{"ok":true,"canonical_url":"https://dealroom.so/glossary/customer-acquisition-cost","api_url":"https://dealroom.so/api/public/glossary/customer-acquisition-cost","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"customer-acquisition-cost","term":"Customer acquisition cost","group":"Reading the business","definition":"The total cost of sales and marketing efforts required to acquire a new customer. Understanding this metric is crucial for evaluating the efficiency of the business's growth strategies and future profitability.","what_it_means":"Analyze the business's CAC during due diligence by reviewing marketing and sales expenses relative to new customer numbers. A high CAC relative to customer lifetime value can indicate unsustainable growth or inefficient marketing. You need to know if the business can profitably attract new customers post-acquisition.","url":"https://dealroom.so/glossary/customer-acquisition-cost","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[{"question":"How does high customer concentration in a target business affect SBA 7(a) acquisition loan approval?","url":"https://dealroom.so/sba-7a/questions/how-does-high-customer-concentration-in-a-target-business-affect-sba-7-a-acquisition-loan-"},{"question":"Can an SBA 7(a) loan cover the cost of a franchise transfer fee in an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-franchise-transfer-fee-in-an-acquisition"},{"question":"Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?","url":"https://dealroom.so/sba-7a/questions/can-closing-costs-such-as-legal-and-accounting-fees-be-included-in-the-total-project-cost-"},{"question":"Can an SBA 7(a) loan finance the cost of purchasing a commercial vehicle fleet as part of a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-cost-of-purchasing-a-commercial-vehicle-fleet-as-part-of-a"},{"question":"Can a 7(a) loan finance the purchase of intangible assets like customer lists or trade secrets in a business acquisition?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-finance-the-purchase-of-intangible-assets-like-customer-lists-or-trade-secr"},{"question":"Can a high customer concentration (e.g., one customer is 50% of revenue) jeopardize my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/can-a-high-customer-concentration-e-g-one-customer-is-50-of-revenue-jeopardize-my-sba-7-a-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Customer acquisition cost","url":"https://dealroom.so/glossary/customer-acquisition-cost","source_type":"DealRoom Data"}}