The Profit and Loss (P&L) Statement is a universal fixture of business finance, but it takes on special significance for companies in the Software industry. With their recurring revenue models…
Gross Margin is a hot topic among software PE investors and Strategic Buyers. In fact, it’s one of the main factors they prioritize when valuing a company. For Software Executives,…
In today's economic climate, retention is everything: Software companies with Net Revenue Retention (NRR) rates above 120% are trading at a remarkable 63% premium over the market median. Why? Because…
While Cost of Goods Sold (COGS) seems straightforward on its surface, Software Executives often miscalculate this important accounting formula. COGS is a key metric Private Equity Investors and Strategic Buyers…
Now more than ever, private equity firms and strategic buyers prioritize profitability when analyzing potential acquisition targets. They want to know that your company can make money, operate efficiently, and…
How can you scale sustainably when growth goals are hindered by customer churn? For software executives focused on M&A and growth, managing churn is more than just a KPI; it's…
Running a thriving software business requires, among other things, two foundational capabilities. First, you must find ways to acquire new customers without overspending on sales and marketing. Second, you need…
If you’re selling your software business, it’s essential to understand key financial variables that may impact the process. One such metric is net working capital (NWC). However, when it comes…
The "Rule of 40" in SaaS valuations is a rule of thumb used to assess a company's financial health and growth potential. It suggests that the sum of a company's…
In previous posts, we discussed the importance of understanding ARR and how to properly calculate customer and ARR churn. In this post, we’ll explain how viewing these metrics in conjunction…
