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Software Buyout Lingo Explained

Private Equity Funcast

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The Importance of Revenue Marks

Ben: I get the snowballs are growing, but I still want it to go up. I wanted to buy gravity. There aren't a lot of things that get bigger on the way up. So ARR is probably the one metric to judge kind of the scale and velocity of the business that we would focus on. And if you're a high growth business, the current run rate is a heck of a lot more relevant than what trailing or prior your gap revenue was. If there's big discrepancies, I think that can lead to where you focus your efforts just to unpack how people are calculating ARR.

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