Flexible Terms Available: Incl. 100% contingent fees on deals*
M&A

Supporting the Private Equity sale of a c£30m SaaS business

M&A

Supporting the Private Equity sale of a c£30m SaaS business

September 8, 2023

Private equity firms are increasingly looking to invest in and exit from SaaS businesses to capitalise on the attractive recurring revenue streams and scalability potential offered. However, a successful exit of a SaaS business requires a strong and reliable source of historic and forecast FP&A data that underpin the valuation and potential avenues for value creation. In practice CFOs must work in coordination with the business, investment banks and financial / commercial due diligence teams to ensure a coherent and robust data room is acheived and supported throughout the sale process.

The Credential

Tunneys worked with the CFO of a PE backed SaaS company (c£30m) in coordinating financial modelling, data and FP&A throughout financial and commercial due diligence and investment banking processes. Ensuring the validity, accuracy and consistency of assumptions and financial forecasts provided through the data room and ongoing investor Q&A responses, Tunneys supported the deal from origination to completion.

How We Helped

Prior to engaging Tunneys, the private equity owner of HotelSaaSCo* had engaged a set of FDD, CDD and investment banking advisors to take the company to market and drive a full exit sale. Budgetting & Data Modelling within the company needed to be replaced while maintaining consistency around the data, assumptions and forecasts taken to market.

Tunneys reviewed provided new FP&A and data analysis assets and new iterations for internal financial modelling for budgetting while reviewing and ensuring consistency in the transaction modelling taken to market by investment banking advisors. Tunneys also supported ongoing adhoc investor Q&A throughout the sale process.

Value Delivered

Review investment bank modelling to ensure numbers released to the market are accurate and consistent with the internal modelling and FP&A of the business and driving modelling best practice standards;

Reshaping of how SaaS revenues are modelled and forecast to ensure a fit for purpose approach bespoke to the unique drivers and nature of the business;

Extending of FP&A within the company to providing greater clarity on the impact of various teams and activities on the broader P&L and cashflow; &

A robust best in class dynamic strategic model for the C-suite and new investors to drive, manage and monitor the 5 year growth plan of the business with facility for activity based costing and product/service profitability differentiation.

* all client names have been kept confidential.

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