Startup Funding Espresso Financials and Key Metrics for M&A
Financials and Key Metrics for M&A Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business, the buyer will look for key financial metrics. Here are some key metrics to include in your pitch: Total revenue -- revenue before discounts, returns, and adjustments. This shows top-line sales for the company. Sales in units -- the number of units sold over a period of time. This helps the buyer in estimating forecasts. Cost of customer acquisition -- the cost to acquire new customers. This shows how much is required to gain a new account. Gross margin -- revenues minus cost of goods sold yields gross profit.\xa0\xa0 Gross margin is the gross profit divided by revenues and shows how much revenue is left over for sales and marketing expenses. Growth rate -- percent increase in sales month over month, or year over year. This shows how fast your startup is growing\xa0 Burn rate -- the amount of cash spent over and above the incoming revenue. This shows how much cash is required to maintain the current business level. Fixed costs -- the costs that are fixed regardless of the amount of units sold. This shows the overhead required to run the business. EBITDA -- the revenue minus the cost of goods sold and sales and marketing costs. This shows the amount of revenue available to reinvest in the business. Acquirers will want to see these numbers to consider buying your company. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .