Customer Attrition Rate

The percentage increase in a company's revenue over a specific period, typically measured year-over-year or quarter-over-quarter. Revenue growth rate is a fundamental measure of business expansion, market traction, and the effectiveness of go-to-market strategy.

The total net revenue a business expects to earn from a single customer over the entire duration of the relationship. LTV is driven by average revenue per user, gross margin, and retention rates, and is directly influenced by brand and relationship intangibles.

The rate used to convert a single-period earnings or cash flow figure into an indication of value, calculated as the discount rate minus the expected long-term sustainable growth rate. The capitalisation rate is the reciprocal of the capitalisation multiple and is used in the capitalisation of earnings method for businesses with stable, predictable income streams.

The rate at which a company integrates and derives value from acquired assets, particularly intangible assets such as technology, talent, and customer relationships following a merger or acquisition. A high absorption rate indicates effective post-deal value capture and is a key indicator of M&A success.

The theoretical rate of return on an investment with zero default risk, used as the foundation for building discount rates in valuation. In practice, the yield on government bonds of a maturity matching the expected cash flow duration serves as a proxy — typically US Treasury bonds for USD-denominated valuations or UK gilts for GBP-denominated analyses.

A standardised set of actuarial survivor curves developed at Iowa State University that describe the retirement patterns of industrial property. Iowa curves are classified by shape (L, S, R, O types) and average service life, providing a systematic framework for modelling asset mortality.

The percentage of customers (measured by count, not revenue) that remain active over a given period, regardless of changes in their contract value. Logo retention — also called customer retention rate or gross retention by customer count — isolates the frequency of customer loss from revenue expansion or contraction and is a key indicator of product-market fit and customer satisfaction.

The proportion of available capacity — whether labour hours, machine time, or service capacity — that is actually deployed in productive activity. Utilisation rate is a key productivity metric for professional services, manufacturing, and SaaS infrastructure, directly influencing revenue efficiency and operating margins.

LTV:CAC for Founders: The Ratio That Predicts Fundraising Success

LTV:CAC is the ratio investors use to determine whether your business model works. This guide explains how to calculate it correctly, the benchmarks by stage and business model, and why improving LTV:CAC signals intangible asset compounding.

How do you achieve and measure product-market fit?

Product-market fit is achieved when a product satisfies strong market demand — measured by retention rates, organic growth, the Sean Ellis survey (40%+ 'very disappointed'), and customers actively recommending the product.

What is an intangible asset valuation report?

An intangible asset valuation report provides a formal, documented assessment of the fair value of a company's intangible assets using recognised valuation methodologies.

What is obsolescence risk and why does it matter in technology valuation?

Obsolescence risk is the danger that technology becomes outdated or superseded, reducing its useful life and economic value — higher for proprietary tech, lower for platforms.