CEO @ Passetto | Chairman @ Refine Labs | GTM Strategy & Analytics for High-Growth B2B Companies

1w Edited

This data is INSANE. And proves the “Growth at All Costs” era is over. Quite literally billions of dollars in enterprise value driven by how cost-efficient your go-to-market (GTM) is. Let’s check it out 👇 First - yes, Growth matters. And has one of the largest impacts on TTM Revenue Multiple and Enterprise Value. But now Efficiency also matters - how much it costs to grow. Which is most heavily impacted by the ROI of the entire go-to-market GTM investment (40-60% of total revenue invested in GTM). __ So here’s the metric you need to monitor: GTM EFFICIENCY % GTM Efficiency % = [TTM Total GTM Expenses] / [TTM Total Net New ARR] * 100% Put simply, GTM Efficiency % means how much did you spend on GTM to generate $1 in Net New ARR. (The smaller, the better) Net New ARR = New Logo + Expansion - Contraction - Churn Total GTM Expenses = Sales, Marketing, SDRs, Operations, Leadership, Admin, Training, Technology, Data, etc. But this number has been getting a lot bigger since 2021 in both the public markets and private markets. And it's decimating enterprise value in the process. __ So here’s the thing you need to know: SaaS companies with better GTM Efficiency are valued significantly higher (as a multiple of TTM Revenue). GTM Efficiency > 250% -> 3.6X median revenue multiple GTM Efficiency 175% - 250% -> 6.4X median revenue multiple GTM Efficiency < 175% -> 10X median revenue multiple Wow, companies with efficient GTM are valued 2X-3X more than SaaS companies with demonstrably inefficient GTM. And that makes a difference of hundreds of millions or billions of dollars to shareholders. CEOs, CFOs, and Investors take note! __ The “Growth at All Costs” era is over. Drive hundreds of millions or billions of dollars in increased enterprise value in 2025 by hitting your growth target while also maintaining target GTM Efficiency < 175%. #finance #b2b #gtm #gotomarket #sales *Shout out to David Spitz and BenchSights for this breakthrough data and research. Reference data is attached in the comments.