Executive Summary. Churn rate is one of the clearest indicators of whether a SaaS business is compounding value or quietly eroding it. Gross churn measures the revenue lost from cancellations and downgrades, while net churn accounts for expansion revenue from existing customers. Buyers and valuation professionals look closely at both because they directly affect lifetime […]
Executive Summary: ARR multiples are one of the most widely used ways to value subscription software companies because they translate recurring revenue into a market-based estimate of enterprise value. For Los Angeles business owners, understanding how investors calculate and adjust ARR multiples is essential when planning a capital raise, an acquisition, a partner buyout, or […]
Software as a Service, or SaaS, businesses are valued differently from traditional companies because revenue is recurring, growth can compound quickly, and customer retention often matters more than near-term earnings. For Los Angeles founders, investors, and advisors, understanding SaaS valuation is essential because buyers rarely rely on EBITDA alone. Instead, they typically focus on annual […]