Building a Full Financial Model for a GP Acquiring a US B2B SaaS Company

We supported a mid-market General Partner in underwriting the acquisition of a US-based B2B SaaS platform through a fully integrated financial model. The engagement combined private equity modeling, ARR cohort analysis, and private credit structuring to evaluate valuation, returns, and downside risks. Our work enabled IC approval through precise scenario modeling, capital structure optimization, and SaaS-specific KPI benchmarking aligned with Financial Services and FinTech transaction standards.

Identifying Challenges

• Lack of standardized SaaS cohort data limited visibility into ARR durability, net revenue retention, and forward revenue predictability under varying macroeconomic scenarios.
• Complexity in modeling deferred revenue, contract liabilities, and revenue recognition created inconsistencies in cash flow forecasting and EBITDA normalization.
• Private credit financing introduced covenant sensitivity and cash sweep dynamics, requiring precise integration into LBO structure and downside stress cases.
• Market volatility in FinTech valuations required dynamic sensitivity frameworks to align entry multiple assumptions with comparable transactions and public comps.

Our Solution

• Developed a fully integrated three-statement LBO model incorporating SaaS-specific revenue drivers, including ARR growth, churn, expansion revenue, and cohort-level retention dynamics, enabling granular forecasting across base, upside, and downside cases aligned with institutional investment committee standards.
• Built a detailed revenue bridge linking bookings, billings, ARR, and GAAP revenue, accurately modeling deferred revenue flows and contract liabilities to ensure consistency between operational KPIs and financial statements.
• Structured a private credit financing layer, integrating term loans, PIK instruments, and covenant packages, with dynamic interest modeling, cash sweep mechanisms, and covenant headroom analysis under multiple stress scenarios.
• Conducted valuation benchmarking using precedent SaaS transactions and public market comparables, embedding dynamic multiple sensitivity tables to assess IRR accretion/dilution across entry and exit scenarios.
• Designed scenario and sensitivity frameworks covering churn shocks, CAC inflation, margin compression, and delayed enterprise deal cycles, enabling the GP to evaluate downside protection and capital preservation strategies.
• Delivered IC-ready outputs, including return attribution analysis, IRR/MOIC decomposition, and executive dashboards, aligning financial modeling outputs with private equity decision-making frameworks and LP reporting expectations.

Highlights

• SaaS LBO model precision
• ARR cohort analytics integration
• Private credit structuring depth
• Deferred revenue modeling accuracy
• IC-ready investment framework delivery
• Downside risk scenario engineering

Highlights Overview (50 words):

The engagement demonstrated deep expertise across Financial Services, Private Equity, and FinTech modeling. By integrating SaaS operating metrics with institutional-grade LBO structuring, we enabled precise valuation underwriting, enhanced risk visibility, and seamless IC approval. The outcome was a robust, decision-ready model aligning operational drivers with capital markets realities.

Marking the Transition 

From fragmented SaaS metrics and financing complexity to a fully integrated, decision-grade financial model, enabling the GP to transition from exploratory diligence to conviction-driven investment execution.

• Fragmented data to clarity
• Complexity to structured modeling
• Assumptions to data-backed insights
• Risk to quantified scenarios

Client Testimonial

The level of rigor in integrating SaaS operating metrics with private credit structuring was exceptional. The model became central to our IC approval and lender discussions

Partner of a Technology-focused Private Equity Firm

Business Impact 

For private equity investors and Financial Services firms, our approach transforms SaaS acquisition underwriting by bridging operational KPIs with capital structure realities. This enables faster IC approvals, improved lender alignment, and enhanced downside protection. In complex FinTech transactions, our models provide actionable visibility into ARR sustainability, leverage tolerance, and valuation discipline—directly improving deal execution certainty and post-acquisition value creation strategies.