Three page presentation to highlight financial health/insights of target Series B company
Merry Xmas all, I am working on a case study for a VC fund that specializes in industrial SaaS that is evaluating a industrial SaaS company with $20M investment in a $100M Series B round with a premoney valuation of $350M.
I need to complete the financial forecast for this company and prepare a 3 page presentation highlighting the financial health of this business and other insights.
I was given a 8 quarters info of revenue segments, this company has recurring revenue, hardware revenue and professional services revenue - I have to give assumptions for: each quarter
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S&M as % of revenue
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R&D as % of revenue
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G&A as % of revenue
And also balance sheet assumptions:
AR days
Inventory days
AP Days
I want to ask:
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Would it be better to come up with an assumption based on industrial benchmarks (currently I am using median S&M/R&D/G&A % of revenue from companies of $20M-$50M ARR, which is where this company is currently at) or any methods would be better?
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The balance sheet assumptions are the ones that I am having tough time coming up with. I am also trying to look for benchmarks but Pitchbooks and CapIQ searches doesn't show such details in balance sheet of the companies
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To highlight the financial health of company, what type of chart should I show for: growth, margin profile and cash inflows/outflows over the next 8 quarters, and what type of insights would VC fund be interested in (currently I am thinking SaaS magic number and Rule of 40, based on the information that is available in the case study)
Thanks all!
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