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Feb 7, 2023 · 25m · startup-acquisition-stories

Startup Acquisition Stories with Derek Morin and Radu Bogdan, Founders of Tabarnapp

Derek Morin · 13m spoken Andrew Gazdecki · 7m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of Startup Acquisition Stories, host Andrew Gazdecki interviews Tabarnapp co-founders Derek Morin and Radu Bogdan about bootstrapping their Shopify app portfolio, navigating a multi-asset acquisition with a broker, and pivoting toward acquisition entrepreneurship.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Andrew holds 30.8% of the talking time here. How this is scored →

Andrew as informed peer 4.7 Guest teaching 1.8 Guest disagreement 0.2 Andrew pushing back 0.2
05100:0010:0020:000:24–2:58 · Andrew as informed peer 4/10 The Genesis and Early Growth of Tabarnapp Derek and Bogdan describe how they met online and built an automated Shopify discount app that gained 1,000 customers in a few months. Andrew notes that this is clear product-market fit, which Derek humorously admits they were too inexperienced to even recognize at the time.2:58–8:41 · Andrew as informed peer 6/10 Navigating App Sales and Selecting Acquisition Channels Derek shares their journey selling a smaller app on MicroAcquire and subsequently using an M&A broker who also listed on the platform. Andrew clarifies industry dynamics, explaining what a CIM is and how MicroAcquire actually partners with brokers for larger transactions.8:41–13:26 · Andrew as informed peer 5/10 The Emotional Toll and Value of Broker Expertise Bogdan and Derek explain their differing initial reactions to hiring a broker as training wheels versus handing their business over to a stranger. Andrew validates their emotional experience and affirms the value of professional advisory for life-changing deals.13:26–18:39 · Andrew as informed peer 7/10 Key Founder Advice: Preparing for Exit from Day One The founders share tactical advice regarding early documentation, testing, and replacing founders before sale. Andrew shares detailed insights from his own previous exit on why CEOs must make themselves redundant to increase valuation and preserve sanity.18:40–24:03 · Andrew as informed peer 5/10 Post-Acquisition Transition and Exploring Future Acquisitions Derek and Bogdan discuss their post-acquisition transition and express an interest in buying an established app rather than building from zero. Andrew endorses this strategy, explaining how acquiring product-market fit lets experienced founders focus strictly on scaling.24:04–25:19 · Andrew as informed peer 1/10 Connecting with the Founders and Final Remarks The episode wraps up with self-deprecating banter about outdated LinkedIn profiles and lack of social media presence before Andrew signs off.0:24–2:58 · Guest teaching 2/10 The Genesis and Early Growth of Tabarnapp Derek and Bogdan describe how they met online and built an automated Shopify discount app that gained 1,000 customers in a few months. Andrew notes that this is clear product-market fit, which Derek humorously admits they were too inexperienced to even recognize at the time.2:58–8:41 · Guest teaching 3/10 Navigating App Sales and Selecting Acquisition Channels Derek shares their journey selling a smaller app on MicroAcquire and subsequently using an M&A broker who also listed on the platform. Andrew clarifies industry dynamics, explaining what a CIM is and how MicroAcquire actually partners with brokers for larger transactions.8:41–13:26 · Guest teaching 2/10 The Emotional Toll and Value of Broker Expertise Bogdan and Derek explain their differing initial reactions to hiring a broker as training wheels versus handing their business over to a stranger. Andrew validates their emotional experience and affirms the value of professional advisory for life-changing deals.13:26–18:39 · Guest teaching 3/10 Key Founder Advice: Preparing for Exit from Day One The founders share tactical advice regarding early documentation, testing, and replacing founders before sale. Andrew shares detailed insights from his own previous exit on why CEOs must make themselves redundant to increase valuation and preserve sanity.18:40–24:03 · Guest teaching 1/10 Post-Acquisition Transition and Exploring Future Acquisitions Derek and Bogdan discuss their post-acquisition transition and express an interest in buying an established app rather than building from zero. Andrew endorses this strategy, explaining how acquiring product-market fit lets experienced founders focus strictly on scaling.24:04–25:19 · Guest teaching 0/10 Connecting with the Founders and Final Remarks The episode wraps up with self-deprecating banter about outdated LinkedIn profiles and lack of social media presence before Andrew signs off.0:24–2:58 · Guest disagreement 0/10 The Genesis and Early Growth of Tabarnapp Derek and Bogdan describe how they met online and built an automated Shopify discount app that gained 1,000 customers in a few months. Andrew notes that this is clear product-market fit, which Derek humorously admits they were too inexperienced to even recognize at the time.2:58–8:41 · Guest disagreement 1/10 Navigating App Sales and Selecting Acquisition Channels Derek shares their journey selling a smaller app on MicroAcquire and subsequently using an M&A broker who also listed on the platform. Andrew clarifies industry dynamics, explaining what a CIM is and how MicroAcquire actually partners with brokers for larger transactions.8:41–13:26 · Guest disagreement 0/10 The Emotional Toll and Value of Broker Expertise Bogdan and Derek explain their differing initial reactions to hiring a broker as training wheels versus handing their business over to a stranger. Andrew validates their emotional experience and affirms the value of professional advisory for life-changing deals.13:26–18:39 · Guest disagreement 0/10 Key Founder Advice: Preparing for Exit from Day One The founders share tactical advice regarding early documentation, testing, and replacing founders before sale. Andrew shares detailed insights from his own previous exit on why CEOs must make themselves redundant to increase valuation and preserve sanity.18:40–24:03 · Guest disagreement 0/10 Post-Acquisition Transition and Exploring Future Acquisitions Derek and Bogdan discuss their post-acquisition transition and express an interest in buying an established app rather than building from zero. Andrew endorses this strategy, explaining how acquiring product-market fit lets experienced founders focus strictly on scaling.24:04–25:19 · Guest disagreement 0/10 Connecting with the Founders and Final Remarks The episode wraps up with self-deprecating banter about outdated LinkedIn profiles and lack of social media presence before Andrew signs off.0:24–2:58 · Andrew pushing back 0/10 The Genesis and Early Growth of Tabarnapp Derek and Bogdan describe how they met online and built an automated Shopify discount app that gained 1,000 customers in a few months. Andrew notes that this is clear product-market fit, which Derek humorously admits they were too inexperienced to even recognize at the time.2:58–8:41 · Andrew pushing back 1/10 Navigating App Sales and Selecting Acquisition Channels Derek shares their journey selling a smaller app on MicroAcquire and subsequently using an M&A broker who also listed on the platform. Andrew clarifies industry dynamics, explaining what a CIM is and how MicroAcquire actually partners with brokers for larger transactions.8:41–13:26 · Andrew pushing back 0/10 The Emotional Toll and Value of Broker Expertise Bogdan and Derek explain their differing initial reactions to hiring a broker as training wheels versus handing their business over to a stranger. Andrew validates their emotional experience and affirms the value of professional advisory for life-changing deals.13:26–18:39 · Andrew pushing back 0/10 Key Founder Advice: Preparing for Exit from Day One The founders share tactical advice regarding early documentation, testing, and replacing founders before sale. Andrew shares detailed insights from his own previous exit on why CEOs must make themselves redundant to increase valuation and preserve sanity.18:40–24:03 · Andrew pushing back 0/10 Post-Acquisition Transition and Exploring Future Acquisitions Derek and Bogdan discuss their post-acquisition transition and express an interest in buying an established app rather than building from zero. Andrew endorses this strategy, explaining how acquiring product-market fit lets experienced founders focus strictly on scaling.24:04–25:19 · Andrew pushing back 0/10 Connecting with the Founders and Final Remarks The episode wraps up with self-deprecating banter about outdated LinkedIn profiles and lack of social media presence before Andrew signs off.

speaking balance: gold is Andrew, purple is the guest (3 minute bins)

0:00 · Andrew 20.2% · guest 79.8%0:00 · Andrew 20.2% · guest 79.8%3:00 · Andrew 10.3% · guest 89.7%3:00 · Andrew 10.3% · guest 89.7%6:00 · Andrew 48.4% · guest 51.6%6:00 · Andrew 48.4% · guest 51.6%9:00 · Andrew 0% · guest 100%9:00 · Andrew 0% · guest 100%12:00 · Andrew 41.8% · guest 58.2%12:00 · Andrew 41.8% · guest 58.2%15:00 · Andrew 39.2% · guest 60.8%15:00 · Andrew 39.2% · guest 60.8%18:00 · Andrew 53% · guest 47%18:00 · Andrew 53% · guest 47%21:00 · Andrew 31.7% · guest 68.3%21:00 · Andrew 31.7% · guest 68.3%24:00 · Andrew 34% · guest 66%24:00 · Andrew 34% · guest 66%
Sharpest disagreement ▶ 5:40 Derek points out broker platform irony

Derek playfully points out the apparent contradiction of a broker listing on MicroAcquire, a platform he believed was founded specifically to bypass brokers.

 Hardest push from Andrew ▶ 7:14 Andrew clarifies platform support for brokers

Andrew gently corrects the assumption that his marketplace is anti-broker by detailing how they partner with M&A advisors and actively recommend them for high-value exits.

 Biggest teaching moment ▶ 2:21 Founders on achieving accidental traction

Derek educates listeners and the host by sharing that despite achieving massive customer adoption, they had zero business terminology awareness and completely neglected product-market fit.

 Andrew holds their own ▶ 17:46 Andrew articulates founder redundancy framework

Andrew demonstrates his seasoned M&A and operator expertise by laying out a three-part framework on why delegating everything makes a company easier to sell and faster to scale.
the scores for every segment, with the reasoning behind each
ChapterTopicAndrew as informed peerGuest teachingGuest disagreementAndrew pushing backWhy
The Genesis and Early Growth of Tabarnapp 4200 Derek and Bogdan describe how they met online and built an automated Shopify discount app that gained 1,000 customers in a few months. Andrew notes that this is clear product-market fit, which Derek humorously admits they were too inexperienced to even recognize at the time.
Navigating App Sales and Selecting Acquisition Channels 6311 Derek shares their journey selling a smaller app on MicroAcquire and subsequently using an M&A broker who also listed on the platform. Andrew clarifies industry dynamics, explaining what a CIM is and how MicroAcquire actually partners with brokers for larger transactions.
The Emotional Toll and Value of Broker Expertise 5200 Bogdan and Derek explain their differing initial reactions to hiring a broker as training wheels versus handing their business over to a stranger. Andrew validates their emotional experience and affirms the value of professional advisory for life-changing deals.
Key Founder Advice: Preparing for Exit from Day One 7300 The founders share tactical advice regarding early documentation, testing, and replacing founders before sale. Andrew shares detailed insights from his own previous exit on why CEOs must make themselves redundant to increase valuation and preserve sanity.
Post-Acquisition Transition and Exploring Future Acquisitions 5100 Derek and Bogdan discuss their post-acquisition transition and express an interest in buying an established app rather than building from zero. Andrew endorses this strategy, explaining how acquiring product-market fit lets experienced founders focus strictly on scaling.
Connecting with the Founders and Final Remarks 1000 The episode wraps up with self-deprecating banter about outdated LinkedIn profiles and lack of social media presence before Andrew signs off.

Statements from this episode (6)

Assertion Not checkable as stated
Tabarnapp's first Shopify app gained 1,000 paying customers in four months
“And then, in 2016, we've built our first Shopify app. It was called Automatic Discount. We've noticed like in the forums everyone was complaining, like why is Shopify not able to do something very simple as automated a discount based on what's in the cart. So …”
Derek Morin Feb 7, 2023 ▶ 1:19
Disclosure
E-commerce aggregator Staytuned acquired Tabarnapp in early 2023
“And well, long story short, we sold like two weeks ago to a company called Stay Tunic.”
Derek Morin Feb 7, 2023 ▶ 1:54
Disclosure
Tabarnapp sold a doomed side application for $40,000 on MicroAcquire
“The smaller transaction of 40,000 US or something like that on microacquire was like, for us, more like a bonus. We didn't expect that. We were about to, I mean, sorry for the person who purchased that, that listens to the podcast, but we were about to shut it…”
Derek Morin Feb 7, 2023 ▶ 9:49
Assertion Not checkable as stated
Tabarnapp's flagship application generated 92% of the company's total revenue
“Selling our biggest app was Almost 92% of all the revenues in one app.”
Derek Morin Feb 7, 2023 ▶ 10:45
Assertion Not checkable as stated
Tabarnapp received three separate acquisition offers for its core business
“During the negotiation, because we got three different offers.”
Derek Morin Feb 7, 2023 ▶ 12:22
Insight
Founders should operationally replace themselves a year before selling their company
“If we would have, if we would redo that, I think Bogdan and I would just try to replace ourselves at least a year before we actually sell the business just to make it more easy to transfer and to also shorten the period that because we will stay with them unti…”
Derek Morin Feb 7, 2023 ▶ 16:02
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