Fractional CFO for test & measurement companies
Test and measurement is an installed-base business dressed as an instruments business. The instrument sells once; calibration, service contracts, consumables and software then run for ten to twenty years, and cumulative aftermarket revenue typically dwarfs the original sale. Reporting those streams together breaks the model.
We build the finance function around the aftermarket. Reporting separates instrument revenue from calibration, service, consumables and software so the recurring base is visible at gross-margin level. Warranty and end-of-life reserves are modelled against actual return data, and FP&A is structured around installed-base attach, service-renewal economics and software ARR. Capitalised R&D is treated to the standard buyers expect.
Flow provides financial modelling, FP&A and fractional CFO advisory to test and measurement companies across electronic and RF test, semiconductor metrology and inspection, materials and analytical instruments, environmental and emissions testing, and calibration and lab services. Startup CFO and FP&A support covers the full installed-base lifecycle.
KPIs to track for "test & measurement" startups
We're very 'KPI-driven' fractional CFOs, and we make sure to monitor the right metrics for your startup.
Instruments shipped
Installed base
Service attach rate
Calibration & service revenue
Consumables revenue
Software & data ARR
Aftermarket revenue mix
Gross margin by line
Bookings & backlog
Warranty & service reserve %
Financial modelling for "test & measurement" startups
As fractional CFOs, we build KPI-driven financial models that are insightful and easy to maintain.
Financial modelling is both art and science - models must be robust, but also understandable, and useful for both internal planning and VC fundraising purposes. Hire a fractional CFO who knows how to handle both sides of the equation.
Installed base lifetime value
Each instrument cohort modelled across a ten-to-twenty year aftermarket curve covering calibration cycles, service contracts, consumables and software renewals. Shows the cumulative aftermarket dollars per instrument that should anchor the equity story.
Aftermarket attach and renewal
Calibration attach, service-contract penetration and software-renewal rates tracked per vintage and product family, with churn modelled against end-of-life and replacement events. Separates a healthy installed base from one quietly aging out.
Revenue split and gross margin by line
Instruments, calibration and service, consumables and software ARR each reported with their own COGS and gross margin so the recurring base is legible. Stops a one-time instrument quarter from masking what is happening in the recurring economics.
Warranty and end-of-life reserves
Warranty accrual and end-of-life support obligations built from actual return-rate and field-service data per product line, not flat percentages. Holds up in diligence and prevents reserve catch-ups that wreck a quarter.
Capitalised R&D and IP
Internal-use and product R&D capitalisation policy applied consistently across instrument platforms and software, with amortisation curves tied to product lifecycles. Aligns the P&L to what strategic and PE buyers expect in diligence.
Bookings, backlog and capacity
Instrument orders, calibration-lab capacity and service backlog modelled against revenue-recognition rules and headcount, including semiconductor-cycle exposure where relevant. Distinguishes a soft quarter from a structural slowdown in capex demand.
Founders and investors we've worked with
We've supported winning builders across test & measurement and beyond.
Hector
We acted as fractional CFO to Hector Aurumi, a Dubai-based specialist software house with AI/ML, IoT and data science expertise, providing confidential valuation guidance to the management team.
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Percepto
As a fractional CFO we performed a confidential valuation of Percepto, a Tel Aviv-based autonomous drone monitoring platform for critical infrastructure and industrial sites, supporting Elevator Fund's portfolio management.
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TBô
We acted as fractional CFO to TBô, a Zurich-based tech-enabled DTC male underwear brand, building a bottom-up financial / operating model with cohort-level KPIs and positioning the company for its next venture round.
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Onlogist
We acted as fractional CFO to Onlogist, a Hamburg-based online marketplace for last-mile vehicle transfer, providing confidential valuation guidance and operating model support.
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Marcura
We acted as fractional CFO to Dubai-based Marcura, owner of maritime payroll and B2B payments platform MarTrust, advising on the strategic e-Wallet vendor selection and supporting product/finance integration.
See moreRecent fractional CFO track record
See our fractional CFO and financial modelling experience across test & measurement and beyond.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for test & measurement startups.
Per month
- Accounting / FP&A tech stack implementation
- Monthly financial statements and reporting pack
- Quarterly board pack with detailed financial analysis (with variance analysis vs. budget, relevant KPI observations etc.)
- Investor-friendly output
Per month
- Everything in Core, plus
- Operating model (via an online platform like Runway or Excel-based)
- Ongoing model maintenance, refining projections, burn/runway management
- Customer cohorts modelling, churn and retention analysis
- LTV / CAC, unit economics analysis
- Cap table management
Per month
- Everything in Grow, plus
- M&A / fundraising support; review of business plan
- Pitch deck preparation
- Investor approach strategy / list building
- Due diligence support and deal negotiation
- Valuation as required and free access to Multiples Pro
Packages shown are illustrative, final pricing is tailored to client requirements.
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We know tech inside & out.
We provide fractional CFO services to companies operating across the entire tech.
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We help you scale by providing fractional CFO advice, through fundraising and a successful M&A exit.
VC fundraising for test & measurement companies
We help you prepare materials, reach out to investors in our extensive network, negotiate fair term sheets and structure the VC round.
Learn moreM&A for test & measurement companies
We advise winning tech companies on M&A exits, and over the years successfully executed numerous transactions with both financial and strategic buyers.
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