Factors Driving Valuations
Multiple
Age
Time
Trends
EBITDA Margin
Reviews
x5
>3 years
< 5 hrs/week
Growing
➢ 50%
➢ 1000
x3
<2 years
> 15 hrs/week
Flat
< 30%
< 500
Established applications, consistent growth, low operational cost, solutions for niche customer demands – these are the values driving strategic acquisitions and PE interest. Buyers will want to see the following:
• Solid user metrics, like high engagement and consistent session intervals • High retention and relatively low customer churn • Guaranteed in-house product development team
• Popularity, demonstrated by high review quality and growing volume • Strong revenue streams and stable cash flows • Niche solutions and overall uniqueness within the enterprise ecosystem
Source: FE Internal Analysis, Eqvista
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