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The SaaS Business Metrics Series: the Churn Equation
This article continues Fahrenheit's series exploring business metrics relevant to the Software as a Service (SaaS) industry. Each article briefly explores a key SaaS metric, including the definition, the applicable business contexts, and its use. The focus for this article is "the Churn Equation."
Definition: The Churn Equation presents the change in annual recurring revenue (ARR) over a period of…Read More -
Five Keys to a Successful M&A Outcome
Outside of marriage and the birth of a child, selling a business may be the most important life event an entrepreneur ever experiences, representing the financial reward from years of hard work, vision, and determination. And like anything that important, you want to do it only once, and you want to do it right.
As an investment banker who has…Read More -
The Real Truth Behind Business Valuation
I’ve met with many business owners from all walks of life, and whether they were a founder looking to finally realize the monetary reward from their life’s work or a private equity professional who was preparing to sell the twenty-first portfolio company of her career, they always posed the same question:
How much is my business worth?
An important question,…Read More -
Cast the Right Net to Catch the Best Talent
Finding great talent is a challenge. Another 177,000 new jobs were added to the U.S. economy last month and it appears there will be another bump soon in business activity given potential regulatory-policy easing and fiscal stimulus. All great news, but it will make finding your next key hire even more difficult.
There are many strategies that will help organizations…Read More -
8 Strategies That Determine Success or Failure in Mergers and Acquisitions
Acquiring another company and merging it with your business can be the most efficient way to grow. But many acquisitions don't pay off and it's often management issues — not market conditions — that get in the way.
Pre-Merger StrategiesHere are eight basic strategies that spell the difference between success and failure in mergers and acquisitions, no matter what the…Read More -
6 Questions That Will Make You A Better Coach
Want to be a Better Coach?
Of course you do! Most of us, when we are honest with ourselves, realize we could be better coaches. And employees agree – most executives don’t get high marks from direct reports. In fact, many executives find coaching mystifying and time consuming.
Marshall Goldsmith, one of the top coaches in the world, shares a…Read More -
The SaaS Business Metrics Series: CLTV
This article continues Fahrenheit’s series exploring business metrics relevant to the Software as a Service (SaaS) industry. Each article briefly explores a relevant SaaS key metric, including the definition, the applicable business contexts, and its use. The focus for this article is CLTV.
Definition: CLTV refers to Customer Lifetime Value. CLTV is the average estimated value of a typical customer…Read More -
Keeping Your Head Above Water in Today’s M&A Process
A growing trend among leading private equity groups is to provide supplemental resources to the management teams of their portfolio companies that are being prepped for sale. And sponsors are looking to financial consulting firms to serve this emerging need.
As sell-side M&A processes have evolved over recent years to become highly competitive, hyper-accelerated, and heavily data-reliant, the pressures…Read More -
The Price of Free for Startups
Founders of startups face countless obstacles every day. Many of those challenges, if not all of them, have to do with money and not having enough of it. Naturally, founders bootstrap and find cheap or free ways to build their products, gain customers, and keep their team engaged. Managing this process of making something out of nothing is what good…Read More -
Is Your Company a Talent Magnet?
In 2010 when we launched The Fahrenheit Group, acquiring talent was considerably different than it is today. The global economic crisis in 2008 and 2009 had created a large, available candidate pool, and the unemployment rate peaked around 10% in October of 2010. So, there were plenty of talented people available; the challenge was selecting the most capable and best…Read More -
Leadership Alignment: THE critical factor for closely held businesses
Over the past 6 months, I have witnessed several closely-held businesses struggle with misalignment among the partners and seniors leaders. Working to implement business strategy without alignment is like trying to drive a car without the steering wheel. Here are three recent factors that I've observed that can create misalignment:
Timing & Partner Age -- When do you want to…Read More -
“Small” Data, Big Insights–Finding Value in the Data you have at your Fingertips
You have probably heard a good bit of chatter about Big Data and how it is transforming the world of business. This is absolutely true for large businesses that fit a certain profile – businesses with high transaction volumes, those in industries with established data publication processes, those who have advanced data collection systems already in place, etc. However, for…Read More