP accounting doubled their EBITDA
- The major differences between accrual and cash accounting
- Why revenue recognition and proper accounting periods are crucial in financial reporting
- The importance of thorough due diligence and understanding financial statements
- How improper accounting can slow down deals and increase auditing fees
- Tips for MSPs to transition into GAAP accounting smoothly

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