The Impact of Positioning on Agency Valuation

Points of Interest

• 00:49 – 01:52 – Shiv's Background: Shiv shares his journey from building and selling a company to now running How To SaaS, where he works with private equity investors and software companies on marketing strategies.
• 01:53 – 02:51 – Marketing for Private Equity: Shiv explains his company’s focus on providing marketing due diligence, strategy consulting, and fractional CMO services to private equity firms and software companies.
• 02:52 – 03:41 – The Power of Positioning: Marcel highlights the uniqueness of Shiv’s focus on private equity, differentiating How to SaaS in the market by addressing specific investor needs.
• 06:06 – 07:40 – Product Market Fit: Shiv talks about the creation of a new market category—marketing due diligence—and how this focus on strategy over tactics helped his firm differentiate itself.
• 07:41 – 09:05 – Preparing for Exit: Shiv explains how businesses should prepare for a sale by focusing on predictable revenue, reducing customer concentration, and ensuring operational efficiency to appeal to buyers.
• 9:06 – 12:02 – Identifying Ideal Clients: Shiv emphasizes the need to focus on ideal customers who bring in scalable, predictable revenue and why saying no to less ideal clients is key to long-term success.
• 12:03 – 15:57 – Strategic Specialization: Shiv highlights how specializing in a narrow, focused market can lead to higher margins, better client retention, and an overall increase in business valuation.
• 15:58 – 21:38 – Internal Efficiency and Gross Margins: Marcel and Shiv discuss how internal specialization and optimizing gross margins can make an agency more profitable and attractive for acquisition.
• 21:39 – 27:25 – The Importance of Sales Conversations: Shiv stresses the importance of clear sales processes and managing client expectations upfront, ensuring alignment with the agency’s focused services.
• 27:26 – 34:50 – Post-Acquisition Strategy: Shiv outlines how post-acquisition marketing strategies must align with the new owner’s goals, focusing on budget efficiency, strategic cross-selling opportunities, and operational improvements to drive value.

Show Notes

• Shiv’s Website: https://www.howtosaas.com/
• Shiv's LinkedIn
• New Book: Exit-Ready Marketing
• Old Book: Post-Acquisition Marketing

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