Run the Numbers
Climbing the FP&A Ladder to CFO: IPOs and M&A with Philip Watson, CFO of Paddle
Feb 8, 2024
Philip Watson, CFO of Paddle, discusses the complexities of IPOs and acquisitions. Topics include tech versus revenue acquisitions, operating within debt covenants, FP&A's role in the IPO process, picking disclosed metrics, decision making frameworks, and more.
49:28
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Quick takeaways
- The intense pressure and stress that comes with managing major financial transactions before going public, highlighted by the personal anecdote of experiencing stress-related chest pain during a period of high activity.
- The different strategies and considerations involved in acquisitions, such as focusing on cost synergies for one acquisition (Rain King) and revenue synergies for another (Zoom info), along with the importance of building financial models, tracking synergies, and proving business cases to stakeholders.
Deep dives
The CFO's Experience with High-Stress Acquisitions and IPOs
The podcast episode features an interview with Philip Watson, CFO of Paddle, discussing his experiences with major acquisitions and the IPO process. Watson shares a personal anecdote about experiencing stress-related chest pain during a period of high activity, emphasizing the intense pressure that comes with managing important financial transactions before going public. He discusses the nuances of different types of acquisitions, the role of FP&A in the IPO process, and the importance of accurate forecasting and communication. Watson also highlights the significance of rolling financial metrics and the challenges of choosing which metrics to disclose and guide to.
