The Official SaaStr Podcast: SaaS | Founders | Investors SaaStr 775: If You Fall Off the Venture Track, At Least Stay on The PE Track with Andy Wilson CEO Logikcull and SaaStr CEO Jason Lemkin
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Nov 15, 2024 Andy Wilson, CEO of Logikcull and a SaaS expert who successfully sold his company to a private equity firm, shares his journey in navigating the PE track. He discusses transitioning from hypergrowth to sustainable strategies and the key factors that attract private equity interest. Listeners learn about aligning team incentives, the importance of cash flow management, and the intricate role of investment bankers in maximizing sale outcomes. Wilson emphasizes the value of direct CEO-to-CEO communication during negotiations and offers actionable insights for founders.
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Logikcull's Growth Journey
- Andy Wilson shares Logikcull's journey from rapid, uncontrolled growth to two years of flat growth while burning cash.
- They re-engineered the business model, executive team, and parts of the culture, eventually re-accelerating growth and becoming cash-flow positive.
Avoid SaaS Sluggishness
- Avoid becoming complacent with slow growth (15-20%).
- Strive for re-acceleration rather than settling for mediocrity, even if it means 0% growth while actively working on improvements.
Inbound PE Interest
- Private equity firms actively seek out companies that are structurally attractive.
- If your company surpasses around $20M ARR with reasonable growth and profitability, expect inbound interest.