In this week’s Built to Sell Radio episode, John Warrillow interviews Tim Schumacher, co-founder of SaaS Group and a prolific founder turned acquirer. With 20 businesses acquired and his own background in founding Sedo.com, Tim shares how you can understand whether you’re a “zero to one” or a “one to ten” founder—and how that knowledge can help you position your business for an exit.
You’ll discover how to:
- Identify if you’re a “zero to one” or “one to ten” founder.
- Use product-led growth to attract acquirers.
- Protect your business from nosy acquirers.
- Structure fair earnouts and avoid re-trading.
Quote of the Week
“We look at the people. We look at what’s the style they’re running the companies, their cultural fit.”
– Tim Schumacher on how they select companies to acquire.
Deals
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Airbase Inc., a finance and spend management software provider, has been acquired by Paylocity (NASDAQ: PCTY), a cloud-based HR and payroll software company. The deal is valued at approximately $325 million, roughly one times Airbase’s revenue.
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Kent Island Mechanical, LLC (“KIM”), a provider of mechanical, electrical, and plumbing solutions, has been acquired by Limbach Holdings, Inc. (Nasdaq: LMB), a building systems solutions firm. The initial purchase price for the acquisition was $15 million. KIM generated approximately $4 million in EBITDA in 2023, implying a valuation of over 3.5 times EBITDA for the transaction.
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ShareFile, a unit of Cloud Software Group, has agreed to be acquired by Progress Software (PRGS.O) for approximately $875 million. Launched in 2005 by Jesse Lipson, ShareFile provides secure file sharing using advanced encryption methods. With an estimated revenue of $240 million, the acquisition values ShareFile at over 3.5 times its revenue.
