SaaS Interviews with CEOs, Startups, Founders The Micro PE Playbook: They Bought 20 SaaS Companies, $60m ARR, 300 people
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Aug 29, 2024 Tim, the founder of SaaS Group, shares his journey of acquiring 20 SaaS companies since 2018, leveraging his winnings from the Eyeo exit. He reveals insightful funding strategies, balancing personal investments, debt, and equity to grow his ventures. The discussion highlights the importance of navigating deal dynamics, managing customer churn, and understanding founder motivations. Tim also emphasizes the role of personal growth in professional success and the unique challenges of acquiring distressed companies, painting a vivid picture of the SaaS acquisition landscape.
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Bootstrap Funding for First Acquisitions
- Tim Schumacher used 100% of his own cash from dividends for the first two acquisitions at SaaS Group.
- They never start buying businesses without funds already secured to avoid jeopardizing deals.
Bring Strategic Investors Onboard
- Build relationships with strategic, experienced entrepreneurs to strengthen your equity round.
- A small dilution can bring valuable partners who add major operational value.
SaaS Group as Evergreen Operator
- SaaS Group operates as an evergreen operating company, not a fund, owning businesses indefinitely.
- They cherish founder legacies and do not plan to flip or resell acquired companies.