Why David Hauser Walked Away After a $175M Exit to Become a Disciplined Buyer

Most founders measure success by the price they get for their company.

David Hauser did that—he built Grasshopper to $30M Annual Recurring Revenue (ARR) and sold it for $175M – almost 6 times revenue. He and his partner owned the majority of the shares so the deal was life-changing for Hauser. But what makes this interview different is what Hauser did next: he crossed the table to become an investor and now acquires businesses through Durable Capital.

It’s a study in contrasts. As a founder, Hauser chased growth. As an investor, he’s ruthlessly disciplined. He mocks the PE herd chasing home services roll-ups and avoids auction-driven deals. Drawing on his experience founding Grasshopper and Mark Cuban-backed Chargify, he outmaneuvers ETA buyers and first-time acquirers with quiet, direct, close-ready offers. This is a rare window into how someone who’s built and sold a business thinks about buying one—and what makes a deal attractive from the other side.

You discover how to:

• Spot the difference between rivers and reservoirs

• Avoid the #1 mistake sellers make with legal counsel

• Navigate the emotional crash post-exit

• Position yourself against ETA buyers in a crowded market

• Understand why private equity pays too much (and how to win when they do)

• Structure a deal to minimize equity and close fast

Listen now to hear how a successful founder thinks—and buys.

Show Notes & Links

David’s Grasshopper Story

Durable Capital

Connect with David on LinkedIn

Definitions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Roll Over Investor: A rollover investor, in the context of selling a business, refers to an individual or entity that rolls some of their proceeds from the sale with the buyer. This strategy allows the seller to defer capital gains taxes and potentially leverage their expertise or resources in a new venture.

Debt Coverage Ratio: The debt coverage ratio is like a financial health check for a small business applying for a loan from a bank. It shows whether the business earns enough money to comfortably cover its debt payments.

In simpler terms, it’s a way for the bank to see if the business can afford to pay back the loan. If the ratio is high, it means the business is making enough profit to easily handle its debts. But if it’s low, it could indicate that the business might struggle to make loan payments, which could make the bank hesitant to lend them money.

Let’s say there’s a small bakery called “Sweet Delights” that wants to expand its operations by taking out a loan from a bank to buy new equipment. The bank wants to make sure Sweet Delights can afford to repay the loan, so they calculate the debt coverage ratio.

Sweet Delights’ annual net income (profit) is $50,000, and they have annual loan payments of $20,000 for existing debts.

The debt coverage ratio formula is:

Debt Coverage Ratio = Net Operating Income / Total Debt Service

In this case: Net Operating Income = $50,000 (annual profit) Total Debt Service = $20,000 (annual loan payments)

So, the debt coverage ratio would be:

Debt Coverage Ratio = $50,000 / $20,000 = 2.5

This means that for every dollar of debt Sweet Delights has, they’re making $2.50 in profit. In simple terms, the higher the ratio, the better, because it shows that Sweet Delights is making enough money to comfortably cover its debt payments. This would likely make the bank more confident in lending them the money for the new equipment.

About Our Guest

David Hauser

David Hauser is an Inc. 30 under 30 Serial Entrepreneur, Angel Investor and Speaker. In addition to Grasshopper, he is the Founder of Chargify, a profitable SaaS company with an investment from Mark Cuban, and an angel investor in a variety of successful startups including Intercome, Unbounce, Munchery and Groove.

David is now the Managing Partner at Durable Capital.