1.5 min read. In the ever-evolving world of Software-as-a-Service (SaaS) businesses, understanding and benchmarking retention metrics is crucial for success. SaaS Capital recently conducted an in-depth analysis of over 1,500 B2B SaaS companies to provide valuable insights into retention metrics. This blog post highlights the key findings from their report and sheds light on the changing landscape of SaaS retention. 1. The Flipped Relationship: ACV, GRR, and NRR: One of the significant takeaways from the report is the reversal in the relationship between Annual Contract Value (ACV), Gross Revenue Retention (GRR), and Net Revenue Retention (NRR) since 2020. Previously, GRR […]
Aspen Valuations
6 posts
1 min read. Our principal, Yen Dang, is participating in a webinar on Wednesday March 22, 2023 11am MST with Village Wellth. We believe you will find the topic and discussion valuable as we unpack valuations in this changing economy with industry experts. We hope to see you there!
1 min read. 1. Provide a clear understanding of your business’s market value. With a business valuation, you can get an accurate and comprehensive idea of your company’s current value and what are the key drivers (both qualitative and quantitative) of this value. This will help provide actionable insights to drive future success. 2. Create effective strategies to increase business value. A business valuation report considers all key factors that influence the value of your business. Business owners can use this insight to create a strategy that focuses on high leverage activities that drive growth and increase business value. 3. […]
3 min read. Before engaging a valuation firm to carry out a business valuation, there are several important issues a business owner needs to consider to ensure they’ll receive a value opinion that is most relevant and accurate for their case. 1. Determine the purpose of your business valuation. This is important as it dictates which of several different “standards of value” are appropriate. Fair Market Value (FMV) is the most common approach. FMV is determined based on several important assumptions including “a highest price” transacted by a “willing buyer and willing seller” with access to the same information about […]
1 min read. What is The True Income of the Company? In general terms, in most business valuations the value of a company is derived at by discounting or capitalizing the ‘true’ income or stream of cash flows that a potential buyer of the business will likely receive. For most privately-held companies, the actual income reported does not usually represent it’s ‘true’ future income. We have seen it to be widely different (higher or lower) than the actual income reported for the companies we valued. In some cases, a company that incurs losses or breaks even most years may turn […]
1 min read. Any private company (including non-U.S. companies) that issues equity-based compensation to U.S. employees (and advisors) would need to comply with Section 409A of the U.S. Internal Revenue Code, which essentially requires, among other things, that stock options and other equity incentives issues are not priced below fair market value when issued. How often do companies need to update their 409A valuation? A new 409A valuation must be performed whenever there is a material corporate event, including: – Issuing employee stock options or shares for the first time– Raising a round of funding– Turnover of significant employees in […]