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The Private Equity Perspective on Acquiring, Operating, and Selling Software Companies

In The Trenches

CHAPTER

The Tradeoff Between Revenue Growth and Profitability

The rule of 40 generally says if you're growing revenue at 40%, it's more acceptable that EBITDA is neutral because growth is expensive. Of the two variables, Jordan, do you put a higher weighting on one versus the other? It depends. In extreme framing, there are lots of investors in this world. I think this is a modern phenomenon. Throughout capitalism, making money was a good thing.

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