Buy and Build Ep: 98 - Navigating Total Addressable Market (TAM) with £100M Operator and Investor Matthias Knaur
May 10, 2025
In this insightful discussion, Matthias Knaur, a seasoned operator and investor in the European search fund community, shares his expertise on scaling small companies to over £100M in revenue. He unveils the intricacies of identifying total addressable markets (TAM) and emphasizes the value of studying adjacent markets. Dive into the challenges of customer concentration risks and the importance of execution over spreadsheets. Knaur also highlights strategies for aligning investment goals with stakeholder expectations, offering invaluable lessons for aspiring investors and business leaders.
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Matthias's Acquisition Transformations
- Matthias Knaur shared how he pivoted a German software company into a fintech service provider and sold it.
- He then transformed a small Swiss B2B distributor into a tech-enabled company with 100 million in sales.
Understanding TAM and Adjacent Markets
- Total Addressable Market (TAM) is the ocean your company swims in, representing the full market you address.
- Understanding your TAM and adjacent markets helps uncover bigger growth opportunities by solving related customer problems.
Assessing TAM Feasibility
- Evaluate if it's feasible to grow your company's revenue based on the size of the TAM and achievable market share.
- Use sensitivity analysis to explore different growth scenarios and validate your investment thesis.
