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

In The Trenches

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The Rule of 40 in Software Investing

The rule of 40 essentially says your revenue growth rate plus your EBITDA margin should equal roughly 40% or even higher. Jordan: How good of a predictor ultimately is the rule of 40 of the ultimate return of that investment? "It does matter, but it's not the end all be all," he said.

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