{
  "case": "Kestrel Operations",
  "disclosure": "Entirely synthetic teaching case. No actual company, client or advisor results.",
  "company_arr_context": 24000000,
  "acquisition_gp_bridge": {
    "retained_revenue_effect_at_search_margin": 225000,
    "margin_effect_on_partner_retained_arr": 45000,
    "total_gap": 270000
  },
  "as_of": "2026-03-31",
  "currency": "USD",
  "coverage": "Three selected findings; targeted samples, not a census of all company revenue.",
  "billing_gap_annualized": 144000,
  "candidate_gap_annualized": 180000,
  "permitted_ramp_annualized": 36000,
  "renewal_above_guardrail": 40000.0,
  "matched_renewal_difference": 60000,
  "acquisition": {
    "Paid search": {
      "customers": 20,
      "spend": 300000,
      "starting_arr": 700000,
      "retained_arr": 600000,
      "retained_gross_profit_run_rate": 450000.0,
      "ratio": 1.5,
      "gross_revenue_retention": 0.8571428571428571,
      "average_starting_arr": 35000.0
    },
    "Partner": {
      "customers": 20,
      "spend": 300000,
      "starting_arr": 1000000,
      "retained_arr": 900000,
      "retained_gross_profit_run_rate": 720000.0,
      "ratio": 2.4,
      "gross_revenue_retention": 0.9,
      "average_starting_arr": 50000.0
    }
  },
  "scenarios": [
    {
      "label": "Lower realization",
      "realization": 0.75,
      "annualized_billing": 108000.0,
      "year_one_revenue": 81000.0,
      "year_one_gross_profit": 66420.0,
      "implementation": 24000,
      "annual_control_cost": 12000,
      "year_one_contribution": 30420.0,
      "audit_fee": 15000,
      "year_one_net_benefit": 15420.0,
      "subsequent_year_contribution": 76560.0
    },
    {
      "label": "Full realization",
      "realization": 1,
      "annualized_billing": 144000,
      "year_one_revenue": 108000.0,
      "year_one_gross_profit": 88560.0,
      "implementation": 24000,
      "annual_control_cost": 12000,
      "year_one_contribution": 52560.0,
      "audit_fee": 15000,
      "year_one_net_benefit": 37560.0,
      "subsequent_year_contribution": 106080.0
    }
  ],
  "scenario_assumptions": {
    "correction_start": "2026-04-01",
    "months_in_year_one": 9,
    "realization_range": [
      0.75,
      1
    ],
    "incremental_gross_margin": 0.82,
    "one_time_implementation_cost": 24000,
    "annual_incremental_control_cost": 12000,
    "audit_fee": 15000,
    "omitted_charges_not_already_recognized_as_revenue": "Planning assumption; Finance must validate. If already accrued, rebuild as a cash-collection case.",
    "tax_financing_working_capital_and_prior_period_arrears": "Excluded; revenue timing is not cash collection timing."
  }
}