Middle Market Deals and how to buy, sell and raise capital from $5 to $500 million

CAGR:  Compound Annual Growth Rate.

I'll skip the mathematical calculation for CAGR and refer you to the Investopedia definition.

More importantly, however, let me describe what it means and how it is used.  Although not mathematically accurate, it is not, I don't believe, incorrect to think of the compound annual growth rate as a form of average.  So, an investment with a CAGR of 20% over five years returned an effective average of 20% per year.

Where the measure is most frequently used in my business experience is to describe a company's growth rate.  So a company that has grown from $10 million per year of revenue to $100 million has realized a CAGR of approximately 58.5%, regardless of what the revenue was in the intervening years.