In this discussion, Josh Peleg, Head of Biz Dev for Mergers and Acquisitions at BlueThrone, shares his expertise on selling indie businesses. He breaks down how to identify potential buyers and what sellers need to do to prepare their products for acquisition. Josh highlights key indicators in assessing acquirers, elaborates on various types of business exits, and stresses the significance of strong networking. He also recommends insightful resources for indie entrepreneurs looking to navigate their own selling journey.
Indie hackers should cultivate relationships with potential acquirers through online presence and industry engagements to enhance their visibility.
Assessing acquirers for red flags and positive indicators is crucial to ensuring a good fit and potential for business growth post-exit.
Deep dives
The Role of Acquirers in Supporting Indie Hackers
Acquirers like Blue Throne not only purchase indie apps but also provide essential support to help founders overcome challenges after acquisition. Many indie hackers face difficulties such as community management and customer support as their user base grows, which can hinder their progression. By acquiring these businesses, Blue Throne offers solutions like community management teams to resolve these issues effectively, allowing founders to focus on scaling their products. This support can be crucial in helping indie products transition smoothly from early-stage growth to more substantial market presence.
Strategies for Attracting Potential Acquirers
To increase visibility to potential acquirers, indie hackers should maintain an online presence, particularly through platforms like LinkedIn. It's important to cultivate relationships with potential buyers even before considering an exit; attending industry conferences can facilitate meaningful connections. Additionally, building rapport with venture capitalists can open doors to introductions with relevant acquirers who may have liquidity for transactions. By proactively marketing themselves and their products, indie hackers can enhance their chances of being noticed by interested parties.
Evaluating Acquirers: Red Flags and Green Flags
When assessing potential acquirers, founders should conduct thorough research to identify red flags that may indicate a problematic fit. Key indicators include the acquirer's past acquisition outcomes and whether those companies have seen growth post-acquisition, signifying that the acquirer is committed to nurturing their investments. Positive attributes include signs of profitability, increased headcount, and recent fundraising activities, as these indicate financial stability and capacity for further growth. Gathering feedback from founders of previously acquired companies can provide valuable insights into the culture and operational style of potential acquirers.
Today I’m not actually joined by an indie hacker, but by someone who can help a lot of indies out there. Josh Peleg is the Head of Biz Dev and Mergers and Acquisitions at BlueThrone. Essentially, he knows all about how to sell a business from the buyer's side.
In this episode we’re going to learn from Josh exactly what you need to know about selling your indie product. How you find an acquirer, what does the process look like and how you can get a deal over the line.
I’ve spoken to some indie hackers who have gone through exits, such as Rob Walling, Ramy Khuffash, Tibo Louis Lucas and more, but not so much from the other side. Let’s find out what it takes.
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