Business Buying Academy Learn to Buy Businesses - Deal Maker Brian Wolfe
Apr 11, 2025
Brian Wolfe, an M&A expert and former big law firm partner, shares his wealth of knowledge about entrepreneurship through acquisition. He discusses his transition from law to investing, emphasizing the power of multiple expansion in buying smaller companies. Wolfe dives into rolling up marketing SaaS businesses, the role of seller financing, and the complexities of earnouts in M&A. He also provides insights on strategic growth and offers valuable lessons on personal guarantees, showcasing how mentorship can guide first-time buyers.
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Power of Multiple Expansion
- Multiple expansion significantly boosts equity returns when selling a platform business.
- Smaller businesses are bought at lower multiples, but scaling lifts valuation multiples dramatically.
From Lawyer to SaaS Investor
- Brian Wolfe transitioned from a law firm partner to an active principal buying downmarket businesses.
- He partnered with a former SaaS founder to pursue roll-ups of small SaaS companies.
SaaS Growth Drives Valuation
- Many bootstrapped SaaS founders run their businesses like annuities, extracting cash instead of investing in growth.
- Driving organic growth from 1-3% to 20-25% can justify much higher valuation multiples.