04
Sell-Side Financial Readiness for SaaS Organization
About
A SaaS organization preparing for a sale recognized the need to significantly improve historical financial reporting before engaging bankers. Taylor White was brought in to strengthen EBITDA reporting, enhance revenue analytics, refine expense classification, and improve the accuracy and efficiency of CIM development for the upcoming sale process.
Before entering a formal sell-side process, the Company identified gaps in historical reporting, revenue segmentation, margin visibility, and SG&A normalization. These issues hindered the creation of a reliable CIM and reduced confidence in financial quality for prospective acquirers.
Our team enhanced EBITDA reporting, created a structured bridge to Pro Forma EBITDA, built recurring revenue and customer analyses, refined cost classification, reviewed rebate compliance, and developed financial models designed to refresh cleanly each quarter throughout the sale timeline.
Problem
Insufficient Historical Reporting for Sell-Side Preparation
The organization lacked clean historical reporting, clear revenue segmentation, accurate expense classification, and a reliable bridge to normalized EBITDA. These gaps made CIM preparation inefficient and created risk of misrepresentation during buyer diligence.
Goal
Build Investor-Ready Reporting and Improve CIM Efficiency
The objective was to upgrade historical reporting, create transparent EBITDA adjustments, strengthen revenue analyses, and ensure financials presented a clear, accurate, and defensible picture of the business before banker engagement.
Solution
Enhanced EBITDA Reporting, Revenue Visibility, and SG&A Normalization
Taylor White delivered a full sell-side readiness program, including adjusted financials, recurring revenue analytics, customer concentration reviews, gross margin analyses, SG&A normalization, and disciplined financial modeling aligned with CIM requirements.
Structured Sell-Side Readiness Program
We executed a three-phase readiness approach covering EBITDA quality, revenue analytics, and SG&A evaluation to ensure the Company entered the market with investor-grade reporting.
Phase 1
Adjusted general ledger financials for out-of-period items and reclassified expenses between COGS and SG&A
Developed a one-time adjustment schedule and built a bridge from Net Income to Pro Forma EBITDA
Created a quarterly update interface to refresh the model efficiently throughout the sale process
Phase 2
Revenue Reporting
Enhanced reporting across recurring, non-recurring, and service revenue streams based on unique valuation multiples
Built top-25 customer analysis with three-year lookback and explanations of year-over-year changes
Prepared line-of-business gross margin analyses
Developed recurring revenue projections, backlog analytics, renewal statistics, and deferred revenue waterfalls
Phase 3
Expenses
Reviewed SG&A to remove business-owner expenses for normalization
Conducted critical review of rebate clauses to ensure GAAP-compliant treatment
Adjusted recognition and realization of advertising and marketing expenses to align with GAAP
Capitalization of certain sales commissions
Result
Investor-Ready Reporting and Efficient CIM Development
Through this engagement, the Company entered the market with clean, defensible financials, improved revenue transparency, and a normalized EBITDA profile that aligned with investor expectations and banker guidance.
Enhanced analytical tools, updated models, and strengthened reporting processes enabled efficient CIM development, clearer valuation narratives, and improved buyer confidence throughout diligence.
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