Financing lined up first
“The initial two acquisitions were 100% my own cash, and then we actually started to tap into financing sources, but it was always super important for us to have the financing lined up before the deal”
Founder conversationUnicorn $50m+
How SaaS Group Reached $60M ARR Buying 20 SaaS Companies With Debt, Cash and Equity
Tim Schumacher explains how SaaS Group funds acquisitions from its balance sheet, buys 100% of each company and keeps it forever.
Tim Schumacher · SaaS Group
Published August 29, 2024About this resource
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What you’ll learn
Tim Schumacher, CEO of SaaS Group, explains how the serial acquirer bought about 20 SaaS companies representing roughly $60M of ARR. He covers how deals are financed with a credit line, operating cash flow and a $25M equity round, why SaaS Group buys 100% of each business and keeps it indefinitely, and how earn-outs, bankruptcy purchases and post-deal improvements work.
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Preserving acquired companies
“We wanna preserve the legacy of the founder. We wanna preserve the name, preserve what made the company strong.”
Halving DashThis paid spend
“One of the first things were we slashed their Google paid accounts in half. So we basically slashed their budget in in half, but we doubled the output.”
Why earn-outs work
“an earn out is really great because it shares risk. We can pay more.”
Typical multiple: 2-4x ARR
“Eight or nine x is very rare. I think we did this one on a very small deal which had strategic importance, and was growing very fast.”
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Tim Schumacher
CEO · SaaS Group
- Company revenue
- $60M
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