David Hauser built Grasshopper to $30M in Annual Recurring Revenue (ARR). He sold it to Citrix for $175 million—a massive exit made even more remarkable by the fact that he and his partner owned the majority of the company.
But what makes this episode compelling isn’t the exit. It’s what happened next.
Now the Managing Partner of Durable Capital, Hauser has become a disciplined acquirer of businesses with what he calls “durable demand.” He shuns roll-up plays, mocks the private equity crowd chasing plumbing and HVAC companies, and positions himself against ETA buyers who, in his words, “have no idea what they’re doing.”
Want more on how acquirers think? Download Inside the Mind of an Acquirer—our free eBook for founders preparing for an exit.
In this episode, you’ll learn how to position your company to stand out to an experienced acquirer like Hauser.
You’ll learn how to:
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Use structure—not just valuation—to win a deal
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Avoid the legal mistake that kills deals
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Decide when it’s better not to sell
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Spot the difference between a ‘river’ and a ‘reservoir’
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Understand how buyers think about customer concentration
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Compete against PE and ETA buyers without running an auction
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Manage the identity crisis that often follows a big exit
Get the latest installment of our Inside the Mind of an Acquirer series now:
Quote of the Week
Most of them have no idea what they’re doing. They’ve never run a company, they’ve never bought a company, they never sold a company.
Deals
Mecco, a specialist in industrial part-marking and traceability systems, has been acquired by Brady Corporation (NYSE: BRC) for $20 million in an all-cash deal. Mecco is expected to generate $20 million in revenue for the fiscal year ending July 31, 2026, giving the acquisition a valuation of 1x forward revenue.
