Beyond the deal: finding hidden growth potential in SaaS acquisitions with Colin Keeley @Verne
Dec 9, 2024
auto_awesome
Colin Keeley, Co-founder of Verne and a recruiter in Latin America, shares his insights on SaaS acquisitions. He discusses the nuances of enhancing acquired companies through customer feedback and strategic operational improvements. Keeley highlights the benefits of harnessing global talent, particularly from Latin America, to optimize business growth. The conversation also delves into balancing multiple ventures and the importance of effective communication in managing diverse teams in the competitive SaaS landscape. Tune in for unique strategies and valuable lessons!
Vern’s acquisition strategy has evolved to prioritize companies with over $1 million in ARR, reflecting a shift towards established businesses.
Colin Keeley emphasizes the role of customer feedback and data-driven marketing in operational improvements for stabilizing and growing acquired companies.
Deep dives
Business Acquisition Strategy
The discussion centers on the acquisition strategy of Vern, a software holding company, which focuses on purchasing companies that exhibit product market fit and strong annual recurring revenue (ARR). Initially, the company targeted smaller firms with around $200,000 in ARR but has since shifted its focus to those with a minimum of $1 million in ARR, ideally within the vertical market software space. Vern has successfully acquired three companies, including those categorized as 'venture orphans,' which refers to businesses that struggled to secure additional capital after earlier funding rounds. This strategic evolution reflects a broader trend of focusing on established companies with existing customer bases rather than newly launched startups, which tend to face higher risks and challenges in achieving growth.
Operational Improvements for Acquired Companies
Colin Keeley highlights the importance of making calculated operational improvements once a company is acquired. He places emphasis on obtaining feedback from existing customers to identify pain points and desired features, establishing a clear understanding of how to enhance the product. Alongside customer insights, he employs data-driven marketing strategies, such as running targeted advertising campaigns to optimize the sales funnel and increase traffic. This thorough approach to operational enhancements enables Vern to not only stabilize acquired businesses but also position them for substantial growth through various strategies, including refining pricing structures and improving product offerings.
Leveraging Talent in Latin America
The potential advantages of hiring talent from Latin America are explored, with a focus on cultural similarities and time zone alignment compared to other regions like the Philippines. Keeley discusses his experience in establishing a staffing agency in Latin America called Jules, which targets mid-level and senior talent, particularly in roles like accounting and marketing. This strategic decision stems from previous challenges faced while hiring in disparate regions, where cultural differences and time zone complications hindered productivity. The successful recruitment in Latin America demonstrates a commitment to finding effective solutions that enhance operational efficiency and tap into a diverse and capable talent pool.
saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.
Episode 27 is the special episode where Tim Schumacher takes over the hosting of the podcast to welcome Colin Keeley, Co-Founder of Verne, buying SaaS companies.
-----------Episode's Chapters-----------
00:00 - Introduction to Verne
06:44 - Improving Acquired Companies
14:03 - Labor Costs and Global Talent Acquisition
20:00 - Balancing Multiple Ventures and Focus Areas
