Peter Vander WallFounder driving creative community growth

This Mistake Cost me in the Deal

Name: This Mistake Cost me in the Deal
Uploaded: 2025-09-26T17:01:34+00:00
Duration: 12 s
Channel: Peter Vander Wall
Description: Short conversation from a YouTube video about due diligence in financial deals. Speakers discuss a missed diligence item—seasonality of cash flows—and…

26 Sept 2025 · 0 min

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0:12

Short conversation from a YouTube video about due diligence in financial deals. Speakers discuss a missed diligence item—seasonality of cash flows—and methods to analyze it (monthly P&L breakdown, distinguishing recurring vs non-recurring revenue). One speaker contrasts this with SaaS businesses, praising their predictable recurring revenue and metrics (churn, customer acquisition, growth).

Were there any red or yellow flags that presented themselves to you in this due diligence period?
Most of it checked out. I should have spent more time on the seasonality of the cash flows though.
And how exactly would you analyze that on a future deal?
I would be breaking out their P and L every month, seeing what's recurring, what's not, when are they collecting cash on the non recurring work?
Well that's why I like SaaS. Companies trade at such a high multiple because it's all like they've got a million clients paying 297amonth or something and it's like very, very predictable. They've got their churn rate, you know exactly what that's going to be, you know exactly what their equ acquisition rate is and their growth rate. And so it's like one of the safest, most stable bets you can make until some AI comes out that does the thing their software does but.
Knock your sign.