Valuations & Acquisitions: Why Deal Due Diligence Is Worth a Try

Next, run this result through a 12- to 36-month lifetime value cash flow model and see if it makes economic sense to invest this much to secure a new customer. Then run the same analysis on each primary channel you use for prospecting.

These models (which your marketing people should run every year, by primary season) will help you:
3 set your annual sales and profit forecast;
3 set circulation levels for prospects and customers in each seasonal mail plan;
3 maximize profits in your yearly circ plan; and
3 when the timing is right, be positioned to raise capital, sell equity or exit.