Action Academy | Millionaire Mentorship For Your Life & Business 8 Items To Look Out For When Analyzing A Small Business
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Sep 22, 2025 Discover essential insights for analyzing small businesses, from core metrics like revenue and EBITDA to identifying key performance indicators. Learn how to assess risks that can devalue a company, such as reliance on a single client or market. Explore strategies to reduce customer acquisition costs and enhance sales funnels. Dive into the importance of customer retention and time-to-value for improving overall business performance.
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Revenue And EBITDA Drive Initial Interest
- Buyers initially judge businesses by revenue and EBITDA, so those two metrics drive interest.
- These top-line and net numbers are the first signals that determine whether someone digs deeper.
Measure Growth And Retention
- Track revenue growth percent year over year to increase valuation multiples.
- Monitor yearly revenue retention to show recurring demand and reduce churn risk.
Prioritize LTV To CAC Ratio
- Calculate LTV-to-CAC and aim to maximize it by raising LTV and lowering CAC.
- Request that metric in diligence because it often isn't on the P&L and reveals marketing efficiency.