In this episode, Evan Fein, CFO of TextNow and Global Chairman of The F Suite, a professional group for CFOs, joins CJ for a deep dive into the complexities of being acquired. Evan introduces listeners to his company TextNow, and how it remains free while making money. He also covers important metrics for CFOs in telecom such as Average Revenue Per User and the importance of considering the time value of money. While we often hear from people on the buying side of M&A, Evan then sheds light on what it’s like being the CFO of a business that is being acquired, discussing the different types of acquisitions and how the due diligence process differs. He shares insights on continuing to run a company while managing due diligence and key lessons learned. Evan also offers advice on managing board expectations, sharing customer data, handling bad news, communicating with CEOs and investment bankers, when to include optimism, and generally mastering the art of being acquired while simultaneously also often working yourself out of a job.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Planful is a financial performance management platform designed to streamline financial tasks for businesses. It helps with budgeting, closing the books, and financial reporting, all on a cloud-based platform. By improving the efficiency and accuracy of these processes, Planful allows businesses to make better financial decisions. Find out more at www.planful.com/metrics.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. 

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

—

TIMESTAMPS:

(00:00) Preview and Intro

(02:16) Sponsor - Maxio | Planful

(06:38) How TextNow is Free and Makes Money

(09:21) Evan’s Start in Finance and Telecom

(11:15) Important Metrics for CFOs in Telecom

(15:49) Considering the Time Value of Money

(16:15) Sponsor - Leapfin | Mercury | NetSuite

(19:31) The Metric of Average Revenue Per User

(21:01) Definition of a Customer Versus a User

(24:39) Managing Churn & Churn Metrics

(26:16) Different Flavors of Acquisitions at a Company Getting Acquired 

(27:57) How the Due Diligence Process Differs Based on Type

(30:37) Running the Company While Doing Due Diligence as a CFO

(32:13) Key Learnings From the Due Diligence Process

(33:52) When to Include Optimism in Your Model

(36:06) Conversations With the CEO in the Acquisition Process

(38:23) Insight and Advice for Working With Investment Bankers 

(45:27) Managing Board Expectations

(47:11) CFO Job Security in an Acquisition

(48:50) Long-ass Lightning Round: Controlling Outcomes and Scarcity Complexes 

(51:49) Finance Software Stack

(53:02) Craziest Expense Story

Get full access to Mostly metrics at www.mostlymetrics.com/subscribe