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May 31, 2022 · 27m · startup-acquisition-stories

Startup Acquisition Stories with David Horne & Marty Balkema - Co-founders at Calm Capital

Marty Balkema · 10m spoken Andrew Gazdecki · 8m spoken David Horne · 5m spoken
0:00 / 0:00

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

Calm Capital co-founders David Horne and Marty Balkema join Andrew Gazdecki on SaaS Acquisition Stories to share their holding company investment criteria, operational advice for founders preparing to sell, and long-term vision for sustainable software stewardship.

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 32% of the talking time here. How this is scored →

Andrew as informed peer 4.4 Guest teaching 1.4 Guest disagreement 0.2 Andrew pushing back 0.2
05100:0010:0020:000:54–3:01 · Andrew as informed peer 2/10 Calm Capital Background and Holding Company Model Andrew sets up the interview with an open-ended invitation for Marty and David to give their background. Marty provides a straightforward summary of their holding company model and prior acquisitions without friction.3:01–8:33 · Andrew as informed peer 4/10 Acquisition Criteria and the Three Ps Framework Andrew tries to prompt a hypothetical dream target, but Marty gently redirects away from specific niches to core business fundamentals like operating-system status and cash flow. David then outlines their 'Three Ps' investment philosophy.8:34–15:55 · Andrew as informed peer 6/10 Key Advice and Preparation Strategies for Sellers Marty and David lay out tactical preparation tips for sellers, while Andrew actively reinforces the points with his own marketplace experience regarding P&L clarity and upfront founder expectations.15:56–19:55 · Andrew as informed peer 2/10 Case Study: Sourcing and Acquiring Wave Marty shares the narrative of sourcing Wave via IndieHackers using a college intern's target list and negotiating the acquisition over Slack. Andrew listens and prompts a product description.19:56–25:58 · Andrew as informed peer 8/10 Market Outlook and Entrepreneurship Through Acquisition David explicitly turns the table and asks Andrew to 'school us' on market trends. Andrew delivers an extensive analysis of micro-PE expansion, entrepreneurship through acquisition, and the handoff between zero-to-one builders and scalers.0:54–3:01 · Guest teaching 1/10 Calm Capital Background and Holding Company Model Andrew sets up the interview with an open-ended invitation for Marty and David to give their background. Marty provides a straightforward summary of their holding company model and prior acquisitions without friction.3:01–8:33 · Guest teaching 3/10 Acquisition Criteria and the Three Ps Framework Andrew tries to prompt a hypothetical dream target, but Marty gently redirects away from specific niches to core business fundamentals like operating-system status and cash flow. David then outlines their 'Three Ps' investment philosophy.8:34–15:55 · Guest teaching 2/10 Key Advice and Preparation Strategies for Sellers Marty and David lay out tactical preparation tips for sellers, while Andrew actively reinforces the points with his own marketplace experience regarding P&L clarity and upfront founder expectations.15:56–19:55 · Guest teaching 1/10 Case Study: Sourcing and Acquiring Wave Marty shares the narrative of sourcing Wave via IndieHackers using a college intern's target list and negotiating the acquisition over Slack. Andrew listens and prompts a product description.19:56–25:58 · Guest teaching 0/10 Market Outlook and Entrepreneurship Through Acquisition David explicitly turns the table and asks Andrew to 'school us' on market trends. Andrew delivers an extensive analysis of micro-PE expansion, entrepreneurship through acquisition, and the handoff between zero-to-one builders and scalers.0:54–3:01 · Guest disagreement 0/10 Calm Capital Background and Holding Company Model Andrew sets up the interview with an open-ended invitation for Marty and David to give their background. Marty provides a straightforward summary of their holding company model and prior acquisitions without friction.3:01–8:33 · Guest disagreement 1/10 Acquisition Criteria and the Three Ps Framework Andrew tries to prompt a hypothetical dream target, but Marty gently redirects away from specific niches to core business fundamentals like operating-system status and cash flow. David then outlines their 'Three Ps' investment philosophy.8:34–15:55 · Guest disagreement 0/10 Key Advice and Preparation Strategies for Sellers Marty and David lay out tactical preparation tips for sellers, while Andrew actively reinforces the points with his own marketplace experience regarding P&L clarity and upfront founder expectations.15:56–19:55 · Guest disagreement 0/10 Case Study: Sourcing and Acquiring Wave Marty shares the narrative of sourcing Wave via IndieHackers using a college intern's target list and negotiating the acquisition over Slack. Andrew listens and prompts a product description.19:56–25:58 · Guest disagreement 0/10 Market Outlook and Entrepreneurship Through Acquisition David explicitly turns the table and asks Andrew to 'school us' on market trends. Andrew delivers an extensive analysis of micro-PE expansion, entrepreneurship through acquisition, and the handoff between zero-to-one builders and scalers.0:54–3:01 · Andrew pushing back 0/10 Calm Capital Background and Holding Company Model Andrew sets up the interview with an open-ended invitation for Marty and David to give their background. Marty provides a straightforward summary of their holding company model and prior acquisitions without friction.3:01–8:33 · Andrew pushing back 1/10 Acquisition Criteria and the Three Ps Framework Andrew tries to prompt a hypothetical dream target, but Marty gently redirects away from specific niches to core business fundamentals like operating-system status and cash flow. David then outlines their 'Three Ps' investment philosophy.8:34–15:55 · Andrew pushing back 0/10 Key Advice and Preparation Strategies for Sellers Marty and David lay out tactical preparation tips for sellers, while Andrew actively reinforces the points with his own marketplace experience regarding P&L clarity and upfront founder expectations.15:56–19:55 · Andrew pushing back 0/10 Case Study: Sourcing and Acquiring Wave Marty shares the narrative of sourcing Wave via IndieHackers using a college intern's target list and negotiating the acquisition over Slack. Andrew listens and prompts a product description.19:56–25:58 · Andrew pushing back 0/10 Market Outlook and Entrepreneurship Through Acquisition David explicitly turns the table and asks Andrew to 'school us' on market trends. Andrew delivers an extensive analysis of micro-PE expansion, entrepreneurship through acquisition, and the handoff between zero-to-one builders and scalers.

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

0:00 · Andrew 25.5% · guest 74.5%0:00 · Andrew 25.5% · guest 74.5%3:00 · Andrew 34.7% · guest 65.3%3:00 · Andrew 34.7% · guest 65.3%6:00 · Andrew 27.6% · guest 72.4%6:00 · Andrew 27.6% · guest 72.4%9:00 · Andrew 1.9% · guest 98.1%9:00 · Andrew 1.9% · guest 98.1%12:00 · Andrew 47.9% · guest 52.1%12:00 · Andrew 47.9% · guest 52.1%15:00 · Andrew 29% · guest 71%15:00 · Andrew 29% · guest 71%18:00 · Andrew 26.1% · guest 73.9%18:00 · Andrew 26.1% · guest 73.9%21:00 · Andrew 66% · guest 34%21:00 · Andrew 66% · guest 34%24:00 · Andrew 31.9% · guest 68.1%24:00 · Andrew 31.9% · guest 68.1%27:00 · Andrew 0% · guest 100%27:00 · Andrew 0% · guest 100%
Sharpest disagreement ▶ 5:12 Marty sidesteps hypothetical niche prompt

Marty politely rejects Andrew's framing of choosing a specific fantasy industry niche, clarifying that Calm Capital focuses strictly on cash flow and essential utility instead.

 Hardest push from Andrew ▶ 4:22 Andrew presses for a concrete acquisition profile

Andrew refuses a generic answer by pushing the guests to construct a specific hypothetical target including size, profitability, and industry.

 Biggest teaching moment ▶ 3:13 David breaks down good vs great businesses

David explains their foundational thesis that good cash-flowing businesses rarely fail whereas 'great' ambitious companies often do, outlining their management retention model.

 Andrew holds their own ▶ 21:48 Andrew delivers market trend monologue

When invited to share his view, Andrew demonstrates deep industry expertise on shifting founder awareness and the rapid growth of non-traditional private equity buyers.
the scores for every segment, with the reasoning behind each
ChapterTopicAndrew as informed peerGuest teachingGuest disagreementAndrew pushing backWhy
Calm Capital Background and Holding Company Model 2100 Andrew sets up the interview with an open-ended invitation for Marty and David to give their background. Marty provides a straightforward summary of their holding company model and prior acquisitions without friction.
Acquisition Criteria and the Three Ps Framework 4311 Andrew tries to prompt a hypothetical dream target, but Marty gently redirects away from specific niches to core business fundamentals like operating-system status and cash flow. David then outlines their 'Three Ps' investment philosophy.
Key Advice and Preparation Strategies for Sellers 6200 Marty and David lay out tactical preparation tips for sellers, while Andrew actively reinforces the points with his own marketplace experience regarding P&L clarity and upfront founder expectations.
Case Study: Sourcing and Acquiring Wave 2100 Marty shares the narrative of sourcing Wave via IndieHackers using a college intern's target list and negotiating the acquisition over Slack. Andrew listens and prompts a product description.
Market Outlook and Entrepreneurship Through Acquisition 8000 David explicitly turns the table and asks Andrew to 'school us' on market trends. Andrew delivers an extensive analysis of micro-PE expansion, entrepreneurship through acquisition, and the handoff between zero-to-one builders and scalers.

Statements from this episode (7)

Disclosure
Calm Capital acquired four digital micro-businesses in two years
“And then since then, in the last two years, we've We funded a Shopify app business. We bought a WordPress theme business. We bought a content UI design business subscription business. And then last year we bought a SAS company that helps audio creators market …”
Marty Balkema May 31, 2022 ▶ 2:29
Insight
Good cash-flowing businesses rarely fail, but great companies often do
“Good businesses rarely go out of business. Great companies sometimes go out of business, but good businesses rarely go out of business, so, you know, profitable, cash flowing, pretty easy to manage, has, you know, some kind of growth trajectory versus going ba…”
David Horne May 31, 2022 ▶ 3:18
Insight
Acquiring small companies requires the same effort as much larger deals
“The same amount of work that it takes to find and acquire and finance you know like wave, the last business, you know, we probably could have done that same amount of work and bought something that was, you know, two or three times As big.”
Marty Balkema May 31, 2022 ▶ 5:34
Disclosure
Calm Capital targets essential operating software rather than optional add-on tools
“I think our ideal business we're learning is, is it needs to be like a, an essential business, like a, like the operating system, not an add-on, if you will. So not a business that people can choose to use or not as a, like as a SaaS tool, but a business that …”
Marty Balkema May 31, 2022 ▶ 6:27
Disclosure
Calm Capital negotiated the entire Wave acquisition over a shared Slack channel
“We negotiated the entire deal directly with them over Slack. So after the first call, we started a Slack channel shared Slack channel, and we started I mean, I don't know, probably, David, from, what, Thanksgiving to the end of March is when we closed, so, you…”
Marty Balkema May 31, 2022 ▶ 18:18
Prediction Not checkable as stated
First-time buyers will drive a surge in micro-PE acquisition activity
“I think we're going to see a lot more just general private equity activity specifically from first time buyers, like people, you know, just hearing about the success of like, You know, basically you know, entrepreneurship through acquisition is, is really beco…”
Andrew Gazdecki May 31, 2022 ▶ 21:48
Prediction Not checkable as stated
Successive stewardship will eventually create 100-year-old SaaS businesses
“There will be a time where you can look at a SaaS company and be like, that's a hundred year old SaaS business, and it's going to take, you know, a bunch of different people to kind of keep that going, and hopefully continue to add value to the community it se…”
David Horne May 31, 2022 ▶ 25:32
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