Multiples, models, and IC discipline
Valuation & Modelling
Practitioner reference on the valuation workstream: LTM adjustments, ARR quality, the Rule of 40, multiples, DCF discipline, and the cohort math that moves an IC view.
9 min · vc, corp-dev, corp-finance, strategic
LTM Adjustments Explained
Understanding LTM adjustments: a guide for M&A professionals on quality of earnings, EBITDA normalizations, and adjustments that withstand scrutiny.
9 min · vc, corp-dev, corp-finance, strategic
ARR Quality Assessment for SaaS Targets
Framework for assessing Annual Recurring Revenue (ARR) quality in SaaS M&A targets, focusing on contractual terms, billing practices, expansion revenue, and cohort analysis.
9 min · vc, corp-dev, corp-finance, strategic
Rule of 40 — A Deep Dive
Explores the Rule of 40: its mechanics, cash-based recalculations, and limitations for growth-stage SaaS companies.
9 min · vc, corp-dev, corp-finance, strategic
SaaS Valuation Multiples — Where the Market Sits
Analysis of SaaS valuation multiples in public and private markets, reviewing comparable selection, and outlining the typical discount layers applied by M&A buyers.
9 min · vc, corp-dev, corp-finance, strategic
DCF Modelling for Tech Targets
Building defensible DCF models for high-growth tech targets requires discipline in terminal value, WACC, and anticipation of committee challenges.
9 min · vc, corp-dev, corp-finance, strategic
Working Capital Normalisation in Valuation
Understanding working capital normalisation in M&A valuation, including methodologies for establishing a target working capital peg and managing complex current asset/liability considerations.
9 min · vc, corp-dev, corp-finance, strategic
Customer Cohort Analysis for Valuation
Understanding customer cohort analysis for valuation: net retention, churn vs. contraction, and mitigating seller-induced distortions.
9 min · vc, corp-dev, corp-finance, strategic
Earn-Out Modelling and Fair Value
Understanding earn-out fair value, buyer integration into headline valuation, and the role of options theory in assessing these contingent consideration structures in M&A.
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