Aquizi Valuation Terminology

### Active Monthly Customers

What it means: The count of customers who transact with you during a representative month.

Why it matters: Customer volume complements revenue data and helps Aquizi benchmark conversion, retention, and market penetration.

How to report it: Count the unique customers billed or served in a typical month. For memberships, include active members; for services, use recurring clients.

### Capital Expenditure Plan

What it means: Planned investments in property, equipment, technology, or renovations over the next 12 months.

Why it matters: Capex affects cash flow forecasts and may unlock new capacity or efficiencies.

How to report it: Sum the expected spend on long-lived assets for the upcoming year, including signed quotes or approved projects.

### Cash Runway

What it means: The number of weeks you could operate at current spending levels before exhausting available cash.

Why it matters: Longer runway reduces liquidity risk and signals healthier working-capital management.

How to report it: Divide available cash by average weekly operating expenses. Include recurring payroll, rent, and vendor payments.

### Collection Cycle

What it means: The average number of days it takes to collect cash after issuing an invoice or completing a sale.

Why it matters: Longer collection windows tie up capital, increasing financing needs and risk.

How to report it: Use the average number of days outstanding (DSO) from your receivables data or accounting reports.

### Forward 12-Month Revenue Forecast

What it means: Your best estimate of the average revenue you expect to earn each month in the next year.

Why it matters: Forward-looking revenue contextualizes growth momentum and helps model valuation sensitivity.

How to report it: Base the forecast on signed demand, backlog, and credible sales projections. Use the same currency as your actuals.

### Full-Time Team Size

What it means: The headcount of individuals who work full time in the business, including founders drawing payroll.

Why it matters: Staffing levels influence capacity, fixed costs, and scalability.

How to report it: Count the number of full-time employees plus any owners who work a full-time schedule.

### Gross Margin

What it means: Gross margin measures how much of every dollar of revenue remains after subtracting the direct costs of delivering your product or service.

Why it matters: Healthy margins create room for operating expenses, reinvestment, and resilience under pricing pressure.

How to report it: Compute `(Revenue − Cost of Goods Sold) ÷ Revenue × 100`. Use the last full quarter's results for consistency.

### Monthly Marketing Spend

What it means: The typical amount you invest in paid advertising, promotions, referral incentives, and related marketing efforts each month.

Why it matters: Marketing spend signals growth investment, helps Aquizi benchmark acquisition efficiency, and influences near-term projections.

How to report it: Average the marketing-related expenses over the last quarter or year, excluding sales commissions already counted in payroll.

### Operational Risk Focus

What it means: The most significant operational dependency or exposure your team monitors regularly.

Why it matters: Identifying major risks helps Aquizi calibrate downside scenarios and confidence intervals.

How to report it: Describe the risk, why it matters, and how you mitigate it today.

### Owner Involvement

What it means: The amount of time owners invest directly in operations each week.

Why it matters: High owner dependence can suppress valuation multiples if the business cannot run independently.

How to report it: Estimate the combined weekly hours the ownership group spends managing the business.

### Peak Season Monthly Revenue

What it means: The average revenue your business records in the months where demand is strongest.

Why it matters: Understanding peak throughput shows how much capacity your team and operations can support when demand surges.

How to report it: Average the revenue from the months you consider your "busy" season. Use the same currency and accounting basis that you report elsewhere.

### Primary Customer Segments

What it means: A narrative description of the core groups of customers you target.

Why it matters: Segmentation insights help contextualize demand durability, pricing power, and competitive dynamics.

How to report it: Describe the top segments you focus on—geographies, industries, demographics, or buyer personas—and what unites them.

### Qualified Revenue Pipeline

What it means: The number of customers in advanced sales stages who are likely to convert in the near term.

Why it matters: A robust pipeline signals near-term growth and validates the forward revenue forecast.

How to report it: Count prospects with signed pilots, letters of intent, or verified waitlist commitments that indicate imminent revenue.

### Slow Season Monthly Revenue

What it means: The average revenue generated in off-peak months.

Why it matters: Aquizi uses this to understand volatility and seasonality, which influences confidence levels and scenario modeling.

How to report it: Take the average of revenue from your lowest-demand months in the most recent year.

### Supplier Concentration

What it means: The percentage of monthly operating expenses that goes to your biggest supplier, landlord, or critical vendor.

Why it matters: Heavy dependence on a single supplier elevates operational risk. Aquizi factors this into confidence adjustments.

How to report it: Divide the amount paid to your top vendor last month by total operating expenses for that month, then express it as a percentage.

### Supporting Documentation

What it means: Files or links that substantiate the answers you provide—financial statements, signed agreements, or policy documents.

Why it matters: Clear documentation speeds validation and can raise confidence in the final valuation.

How to report it: Upload relevant files or share secure links to folders where artifacts live.

### Technology or IP Moat

What it means: The proprietary technology, software, data, or intellectual property that sets you apart from competitors.

Why it matters: Durable moats can justify stronger valuation multiples and resilience.

How to report it: Summarize the protected assets, how they defend market share, and any formal protections (patents, trade secrets, exclusivity agreements).

### Trailing 12-Month Revenue (TTM)

What it means: The aggregate amount of revenue your business earned over the latest twelve-month window.

Why it matters: TTM revenue anchors Aquizi's baseline valuation model because it smooths out month-to-month swings and highlights the true earning power of the business.

How to report it: Sum the gross revenue booked in your accounting platform for the latest 12 complete months. Exclude sales taxes collected on behalf of governments.