Situation
- $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
Bespoke Solutions
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- Updated out of date Monthly Recurring Revenue (MRR) Dashboard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
Leading With Results
- 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