Company X Case Study

Company X powers job boards for publishers (Techcrunch, The Stanford Daily, Slashdot, etc). On Techcrunch for example, scroll to the bottom to the Crunchboard and it takes you to the following site http://www.crunchboard.com/jobs/.

Company X Business Overview

• Each month, 250 companies post jobs on Company Xs publisher network (Techcrunch for example) at an average of $150 per post. When companies post on the publisher sites, the publishers keep 75% of that revenue (COGS) and Company X keeps 25% (revenue).
• Each month, 50 companies post on Company Xs website at an average of $350 per post. These jobs are distributed to all the publishers. Company X keeps 75% of the revenue and pays out the partner 25% (COGS).
• Company Xs overhead is $3,500 per month

Questions:

1. Create a simple monthly and annual income statement for Company Xs business in Microsoft Excel or other spreadsheet software.
2. Do you think Company X would be a good company to acquire? What, if any, other information would you want to make an informed decision?