On this week’s Built to Sell Radio, John Warrillow talks to Tim Schumacher, co-founder of SaaS Group, about the mindset of an acquirer.
Tim shares Peter Thiel’s “zero to one” versus “one to ten” concept and how knowing which one you are can shape your business.
You’ll discover how to:
Identify if you’re a “zero to one” or “one to ten” entrepreneur.
Create a company that attracts acquirers with product-led growth.
Protect your company from acquirers snooping around behind your back.
Avoid re-trading during negotiations.
Align your personal goals with deal structures and earnouts.
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About Tim Schumacher
Tim began his entrepreneurship and investment journey when he got his first computer as a kid. He then founded and led a few companies, including Sedo.com, Eyeo.com (makers of AdBlock), and, most recently, saas.group.
He’s been in founders’ shoes and knows how to make acquisitions founder-friendly, streamlined, and strategic.
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.
Product-led Growth (PLG):
This is a business development strategy where the product itself serves as the primary driver of customer acquisition, conversion, and expansion, relying on product usage as the main growth lever.
TAM: “Total Addressable Market.” It’s a business term that represents the overall revenue opportunity available for a product or service in a specific market. To put it simply, TAM is the maximum amount of money a company could potentially make if they captured every single customer in a given market who might be interested in what they’re selling.
Discover the strategies from Built to Sell that will not only grow your business but set you up for a lucrative exit.
Learn more about our newly launched self-paced online course The Built to Sell Blueprint.
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