Built to Sell Radio Ep 512 Exit Story: Selling iLab for 6× ARR, Choosing Strategic Over PE, and Life After an Eight-Figure Exit
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Sep 19, 2025 Tad Fallows, the bootstrapped founder and former CEO of iLab, shares his journey from launching a SaaS platform for research labs to selling it for approximately six times its revenue to Agilent Technologies. He discusses the tough decision of whether to sell early or gamble on greater value, the complexities of running a banker-led auction, and why he chose strategic buyers over private equity. After his eight-figure exit, he founded Long Angle, a community to support first-generation wealth creators in navigating financial and personal challenges.
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Origin Story: Problem Found In The Lab
- Tad Fallows started iLab after a Harvard researcher friend described spending more time managing lab logistics than doing research.
- The founders pivoted from small-ticket lab procurement to enterprise core-facility management after a customer funded development and promised six-figure recurring revenue.
Force Upfront Payments To Protect Cash
- Require customers to prepay 12 months of SaaS fees to maintain positive cash flow while growing quickly.
- Send invoices earlier than the payment cycle to counter very slow university payments and reduce AR float.
Grow TAM With Proof Not Promises
- To raise valuation, prove expanded TAM with international customers and add-on modules, not just projections.
- Clean customer data and show renewals, ARR history, and module adoption to convince strategic buyers.
