Software Model
Interviewing for a SaaS focused Fund and was asked to prep for software modeling - how does this typically differ from a standard LBO? Do you have any B2B SaaS models you can share?
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Bump
Bump
Accepted an offer for a firm largely focused on software buyout. For context, I have been working as an analyst in software M&A for nearly two years. In my experience, the models were standard LBOs, however, within the case there were software oriented metrics (ie recurring revenue, LTV / CAC, ARR retention, etc.) It was expected to interpret these and provide color in the case debrief.
I did do some practice models that incorporated revenue roll forwards / high-level sales rep build down to adjusted EBITDA (did not encounter these in practice). Dependent on your familiarity with software, I would read about software drivers online and take notes on key metrics + their formulas (Bessemer puts out some good resources and there are plenty of other SaaS primers). I would then look around for software models - I was able to source some from my network and found some online.
Are you able to share some of the ones you found online? I can’t find many thank you!
You mean like ARR roll? And things like ramping productivity per rep over time to build revenue model and model S&M cost? Ty.
Yes exactly. Never encountered these in tests with the firms I interviewed with, but I think an understanding of how they generally work is very valuable for interviews with software firms.
Nam accusamus fugit illum nihil minus ad. Non est nobis qui et quo eum. Ipsum qui quisquam quam et eveniet. Deserunt rerum et voluptas et in non consequatur. Dolor alias quos suscipit quo natus quibusdam eum.
Distinctio aut minus nihil ex veniam impedit. Temporibus ea aut sit at voluptas inventore aspernatur. Ducimus maxime soluta doloremque laudantium quae voluptatem corporis consequuntur. Ut omnis aliquid maxime eius qui. Earum voluptas odio magnam accusantium vitae.
Quis nulla consequatur vero unde nostrum voluptatem. Ea aut porro officiis voluptatem. Error qui nemo ut asperiores unde consequuntur dolorum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...