Executive Summary: Fintech companies are valued differently from traditional banks, lenders, and software businesses because their economics sit at the intersection of financial services and technology. Investors and buyers typically look at recurring revenue quality, growth consistency, regulatory risk, unit economics, and capital efficiency before applying revenue multiples, EBITDA multiples, or a discounted cash flow […]
Executive summary: A 409A valuation determines the fair market value of common stock in a private company so that stock options can be issued at an IRS-compliant strike price. For SaaS startups, this matters because recurring revenue, growth rates, churn, and investor financing rounds can move value quickly, yet the 409A standard is not the […]
Executive Summary. Net Revenue Retention (NRR) measures how much recurring revenue a software company keeps and expands from its existing customer base over a set period, typically one year. For SaaS businesses, NRR is one of the clearest signals of product stickiness, pricing power, and scalable growth. When NRR exceeds 100%, the company is not […]
Executive Summary: In SaaS valuation, churn is more than a retention statistic. It is a direct indicator of revenue durability, customer satisfaction, and how much future cash flow a buyer can underwrite with confidence. Gross churn measures recurring revenue lost from cancellations and contractions, while net churn also reflects expansion revenue from existing customers. Together, […]
Executive Summary: ARR multiples are one of the most important valuation tools for software-as-a-service businesses because they translate recurring revenue quality into a market-based estimate of enterprise value. Investors do not apply a single universal multiple. They weigh growth rate, net revenue retention (NRR), churn, customer concentration, gross margin, and market conditions to determine what […]
Software as a Service, or SaaS, businesses are valued differently from traditional operating companies because recurring revenue, customer retention, and scalable growth often matter more than current earnings alone. For Chicago business owners, understanding how buyers, investors, and lenders assess ARR, growth rate, net revenue retention, churn, and profitability is essential before a sale, recapitalization, […]
Los Angeles Business Valuations was engaged by the owner of a rapidly growing digital advertising agency founded in 2019. The agency sought a valuation for internal planning and preparation for a potential transaction with external investors. Despite being in business for less than five years, the agency had experienced exponential growth, expanding into major international […]
InteleK provided a swift and competitively priced valuation of 3 different special purpose vehicles (“SPV”) that only held cash in their balance sheets and needed a valuation to fill the IRS forms that would allow their owners to gain tax advantages. Business valuations can often be severely complex as they involve a wide array of […]
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 […]
Los Angeles Business Valuations was engaged by the owner of a pre-revenue e-commerce venture to value a 20% membership interest held by its incubator firm. The incubator of the e-commerce was converting to an LLC and required the assets to be valued for tax purposes. As of the Valuation Date, the venture was still in […]