Technology Companies

Did you know...?

The health of your business can be demonstrated through a unique combination of financial metrics.

Understanding and monitoring these data points in real time allows you to pivot, make better decisions and maximise growth.

These same metrics will also be used by an investor / acquirer to assess your business. So, why not start tracking them now?

Technology company characteristics

Backed by private equity / venture capital – Technology companies often rely on investor funding to grow and reach profitability. But, it is common for the financial reporting infrastructure to lag behind, which makes it difficult for them to communicate with investors.

‍Fast growing and scalable infrastructure – Technology companies often have a higher weighting on growth potential in their valuations when compared to many other industries. In other sectors, historical profitability and the client portfolio play a much larger role.

‍Subscription-based recurring revenue models – Technology companies often have recurring revenue components such as: licence, hosting and support fees. Annual recurring revenue is often a key driver of valuations and therefore retention metrics are particularly important.

Start-up

Characteristics

Revenue <£5m
Single entity
Domestic business
1-2 revenue streams
<100 customers
<50 employees

Scale-up

Characteristics

Revenue £5-30m
Multiple entities
International business
3-4 revenue streams
100-600 customers
50-300 employees

Enterprise

Characteristics

Revenue £30m+
Multiple entities
International business
5+ revenue streams
600+ customers
300+ employees
Different divisional and legal entity view

Technology company challenges

In 2-4 weeks, we prepare all of the financial information you need to present to investors and due diligence providers during the transaction process. Our exit readiness review consists of three main components: ‘Data deep dive‘, ‘LTV:CAC ratio‘ and ‘Business model‘.

Before Finomatic

During our years of experience working with technology companies, we have observed a number of common themes. Senior management often:

Lack confidence in strategic decision making due to incorrect or incomplete data
Have little experience of fundraising from institutional investors
Overlook the value of data analytics and automation expertise in the finance function, which results in overstretched teams
Are not prepared for a financial due diligence process at short notice
Do not have instant access to relevant KPIs due to time-consuming processes

What you currently do: Struggle with strategic decisions due to data quality issues

Why it matters for you

What you can now do instead: Have productive board meetings which focus on growth strategies

After Finomatic

Our solutions allow technology companies to:

Make informed strategic decisions – By having robust and reliable data, you can have more productive conversations with investors and focus on optimising the metrics which maximise your valuation.
Focus on the areas that matter most – By reducing time and money spent on repetitive tasks, senior managers can add more value by concentrating on big picture topics like client satisfaction and product development.
Transaction readiness – By running your business with a bespoke solution which is designed for a transaction process, you are always ready to capitalise on interest from potential investors at the opportune moment, without taking focus away from day-to-day operations.

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Our solutions

We complete transformation projects with technology companies every six weeks, so we know what information you are looking for. We work closely with CFOs, finance directors, financial controllers and senior management to build a highly automated solution which is completely bespoke to your business.

Accurate

Reconcile financial and operational data to align with your vision of the business
Ensure data is ready for a corporate finance transaction at any time