How Software M&A Now Prices In Customer Acquisition Cost Payback Periods

In this episode of Tech M&A with Fexingo, Lucas and Luna explore a due diligence metric that is quietly reshaping deal terms: the customer acquisition cost payback period. Drawing on current market data — including Oracle's 2.8% five-day gain and ServiceNow's 2.4% uptick — they examine how strategic buyers are scrutinizing how quickly a target company recovers its sales and marketing spend. Using a hypothetical but representative case of a B2B SaaS firm, they walk through why a payback period over 24 months can trigger earnout clauses or lower multiples, while sub-12-month payback commands premium valuations. The conversation also touches on how this metric interacts with customer concentration and retention risk, two factors the show has covered in prior episodes. A brief, sincere donation segment supports the show's ad-free model. #CustomerAcquisitionCost #PaybackPeriod #SoftwareM&A #DueDiligence #SaaS #Valuation #Earnouts #B2BSaaS #SalesEfficiency #UnitEconomics #LTVtoCAC #Oracle #ServiceNow #TechDeals #Business #Technology #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo