Theta Equity Partners

CBCV Solutions for Corporations

What it is

Most accurate diagnostic of customer-base value and unit economics

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When to use

For an initial diagnostic of customer value and its dynamics, customer acquisition cost, marketing ROI, and to gain a deeper insight into value improvement opportunities

Managing customer value

Identify strengths and weaknesses of your company’s customer-base value and unit economics, and find opportunities for improvement

• Evaluate health of your customer base – CLV and its trends, CLV to CAC ratio dynamics, CLV by customer segment, product, acquisition channel, etc.

• Identify customer value improvement opportunities, e.g., by reallocating marketing budget towards more effective customer acquisition channels and better customer retention/development tactics

Raising capital

Get better terms by demonstrating the health of your customer base and unit economics to potential investors

• Get an independent third-party evaluation of your company's customer value and unit economics

• Communicate health of your customer base and unit economics to investors by disclosing key customer metrics that indicate future performance

Insights you will get

Summary of strengths and weaknesses of your company from customer value lens along with key customer value insights:

• Highly accurate predictive CLV and its trend over time, including a breakdown by customer segment, behavior, product, acquisition channel, etc.

• Distribution of CLV across customers to better understand overall customer acquisition and development potential

• CLV to customer acquisition cost (CAC) ratio to estimate company’s marketing ROI and identify opportunities to reallocate marketing budget to improve efficiency

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Management's and analyst's interactive dashboard to drill down into key segments of the customer base and get a deeper insight into company's customer value

What it is

Holistic CLV-based evaluation, analysis of growth prospects, and customer + financial forecast for a company

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When to use

For an accurate forward-looking view of the company, including unit economics, future customer base size, revenue forecasts, etc.

Managing growth and customer value

Forecast company growth and increase its valuation by focusing on customer value

• Accurately forecast company’s future size of customer base, revenues, profits, etc., based on detailed predictions of customer behavior (acquisition, retention, repeat purchasing, spend)

• Evaluate health of the customer base – CLV and its trends, CLV to CAC ratio dynamics, CLV by customer segment, product, acquisition channel, etc.

• Identify customer value improvement opportunities, e.g., by reallocating marketing budget towards more effective customer acquisition channels and better customer retention/development tactics

Raising capital

Get better terms by demonstrating company growth prospects, health of the customer base and unit economics to potential investors

• Get an independent third-party evaluation of company's long-term growth prospects, customer value, and unit economics

• Communicate health of the customer base and growth prospects to investors by disclosing key forward-looking customer metrics that interest them

Insights you will get

Summary of strengths and weaknesses of the company from customer value lens (all insights from CBCV Express Analysis), plus:

• Forecasts of future customer acquisitions, retention, and spend

• Forecasts of future customer base size

• Forecasts of revenues generated from existing and future customers

• Sensitivity analysis by modeling various scenarios

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Management's and analyst's interactive dashboard to drill down into key segments of the customer base and get a deeper insight into company's growth prospects and customer value

What it is

Fair valuation of the company's equity based on predicting future behavior of its customers

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When to use

To demonstrate full value of the company, business unit or brand to potential/existing investors or acquirers

• Private companies: when raising capital, going for an IPO, or selling the company 

• Public companies: to communicate with external investors, send a strong signal to the market or understand whether you’re over/undervalued by the market

Private companies

Don’t leave money on the table when raising capital, going IPO, or selling the company. Obtain a data-based fair valuation showing full value of the company to investors or buyers

• Maximize price when selling the company

• Get better financing terms when raising debt

• Minimize existing shareholder dilution and maximize raised capital when going IPO or raising equity

Public companies

Send a strong signal to the market if it undervalues the company 

• Have a data-based view of the full company value to show potential buyers

• Account for sources of company value usually ignored by traditional valuation methods (for example, customer heterogeneity)

Insights you will get

Company valuation report and the CBCV valuation model based on predicting future customer behavior, including:

• Forecasts of future customer acquisition, retention, customer spend, etc.

• Forecasts of future revenues, profits, free cash flows, working capital, capex, and other components of valuation

• Sensitivity analysis by modeling various scenarios