← Portfolio index
Hypothetical case study · fictional company
Full SaaS Acquisition Case
Aster Workflow is a fictional SaaS target. Adjust operating, valuation, synergy, and price assumptions to test whether the transaction creates value.
Adjustable assumptions
DCF uses five years of unlevered free cash flow, a margin ramp to 22%, a 28% illustrative tax and reinvestment haircut, and a Gordon Growth terminal value. IRR uses annual modeled free cash flow and run-rate synergy, plus year-five exit value, against the initial purchase price.
| Year | Revenue | Unlevered FCF | Present value |
|---|---|---|---|
| Year 1 | $84.3M | $8.5M | $7.7M |
| Year 2 | $104.6M | $12.0M | $9.8M |
| Year 3 | $129.7M | $16.8M | $12.3M |
| Year 4 | $160.8M | $23.2M | $15.2M |
| Year 5 | $199.4M | $31.6M | $18.7M |
| WACC | 2% growth | 3% growth | 4% growth |
|---|---|---|---|
| 10% | $315.7M | $354.2M | $405.6M |
| 11% | $276.1M | $305.0M | $342.1M |
| 12% | $244.5M | $266.8M | $294.7M |
Recommendation framework
Strategic rationale
Extend the acquirer into finance operations, increase enterprise wallet share, and cross-sell into an adjacent buyer group.
Principal risks
Customer concentration, softer cohort expansion, synergy timing, and a purchase price that may exceed standalone value.
Decision
Advance to confirmatory diligence, with valuation discipline and explicit synergy owners.
Case evidence
Market overview
Fictional finance-operations software category with durable workflow demand, fragmented point solutions, and suite-consolidation potential.
Target assessment
The hypothetical target combines recurring revenue and strong gross margin with concentration and expansion-rate questions requiring diligence.
Valuation bridge
Purchase price implies 4.6x current revenue. Standalone DCF, exit-multiple value, and explicitly owned synergies are considered separately.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $39M | $52M | $68M |
| Growth | 35% | 33% | 31% |
| Gross margin | 79% | 81% | 82% |
| EBITDA margin | -4% | 5% | 12% |
Public comps
Methodology is implemented; sourced, as-of-date public-company observations remain blank until Tyler adds a cited peer set.
Precedent transactions
Template is ready for announced transaction values and revenue multiples from citable public disclosures.
Revenue multiple analysis
Current purchase price is compared with current revenue and the adjustable exit multiple; comp and precedent ranges will complete the triangulation.