Upgrading the Finance Department: CFO Rebeca Sanchez Sarmiento

Lisa R. Parker

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CFO Rebeca Sanchez Sarmiento left powering her equity investigate roots in New York for Los Angeles approximately a decade ago. She has held different company strategy and finance roles for personal-fairness-owned businesses given that then, landing her very first CFO gig at ATTOM Facts Options in January 2018.

Sanchez Sarmiento is coming up on one particular 12 months as the initially CFO of R&D scientific program organization Dotmatics. Dotmatics is a portfolio firm of Insight Associates, which has invested in excess of $100 million, the previous funding spherical occurring in the to start with half of 2021. Through a collection of M&A specials, Dotmatics is tying alongside one another mission-critical R&D programs with a unified finish-to-conclude integrated data system to permit collaboration, workflow automation, and examination throughout biology, chemistry, formulations, and new therapy approaches. It’s technological innovation “built by experts, for researchers,” claimed Sanchez Sarmiento.

The University of Chicago MBA has the job of upgrading the accounting, economic reporting, and governance commensurate with expectations desired for a publicly held organization. She’s also using the services of for an FP&A crew to increase to the approximately 35 associates in finance and accounting distribute in the course of the United States, the United Kingdom, and New Zealand — a 24/7 “almost entirely performing from home firm,” Sarmiento stated.

In late June, I spoke to Sanchez Sarmiento about the company’s fiscal targets, the finance department buildout, and her role in M&A due diligence.


Rebeca Sanchez Sarmiento

CFO, Dotmatics

  • To start with CFO place: 2018
  • Notable past organizations:
    • InvestCloud (CFO)
    • ATTOM Data Alternatives (CFO)
    • Intelligent & Last
    • Mattel
    • Deutsche Financial institution

This job interview has been edited for brevity and clarity.

VINCENT RYAN: What are the objectives for the Dotmatics finance office?

Rebeca Sanchez Sarmiento: Producing this stop-to-finish vertical platform introduced a new set of troubles. It has enabled us to begin thinking about the future iterations of the group from a finance point of view. I really don’t imagine general public firm alternatives ended up always in the in close proximity to long run. Alterations to the organization design and the economics have authorized us to begin wondering about that.

I’ve targeted on my personal team’s transformation above the last 6 to nine months. I have been investing in the team, introducing much more specialized skills and subject issue area within just finance and accounting, and accomplishing a large amount of do the job all-around units integration. And making positive we have the good governance and procedures and strategies [for being a public company].

Can you give us a few of unique examples of that transformation?

Sanchez Sarmiento: We have grown drastically via acquisitions given that 2017, but 5 of the 10 acquisitions happened past 12 months. When I started previous September, we had 6 accounting programs. We’re ultimately integrating all people systems and making the framework for our long run-condition reporting needs. We’re going it all to one particular NetSuite application. 

Then the goal is to layer on additional resources and systems within just that option-established that will speed our [monthly close] and introduce [improved] workflows among a globally dispersed team. In addition, [it will] boost segregation of responsibilities and checks and balances amid the management team and the supporting employees.

We have long gone by the method of reconfiguring how we want details to stream and what the information requires to look like. We have also reviewed our accounting procedures to assure standardization and harmonization across all the obtained enterprise units. It has been a good deal of configuration, demands developing, and upcoming-state design.

The relaxation is scaling the group to ensure that we really do not just fulfill today’s wants but finally proceed the M&A ambitions. We want to make processes and construction to convey new acquisitions on board in a more seamless way.

What are the attributes you’re hunting for in FP&A work candidates?

Sanchez Sarmiento: Intellectual curiosity is really product for me. Persistence, for the reason that you have to commence very massive and go on peeling the layers of the onion to arrive at the root cause. And far more and additional technological capabilities are essential — maybe even owning some programming qualifications to leverage information and datasets and manipulate them rapidly and effectively. The fourth one is absolutely interaction abilities. They want to be in a position to collaborate, to function throughout the business —  check with crystal clear, concise queries, and then change all around and translate the conclusions in [layman’s terms].

What are the financial aims for the business enterprise in the future year or so?

Sanchez Sarmiento: Our objective is to proceed performing what we’ve been performing efficiently, which is rising at approximately 30% every year on a pro forma organic foundation, and proceed to ensure that we are resolute in making dollars flow. … We’re currently working at bigger than 120% internet retention [the percentage of recurring revenue retained from existing customers over a specific period]. That means we’re delivering to our shoppers, retaining them, and cross-offering and growing [their business with us.]

We continue on to be a “rule of 70” SaaS firm, which suggests 30% advancement and the balance of that [40%] is coming from totally free income flow generation.

My workforce and I are incredibly centered on deriving what we believe are the forward-looking potential clients of these acquisitions to be certain lengthy-time period benefit development and the specific return on expenditure, as perfectly as strain-testing the assumptions.

We’re quite privileged that we did two early funding rounds in the early stages and can fund our advancement internally. Specially in this [economic] atmosphere of climbing fascination costs and funds turning out to be a lot more high priced, that is really vital. We are constantly ensuring that we run competently, so we can invest in R&D and scale proficiently, and with the harmony spend in potential M&A.

What part do you or will you play in M&A specials?

Sanchez Sarmiento: We have a dedicated crew that scouts M&A potential customers. These days, we’re looking at much more than 1,200 programs in the R&D software package room and hoping to arrive at out to at the very least 30 or so regular to continue to keep that pipeline heat. And our CEO Thomas Swalla is predominantly focused on M&A and assisting travel individuals potential clients [toward a deal]. I see my role as a bit of a test and harmony.  I am here partly to be certain we use our readily available money successfully and successfully. 

I will typically discussion and push on what valuations we utilize to all those acquisitions. And definitely, my workforce and I are pretty concentrated on deriving what we believe are the forward-searching potential customers of these acquisitions to ensure long-term price development and the focused return on expenditure, as perfectly as anxiety-screening the assumptions.

The other aspect of M&A is integration. We are extremely focused on information integration as opposed to engineering integration, which is a key differentiator that enables us bigger results in M&A. When they merge, most software providers have to re-engineer the know-how itself. We develop a information layer that ties with each other the workflow system of the scientist. That is where by our value development arrives from, ensuring that the data fabric supports all these applications and is incredibly related with scientific study. That makes it possible for us to transfer rapidly and produce a far better finish-user encounter.

Our M&A playbook [is not about] charge synergies. Alternatively, we’re attaining mental capabilities and the technological know-how that supports them. So, we treasure the R&D we purchase and attempt to uncover every way achievable to keep on investing in it.

Disclaimer: Oracle NetSuite is a sponsor of CFO but experienced no enter on the contents of this interview.

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