Customer and Sales Due Diligence

CAC

Short for customer acquisition cost. Why it matters: This abbreviation appears often in deal conversations and documents, so owners should connect it back to Customer Acquisition Cost before agreeing to anything.

Related terms

Customer Acquisition Cost

How much it costs to win a new customer. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Acquisition

When one person or company buys another business. Why it matters: In a sale process, the buyer is acquiring either the company itself or selected assets, and that choice affects taxes, liabilities, contracts, and what happens after closing.

More from Customer and Sales Due Diligence

Backlog CLV Conversion Rate Customer Acquisition Cost Customer Churn Customer Concentration Customer Lifetime Value Lead Net Revenue Retention NRR One-Time Revenue Pipeline

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