Software Equity Group’s Vice President, Kris Beible, recently talked with Ray Rike, CEO and Founder of RevOps Squared, about the importance of Net Dollar Retention on SaaS company enterprise value, both for public and private companies.
Based upon insights gained from over 100 private B2B SaaS company acquisitions, Kris shares how Net Dollar Retention & Gross Dollar Retention have become the top KPI that acquirers ask about in the early stage of private SaaS company acquisition due diligence.
Other topics discussed include how private SaaS company acquirers have increased the priority of Gross and Net Dollar Retention rates since the on-set of COVID-19.
They also discuss why companies need to develop a cohort-based understanding of customer acquisition costs and customer retention rates PRIOR to starting a strategic financing initiative. In fact, a cohort-based analysis should be applied to operational decisions 12-24 months prior to starting any investment process.