Buyers do not buy revenue — they buy cost per acquisition
What a strategic acquirer is actually computing when they look at your business.
Not filmed yet
The lesson is written out below. The video comes after.
Revenue is the number founders quote and it is not the number that sets the price.
A strategic buyer already has a product and a sales motion. What they are computing is what it costs them to get a customer today versus what it would cost them through you. If your channel delivers customers cheaper than theirs, you are worth a multiple of that difference, and your revenue is almost incidental to the maths.
Which tells you what to instrument, and when. Not at the point of the conversation — years before it, so the number has history behind it and is not something you assembled in a panic during diligence.
The one thing to keep
Instrument it before the conversation, not during it.
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