Many companies don’t really understand what a cost of goods sold is and don’t calculate it correctly. I’m going to tell you why that’s dangerous. I get endless writing fodder from my clients. I am currently working with a company that is acquiring another company. My partner and I were retained to calculate a valuation and propose an appropriate deal structure. Easy peasy. Right? Wrong. The target company is a manufacturing company and their cost of goods sold (COGS) was wrong in six ways from Sunday leading to an inaccurate gross profit margins. It is difficult to value a company…...
Why Your Cost of Goods Sold is So Very Important
4 min read
Comments are closed.