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G&A benchmarking

G&A BenchmarkingWe are a hardware/software/services company with $160m annual revenues. I am looking for G&A spending as a % of revenue benchmark data not including special items or FAS123R expenses. We are at 12%. Any further breakdowns by function would be appreciated as well.

Answers

Mark Stokes
Title: CFO
Company: Private
(CFO, Private) |

The potential list is extremely long as you know. Are you including: HR & recruiting, IT, legal (corporate and IP), facilities, and more? Some companies have more needs under G&A than others. For example, not everyone manages a patent portfolio, but if you do, there go your costs. Same goes for recruiting; if you are hiring in a hurry, your recruiting costs go through the roof. A little more info would be helpful in answering.

Rick Rosenthal
Title: CFO
Company: Freeslate
(CFO, Freeslate) |

We include HR, IT, Facilities, Finance and legal. IT/Facilities get allocated out to the other functions as do recruiting and IP costs. I am looking for the net G&A expense which includes IT and facilities components attributable to G&A.

Topic Expert
John Kogan
Title: CEO/CFO
Company: Proformative, Inc.
(CEO/CFO, Proformative, Inc.) |

Check this one out: http://www.thefreelibrary.com/%22But+are+my+finance+costs+typical%3F%22+(benchmark+of+finance...-a021119262. Seems to have some reasonable data on the finance component alone and provides a good perspective on the benchmarking process and framing of the outcome.

Topic Expert
John Kogan
Title: CEO/CFO
Company: Proformative, Inc.
(CEO/CFO, Proformative, Inc.) |

Very tough coming up with solid benchmarking w/o spending a lot of money with an outside firm. Even then I have found there are so many subtle differences company-to-company that it is almost impossible to do apples to apples comparisons.

In the past i have tried to target one or two companies in my industry who seemed to run the tightest ship. Not the cheapest operation, but rather the most profitable on a consistent basis. Rather than getting averages which may or may not mean much, I would find the best and compare. To do that I would use publicly published reports and people in my network including accounting firms.

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