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Message: Lump-sum vs annual revenues

Lump-sum vs annual revenues

posted on Apr 02, 2009 03:50PM

None of us knows whether the current form of compesation is a strregic move or the decision of DM. DM, of course, would like their money in front. We all understand that much. Edig could have it either way. But the advantage, at least for the first few settlements, of the lump-sum compesation is that they improve the balance sheet of Edig immediately. This has been an issue with a few companies Edig attempted to partner with in the recent past. Although these firms agreed in principle to collaborate with Edig, they all changed their mind as soon as they studied its balance sheet. Clearly, they didn't think that our company will last.

Now the balance sheet looks stronger and Edig will have easier time to attract new partners.

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