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Value of Customer Lifetime Value:Customer Acquisition Cost Ratio

Jun 26 2019

This is a guest article from Founders Advisors Vice President Brad Johnson. We hope you enjoy it! LTV:CAC – What is it? Lifetime Value : Customer Acquisition Cost (LTV:CAC) is the measure of return a SaaS business is generating on its customer acquisition spend. This can be thought of as the ROIC (return on invested […]

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How Enterprise Value Translates to Net Transaction Proceeds

Jul 01 2021

Guest article by  Billy Pritchard, vice president at Founders Advisors. In the world of private capital transactions, deal values and statistics are discussed primarily using the Enterprise Value metric. The term “Enterprise Value” is often defined as the total value ascribed to the business, inclusive of both the company’s equity and the debt used to […]

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How Important is Growth to SaaS Valuation?

Jul 09 2019

This is a guest article from William Short of Founders Advisors. We hope you enjoy it! There have been several studies of the public markets and valuation drivers, all of which typically show a strong correlation between EV/Revenue and revenue growth.  In its 2017 Software Outlook, Credit Suisse finds that revenue growth has the strongest […]

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