How Positioning & Go to Market Impacts Agency Valuation, With Shiv Narayanan

6 snips

Sep 18, 2024

Shiv Narayanan, an expert in SaaS marketing and former entrepreneur, discusses his journey in building and selling companies. He emphasizes the power of strategic positioning and its impact on agency valuation. Shiv highlights the importance of focusing on ideal clients for predictable revenue and the benefits of specialization in niche markets. He also shares insights on preparing businesses for exit by ensuring operational efficiency and revenue stability. A must-listen for entrepreneurs seeking to enhance their market appeal!

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Episode notes

Intro

00:00 • 2min

Navigating M&A Marketing for Private Equity

02:29 • 15min

The Impact of Positioning on Agency Valuation

16:59 • 3min

Strategic Positioning in the Agency Market

19:57 • 10min

Navigating Post-Exit Strategies for Agency Growth

30:15 • 5min

Exploring Effective Marketing Strategies for Agency Growth

34:54 • 2min

Points of Interest

00:49 – 01:52 – Shiv's Background: Shiv shares his journey from building and selling a company to now running How To SaaS, where he works with private equity investors and software companies on marketing strategies.
01:53 – 02:51 – Marketing for Private Equity: Shiv explains his company’s focus on providing marketing due diligence, strategy consulting, and fractional CMO services to private equity firms and software companies.
02:52 – 03:41 – The Power of Positioning: Marcel highlights the uniqueness of Shiv’s focus on private equity, differentiating How to SaaS in the market by addressing specific investor needs.
06:06 – 07:40 – Product Market Fit: Shiv talks about the creation of a new market category—marketing due diligence—and how this focus on strategy over tactics helped his firm differentiate itself.
07:41 – 09:05 – Preparing for Exit: Shiv explains how businesses should prepare for a sale by focusing on predictable revenue, reducing customer concentration, and ensuring operational efficiency to appeal to buyers.
9:06 – 12:02 – Identifying Ideal Clients: Shiv emphasizes the need to focus on ideal customers who bring in scalable, predictable revenue and why saying no to less ideal clients is key to long-term success.
12:03 – 15:57 – Strategic Specialization: Shiv highlights how specializing in a narrow, focused market can lead to higher margins, better client retention, and an overall increase in business valuation.
15:58 – 21:38 – Internal Efficiency and Gross Margins: Marcel and Shiv discuss how internal specialization and optimizing gross margins can make an agency more profitable and attractive for acquisition.
21:39 – 27:25 – The Importance of Sales Conversations: Shiv stresses the importance of clear sales processes and managing client expectations upfront, ensuring alignment with the agency’s focused services.
27:26 – 34:50 – Post-Acquisition Strategy: Shiv outlines how post-acquisition marketing strategies must align with the new owner’s goals, focusing on budget efficiency, strategic cross-selling opportunities, and operational improvements to drive value.

Show Notes

Shiv’s Website: https://www.howtosaas.com/
Shiv's LinkedIn
New Book: Exit-Ready Marketing
Old Book: Post-Acquisition Marketing

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