About this episode
Drew Goodmanson started Monk Development as a custom website development shop and evolved it into a product enabling churches to establish an online presence. With more than 300,000 churches in the United States, Goodmanson’s company took off and he grew it to more than $3 million in recurring revenue per year, leveraging the Software as a Service (SaaS) business model.
In 2015, Goodmanson sold Monk to Ministry Brands and was then dispatched by Ministry to go and buy up similar software companies. Working for Ministry, Goodmanson eventually acquired 10 small software companies into one mega group.
Goodmanson has the unique perspective of being both the hunter and the hunted, and in this episode, you’ll learn about:
- Reconciling your emotional fears around selling
- Switching from a service business to a product business (and how to fund the switch)
- Assembly line thinking
- The dangers of getting deal “pregnant”
- Translating values from window dressing to operating principles employees actually follow
- How to avoid an earn-out
- “Post acquisition economics” and how to use them to drive up the value of your company
- The best time to sell your company
Have You Figured Out Your Recurring Revenue Model?
Goodmanson got a multiple of revenue (not profit) for his business in part because it relied on a subscription based billing approach. You may think subscription billing is just for software companies but there are actually nine unique recurring revenue models, meaning any company, from just about any industry, can find a model that’s right for them. Recurring revenue will be our focus in Module 5 of The Value Builder System™—get started for free by completing Module 1 (Value Builder questionnaire) now.
About Our Guest
Drew is a founder/CEO, who has built and sold several companies. His last company, Monk Development was a SaaS company in the faith-based market. In 2015 Monk Development was sold to Ministry Brands where Drew consolidated 10 SaaS companies into one business unit. In this role, he was part of the team that won the 2017 Private Equity Large Market Deal of the Year. He has led companies in a variety of markets and industries including winning INC 500/5000, CEO of the Year and Best Places to Work awards. He has raised seed money from high net worth executives and venture capital from Silicon Valley.