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7min chapter
The Constellation Software Playbook for Acquiring and Growing Software Companies
In The Trenches
Software Development Costs and Company Valuation
Exploring the impact of capitalizing software development costs on company valuation, focusing on R&D cash spent annually as a better gauge of future cash generation. Emphasizing the normalization of costs, the chapter highlights the importance of understanding R&D spend and the differences between vertical and horizontal market software companies.
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