398: saas.group: Scaling Bootstrapped SaaS via Acquisitions - with Tim Schumacher
May 23, 2024
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Tim Schumacher, co-founder of saas.group, discusses scaling bootstrapped SaaS via acquisitions, their portfolio of 18 companies, acquisition strategy, building a sellable business, and exploring climate action in tech.
SAS Group acquires SaaS businesses with annual revenues of 1-10 million, focusing on cultural fit and independence post-acquisition.
Founder-friendly approach: SAS Group supports founders through acquisitions with transparency, autonomy, and centralized resources for scaling.
Deep dives
Acquisition Criteria for SAS Group
SAS Group looks for businesses with annual recurring revenue between 1 and 10 million, focusing on profitable and growing companies, predominantly in general productivity tools, developer tools, and online marketing segments. They prioritize businesses with customer bases in the US, North America, and Western Europe, while also considering operations worldwide. Cultural fit and values are crucial as they acquire people and teams, valuing autonomy, independence, and a collaborative approach to sustaining existing company cultures post-acquisition.
Founder-Friendly Approach at SAS Group
Regarding the founder-friendly approach, SAS Group aims to support founders through the acquisition process with transparency and personal interactions. They provide autonomy to acquired companies while offering centralized resources for scaling and operational support. The focus is on maintaining the independence of the acquired businesses, allowing founders to choose from a menu of support services to enhance their operations and growth.
Acquisition Process at SAS Group
The acquisition process at SAS Group begins with a founder's decision to sell, followed by initial calls to assess business fit. This progresses to indicative offers, non-binding term sheets, and due diligence to evaluate technology, personnel, financial, and legal aspects. Transparent communication is central, ensuring founders feel assured throughout the acquisition journey, which typically spans around three months from initial contact to deal closure.
Advice for Building A Sellable SaaS Business
For founders aiming to build a sellable SaaS business, maintaining a strong business foundation is key. Ensuring data room readiness, addressing documentation gaps, and grooming potential successors can enhance the company's sellability. Additionally, making the business less dependent on the founder and clearly defining motivations for selling are crucial steps in preparing for successful acquisition opportunities.