Develop and Automate Annual Recurring Revenue for $100M Software-As-A-Service Company

"Supported the unsolicited bid to acquire a company unprepared to undergo said transaction as it was halfway through its intended investment horizon"

$100M top-line, $30M Earnings before interest, taxes, depreciation, and amortization (EBITDA) SaaS company focused on enterprise data management lacked financial and operational Key Performance Indicators
Company had been purchased three years prior at ~13x EBITDA
COVID-19 pandemic had notable impact on growth leading Private Equity Sponsor to believe investment horizon had been extended beyond initial three to five year outlook
The Financial Planning & Analysis (FP&A) leader exited the company and unsolicited offer from an enterprise software company focused on ‘Office of the CFO’ solutions came soon after
Existing CFO was an interim role
SLKone was hired to immediately assume all FP&A responsibilities; prepare the financial department for transaction, own the completion of all financial diligence requests, and provide surge resourcing to handle elevated workload caused by diligence

Prior to transaction:

SLKone rapidly assessed, organized, and cleaned up existing analysis and reports
Worked directly with PE Sponsor to facilitate and fulfill all diligence requests timely
Updated out of date Monthly Recurring Revenue (MRR) Dashboard
- Recurring revenue was primary factor in determining final EBITDA multiple
- Developed capability to correct mistakes in the existing model that were derived from ‘bad data’ in the underlying systems
Developed key analysis that would support the final ‘working capital’ peg

Post Transaction:

Supported the transition of MRR Dashboarding capability to acquisition company
- Ran the update process for four months
- Trained newly hired ‘revenue specialist’ in acquisition company FP&A group to utilize PowerBI to update their existing MRR Dashboard capability

Successful transaction at 16.6x EBITDA multiple to a strategic unsolicited bidder, up from ~13x three years prior
Transitioned MRR Dashboard - Developed ‘How to’ guide to support the transition - Trained acquiring group’s staff to utilize PowerBI and Excel based Power Query
Post-transaction support of financial departments (Accounting and FP&A)
- Support integration of acquired company’s Enterprise Resource Planning (ERP) data into acquiring company’s ERP system
- Transition operational reporting that supports the active management of the acquired company

Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone