M&A Fundamentals
This financial metric is commonly used to value SaaS companies in M&A deals.
What is ARR (Annual Recurring Revenue
The primary valuation method that calculates the present value of expected future cash flows.
What is discounted cash flow (DCF)
When a buyer later sells an acquired company due to lack of strategic fit.
What is a divestiture
The amount of days an account is protected after we create it.
What is 275 days
This company is the largest Core Banking player in Europe
What is Temenos
These are the four scenario models we create.
What is Winner, Modest Winner, Walking Wounded, Wipeout
This valuation metric is commonly used to compare deal multiples in M&A transactions.
What is EV/EBITDA
A company acquiring another at a price higher than its standalone value, often referred to as this.
What is a control premium
The number of hours we have to put notes into salesforce after a meeting has happened.
What is 72 hours
Vista owns this large core banking player and P&C InsureTech
What is Finastra and what is Duck Creek
This financial metric, often analyzed in CSI, measures the amount of capital a company generates with the money shareholders have invested
What is return on Invested Capital (ROIC)?
This financial instrument is often used by private equity firms to help finance M&A deals.
What is leverage
This type of takeover occurs when a company attempts to acquire another without board approval.
What is a hostile takeover
The information a meaningful dialogue must contain
What is M&A qualifying info AND either business OR personal Insight
This metric, often used in SaaS M&A, measures how much recurring revenue a company retains over time.
What is net revenue retention (NRR
This valuation method compares a target company to similar publicly traded companies.
What are comparable company analysis (comps)
A failed M&A deal can result in this financial consequence for the acquirer’s stock price.
What is a stock price drop
The number of days we have outside the initial 28-day period if a prospect reschedules
what is within 42 days from when the initial confirmed meeting note was entered on Salesforce
The big three core banking providers in the US
What is Fiserv, FIS and Jack Henry
This crucial phase in the M&A process involves a comprehensive appraisal of a target company by the buyer to evaluate its assets, liabilities, and commercial potential
What is due diligence?
The ratio of a software company’s recurring revenue to its operating expenses.
What is the Rule of 40
A process where we get to know the clients in a business.
What are customer interviews
The information required to maintain a meaningful dialogue
What is relationship continuity AND a warm positive response AND Non-public new info about their plans or circumstances; OR any suggestion to reach back out, not to exceed 1 year
Mike Dufton was the CEO of this large InsureTech provider before joining Volaris
What is Solcorp