Executive summary: Annual recurring revenue, or ARR, multiples are one of the primary ways investors value subscription based software businesses. The multiple is not applied in isolation. Buyers test ARR against growth, churn, net revenue retention, gross margin, customer concentration, and market comp data to determine whether a company deserves a premium or discount. For […]
Executive Summary: Valuing a SaaS business requires more than applying a traditional EBITDA multiple. Because software companies often reinvest heavily in growth and may report limited near-term earnings, buyers and investors focus on recurring revenue, ARR growth, net revenue retention, churn, and profitability signals that point to future cash flow. For Atlanta business owners, especially […]
InteleK was approached by an industrial equipment distributor seeking assistance with gift and estate planning strategy several months ago. The company, a proficient operator with robust margins and good revenue growth track, aimed to optimize its tax liability through the valuation of an equity interest in the business to be gifted since the owner approached […]