Before the multi-day radio silence I will leave you with a list of business jargon and acronyms (some southern slang) I've picked up through osmosis in the last twelve months, mostly from our Durham-native CFO Tim Oakley and the investors we have spoken to. Yes, the language can be a bit different here in the South. I truly hope you have the bandwidth to be able to leverage this color and create a positive ROI.
ARPU - average revenue per user
Bandwidth - The amount of things a person can get done during a period of time
Calibrate - to explain something to someone with the purpose of bringing them up to speed on a topic
Color - additional information on a topic
Comp Structure - Compensation Structure including salary and bonuses
Comps - Comparables revenue and EBITDA multiples
Flavor - (similar to color, but more specific), additional specific information on a topic
M&A Comps - Comparable revenue and EBITDA multiples of private companies in your industry
Ping - Check in or follow-up with someone
Public Comps - Comparable revenue and EBITDA multiples of public companies in your industry
Radio Silence - A period of time in which someone does not speak to you, either purposely or not.
Sales Coverage Plan - The plan you have for covering the sales you have in your financial projections. Ties in with your sales comp plan and your customer acquisition assumptions.
Sandbagging - submitting financial or sales projections that are lower than what you think is likely to occur
Valuation Distribution Quartile - The expected quartile (bottom 25%, lower middle 25%, top middle 25%, top 25%) you expect your valuation to be in as it relates to the M&A and public comps.
Zip Code - The general area you are looking for (as it relates to company valuation)
And here are some key terms that I did already know but tend to run into at least weekly these days:
Arbitrage - buying at a low cost in one location, selling for a higher cost in another location
CAC - Customer Acquisition Cost
Down-round: A round of funding which is raised at a lower price than a previous round. Generally triggers anti-dilution protection, which you want to be on a broad-based weighted average.
Due Diligence - The process of reviewing a company or investor prior to executing a transaction.
EBITDA - earnings before interest, taxes, depreciation, and amortization
GAAP - Generally Acceptable Accounting Principles
Leverage - Utilize
LTV - Lifetime Value (of a customer)
Osmosis - The process of information seeping in through exposure to it
ROAS - Return on Ad Spend
ROI - Return on Investment
TLA - Three-letter acronym
VAR - Value-added reseller
Verticals - Different industry niches that can be targeted.
And this is without getting into names of term sheet provisions. Feel free to submit others strange/unique business terms or acronyms in the comments.
Posted by ryanallis at May 26, 2007 01:00 AM