Author: Molly Soltesz

Calculating EBITDA for Software Companies

“How profitable is your software business?” It’s a simple question, but it’s not always easy to answer. Nevertheless, profitability is a critical measure of success that any business owner should understand and be able to communicate. Profitability, aka EBITDA, is even more important if you want to attract new investors

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Debt vs Equity: 3 Growth Financing Options for Software Companies

Early-stage software businesses may reach a point where they seek resources to help accelerate growth and execute business goals. There are several resources for growth capital: debt from a lender or financial institution, minority equity financing, or majority equity financing through a control transaction. Each method offers different benefits; finding

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SaaS M&A Snapshot: Target Market & Buyers

The public markets may have taken a beating, but behind the gloom-and-doom headlines, there was still plenty of good news for private SaaS companies in 2022. On the surface, things looked rough: the Dow Jones, S&P 500, and the NASDAQ all finished the year with significant losses, with tech stocks

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How To Properly Calculate Customer & ARR Churn

As a software operator, you know how difficult it is to achieve growth milestones while losing revenue from existing customers. Customer churn puts a strain on the sales team to outperform so that the company can maintain growth. This is why it is crucial for operators to closely track and

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How to Improve the LTV:CAC Ratio

LTV:CAC is considered one of the most critical metrics for valuing SaaS companies. Investors place a high focus on this metric, as it indicates good growth potential with limited marketing investment. Companies with lower LTV:CAC ratios indicate to investors that capital required to acquire new customers may not be utilized

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Useful Acronyms for Software Executives

Software executives are experts at operating their businesses, but when it comes to M&A and financial terminology, there is a hefty amount of jargon. Keeping on top of industry terms is helpful in discussions with advisors, buyers, or investors, especially when going through an M&A process. SEG created a cheat

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