re : deal models thanks for the note - - that helps to put it into perspective .
unfortunately , since sally is out this week , i had not seen this note .
james has all of the marginal cost information , which can be used to work
from - i still believe that the approach we discussed in our meeting before
lunch today is the right one . we need to create some customer profiles which
include the number of transactions at each level and for each of the
potential services to calculate some potential cost base scenarios - - - from
which we can gross up to a potential revenue number .
rahil - - i would like to discuss the next steps , and who we put on point
( specifically ) for each task .
beth
- - - - - original message - - - - -
from : eichmann , marc
sent : friday , march 16 , 2001 12 : 19 pm
to : apollo , beth
cc : jafry , rahil ; scribner , james
subject : fw : deal models
here is the message i received from greg , which i just told you and rahil
about today .
i would really like to use rahil ' s expertise at eol to try to size the
potential market going forward . on the other side , i would appreciate getting
feedback about the marginal per transaction cost at different volume levels
as presented in the document we discussed this morning . i will be available
to help in any way needed .
thanks in advance for your help
marc
- - - - - original message - - - - -
from : piper , greg
sent : thursday , march 15 , 2001 2 : 59 pm
to : eichmann , marc
cc : zipper , andy ; gros , thomas d . ; beck , sally ; raghavan , suresh ; bartlett ,
jeff ; shelby , rex
subject : deal models
we need to finalize the 4 models that have a high , low and expected case for
our businesses . they are commoditylogic , dealbench , transactionhub and
mid / back office . dealbench should be built as an asp as discussed ,
commoditylogic as an asp , transactionhub as we have discussed and back office
as you are working with sally .
we first need to agree on all the assumptions for revenue that lead to each
case suggested above for each business . we then need to agree on 5 to 10
years of expenses so we can reach an operating margin we agree upon . we then
finally need to look at them and see what capital investment might be needed
to go in to each one and then finally build a pretax income statement and
pretax cash flow statement for each business .
the goal is to determine , within a range , the present value of each business ,
based on certain assumptions , and then to determine what they are worth as a
company .
i know we are part way there on all of these initiatives , but i want this all
finished as follows :
transactionhub - friday afternoon the 16 th .
commoditylogic - tuesday afternoon the 19 th
dealbench - wednesday afternoon the 17 th
mid / back office - friday the 23 rd
remember , we are trying to get a range that is approximately right that we
can all believe .
your thoughts ?
gp
re : deal models
thanks for the note - - that helps to put it into perspective .
unfortunately , since sally is out this week , i had not seen this note .
james has all of the marginal cost information , which can be used to work
from - i still believe that the approach we discussed in our meeting before
lunch today is the right one . we need to create some customer profiles which
include the number of transactions at each level and for each of the
potential services to calculate some potential cost base scenarios - - - from
which we can gross up to a potential revenue number .
rahil - - i would like to discuss the next steps , and who we put on point
( specifically ) for each task .
beth
- - - - - original message - - - - -
from : eichmann , marc
sent : friday , march 16 , 2001 12 : 19 pm
to : apollo , beth
cc : jafry , rahil ; scribner , james
subject : fw : deal models
here is the message i received from greg , which i just told you and rahil
about today .
i would really like to use rahil ' s expertise at eol to try to size the
potential market going forward . on the other side , i would appreciate getting
feedback about the marginal per transaction cost at different volume levels
as presented in the document we discussed this morning . i will be available
to help in any way needed .
thanks in advance for your help
marc
- - - - - original message - - - - -
from : piper , greg
sent : thursday , march 15 , 2001 2 : 59 pm
to : eichmann , marc
cc : zipper , andy ; gros , thomas d . ; beck , sally ; raghavan , suresh ; bartlett ,
jeff ; shelby , rex
subject : deal models
we need to finalize the 4 models that have a high , low and expected case for
our businesses . they are commoditylogic , dealbench , transactionhub and
mid / back office . dealbench should be built as an asp as discussed ,
commoditylogic as an asp , transactionhub as we have discussed and back office
as you are working with sally .
we first need to agree on all the assumptions for revenue that lead to each
case suggested above for each business . we then need to agree on 5 to 10
years of expenses so we can reach an operating margin we agree upon . we then
finally need to look at them and see what capital investment might be needed
to go in to each one and then finally build a pretax income statement and
pretax cash flow statement for each business .
the goal is to determine , within a range , the present value of each business ,
based on certain assumptions , and then to determine what they are worth as a
company .
i know we are part way there on all of these initiatives , but i want this all
finished as follows :
transactionhub - friday afternoon the 16 th .
commoditylogic - tuesday afternoon the 19 th
dealbench - wednesday afternoon the 17 th
mid / back office - friday the 23 rd
remember , we are trying to get a range that is approximately right that we
can all believe .
your thoughts ?
gp