StarZero All shows Try the podcast clipper →

Apr 19, 2022 · 15m · startup-acquisition-stories

Startup Acquisition Stories with Dirk Sahlmer - M&A Manager at saas.group

Dirk Sahlmer · 8m spoken Andrew Gazdecki · 4m 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 SaaS Acquisition Stories, host Andrew Gazdecki interviews Dirk Sahlmer from SaaS Group to explore micro-private equity, ideal acquisition profiles for $1M–$10M ARR software businesses, and strategic guidance for founders planning an exit.

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 33.8% of the talking time here. How this is scored →

Andrew as informed peer 3.5 Guest teaching 1.7 Guest disagreement 0.0 Andrew pushing back 0.0
05100:0010:000:24–2:49 · Andrew as informed peer 3/10 Founding Mission and Overview of SaaS Group Dirk outlines SaaS Group's origin as a home for bootstrapped SaaS founders and recounts his transition from automotive hardware engineering. Andrew warmly validates his background and relates to learning through startup failure.2:51–4:58 · Andrew as informed peer 2/10 SaaS Group's Target Criteria and Acquisition Philosophy Dirk details SaaS Group's target criteria of $1M to $10M ARR in horizontal SaaS and their flexibility regarding founder retention post-acquisition. Andrew guides the inquiry into ideal deal traits.4:59–7:34 · Andrew as informed peer 4/10 Strategic Advice for Founders Preparing to Sell Dirk explains how founders should reflect on their personal goals and how acquisitions can free technical founders from administrative chores. Andrew expands on the advice, underscoring the necessity of clarifying target outcomes.7:35–9:40 · Andrew as informed peer 3/10 Notable Acquisition Case Studies: Rewardful and Git Tower Dirk shares case studies of acquiring Rewardful after an 18-month dialogue and closing Git Tower. Andrew underscores the strategic value of initiating buyer-founder relationships long before exiting.9:41–11:55 · Andrew as informed peer 5/10 Industry Predictions and the Rise of Micro-Acquisitions Dirk discusses the growth of micro-acquisitions and praises MicroAcquire's educational impact. Andrew demonstrates industry expertise by detailing how no-code tools evolve into custom code as startups scale.11:56–14:26 · Andrew as informed peer 4/10 Rapid-Fire Questions: Role Models and Recommended Books Dirk answers rapid-fire questions by praising risk-taking founders and recommending 'Buy Then Build'. Andrew endorses the book recommendation, citing it as one of his personal top 10 acquisition resources.0:24–2:49 · Guest teaching 2/10 Founding Mission and Overview of SaaS Group Dirk outlines SaaS Group's origin as a home for bootstrapped SaaS founders and recounts his transition from automotive hardware engineering. Andrew warmly validates his background and relates to learning through startup failure.2:51–4:58 · Guest teaching 2/10 SaaS Group's Target Criteria and Acquisition Philosophy Dirk details SaaS Group's target criteria of $1M to $10M ARR in horizontal SaaS and their flexibility regarding founder retention post-acquisition. Andrew guides the inquiry into ideal deal traits.4:59–7:34 · Guest teaching 2/10 Strategic Advice for Founders Preparing to Sell Dirk explains how founders should reflect on their personal goals and how acquisitions can free technical founders from administrative chores. Andrew expands on the advice, underscoring the necessity of clarifying target outcomes.7:35–9:40 · Guest teaching 2/10 Notable Acquisition Case Studies: Rewardful and Git Tower Dirk shares case studies of acquiring Rewardful after an 18-month dialogue and closing Git Tower. Andrew underscores the strategic value of initiating buyer-founder relationships long before exiting.9:41–11:55 · Guest teaching 1/10 Industry Predictions and the Rise of Micro-Acquisitions Dirk discusses the growth of micro-acquisitions and praises MicroAcquire's educational impact. Andrew demonstrates industry expertise by detailing how no-code tools evolve into custom code as startups scale.11:56–14:26 · Guest teaching 1/10 Rapid-Fire Questions: Role Models and Recommended Books Dirk answers rapid-fire questions by praising risk-taking founders and recommending 'Buy Then Build'. Andrew endorses the book recommendation, citing it as one of his personal top 10 acquisition resources.0:24–2:49 · Guest disagreement 0/10 Founding Mission and Overview of SaaS Group Dirk outlines SaaS Group's origin as a home for bootstrapped SaaS founders and recounts his transition from automotive hardware engineering. Andrew warmly validates his background and relates to learning through startup failure.2:51–4:58 · Guest disagreement 0/10 SaaS Group's Target Criteria and Acquisition Philosophy Dirk details SaaS Group's target criteria of $1M to $10M ARR in horizontal SaaS and their flexibility regarding founder retention post-acquisition. Andrew guides the inquiry into ideal deal traits.4:59–7:34 · Guest disagreement 0/10 Strategic Advice for Founders Preparing to Sell Dirk explains how founders should reflect on their personal goals and how acquisitions can free technical founders from administrative chores. Andrew expands on the advice, underscoring the necessity of clarifying target outcomes.7:35–9:40 · Guest disagreement 0/10 Notable Acquisition Case Studies: Rewardful and Git Tower Dirk shares case studies of acquiring Rewardful after an 18-month dialogue and closing Git Tower. Andrew underscores the strategic value of initiating buyer-founder relationships long before exiting.9:41–11:55 · Guest disagreement 0/10 Industry Predictions and the Rise of Micro-Acquisitions Dirk discusses the growth of micro-acquisitions and praises MicroAcquire's educational impact. Andrew demonstrates industry expertise by detailing how no-code tools evolve into custom code as startups scale.11:56–14:26 · Guest disagreement 0/10 Rapid-Fire Questions: Role Models and Recommended Books Dirk answers rapid-fire questions by praising risk-taking founders and recommending 'Buy Then Build'. Andrew endorses the book recommendation, citing it as one of his personal top 10 acquisition resources.0:24–2:49 · Andrew pushing back 0/10 Founding Mission and Overview of SaaS Group Dirk outlines SaaS Group's origin as a home for bootstrapped SaaS founders and recounts his transition from automotive hardware engineering. Andrew warmly validates his background and relates to learning through startup failure.2:51–4:58 · Andrew pushing back 0/10 SaaS Group's Target Criteria and Acquisition Philosophy Dirk details SaaS Group's target criteria of $1M to $10M ARR in horizontal SaaS and their flexibility regarding founder retention post-acquisition. Andrew guides the inquiry into ideal deal traits.4:59–7:34 · Andrew pushing back 0/10 Strategic Advice for Founders Preparing to Sell Dirk explains how founders should reflect on their personal goals and how acquisitions can free technical founders from administrative chores. Andrew expands on the advice, underscoring the necessity of clarifying target outcomes.7:35–9:40 · Andrew pushing back 0/10 Notable Acquisition Case Studies: Rewardful and Git Tower Dirk shares case studies of acquiring Rewardful after an 18-month dialogue and closing Git Tower. Andrew underscores the strategic value of initiating buyer-founder relationships long before exiting.9:41–11:55 · Andrew pushing back 0/10 Industry Predictions and the Rise of Micro-Acquisitions Dirk discusses the growth of micro-acquisitions and praises MicroAcquire's educational impact. Andrew demonstrates industry expertise by detailing how no-code tools evolve into custom code as startups scale.11:56–14:26 · Andrew pushing back 0/10 Rapid-Fire Questions: Role Models and Recommended Books Dirk answers rapid-fire questions by praising risk-taking founders and recommending 'Buy Then Build'. Andrew endorses the book recommendation, citing it as one of his personal top 10 acquisition resources.

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

0:00 · Andrew 34.5% · guest 65.5%0:00 · Andrew 34.5% · guest 65.5%3:00 · Andrew 33% · guest 67%3:00 · Andrew 33% · guest 67%6:00 · Andrew 23.1% · guest 76.9%6:00 · Andrew 23.1% · guest 76.9%9:00 · Andrew 46.3% · guest 53.7%9:00 · Andrew 46.3% · guest 53.7%12:00 · Andrew 29.8% · guest 70.2%12:00 · Andrew 29.8% · guest 70.2%15:00 · Andrew 41.6% · guest 58.4%15:00 · Andrew 41.6% · guest 58.4%
Sharpest disagreement ▶ 12:10 Playful deflection on favorite entrepreneur

In a completely non-combative interview, Dirk playfully counters the surprise question by revealing he prepared by watching previous episodes and deliberately rejects celebrity founders in favor of everyday bootstrappers.

 Hardest push from Andrew ▶ 13:44 Host pushes past flattering book joke

When Dirk jokingly names Andrew's own book as his favorite, Andrew laughs and immediately presses for his genuine second favorite recommendation.

 Biggest teaching moment ▶ 5:29 Educating founders on post-acquisition role flexibility

Dirk explains how private equity acquisitions can be tailored to remove administrative and operational burdens so technical founders can return purely to coding.

 Andrew holds their own ▶ 11:28 Host analyzes no-code to custom code progression

Andrew demonstrates his deep domain knowledge of the startup ecosystem by explaining how democratized no-code tools eventually transition into custom architectures as customer needs expand.
the scores for every segment, with the reasoning behind each
ChapterTopicAndrew as informed peerGuest teachingGuest disagreementAndrew pushing backWhy
Founding Mission and Overview of SaaS Group 3200 Dirk outlines SaaS Group's origin as a home for bootstrapped SaaS founders and recounts his transition from automotive hardware engineering. Andrew warmly validates his background and relates to learning through startup failure.
SaaS Group's Target Criteria and Acquisition Philosophy 2200 Dirk details SaaS Group's target criteria of $1M to $10M ARR in horizontal SaaS and their flexibility regarding founder retention post-acquisition. Andrew guides the inquiry into ideal deal traits.
Strategic Advice for Founders Preparing to Sell 4200 Dirk explains how founders should reflect on their personal goals and how acquisitions can free technical founders from administrative chores. Andrew expands on the advice, underscoring the necessity of clarifying target outcomes.
Notable Acquisition Case Studies: Rewardful and Git Tower 3200 Dirk shares case studies of acquiring Rewardful after an 18-month dialogue and closing Git Tower. Andrew underscores the strategic value of initiating buyer-founder relationships long before exiting.
Industry Predictions and the Rise of Micro-Acquisitions 5100 Dirk discusses the growth of micro-acquisitions and praises MicroAcquire's educational impact. Andrew demonstrates industry expertise by detailing how no-code tools evolve into custom code as startups scale.
Rapid-Fire Questions: Role Models and Recommended Books 4100 Dirk answers rapid-fire questions by praising risk-taking founders and recommending 'Buy Then Build'. Andrew endorses the book recommendation, citing it as one of his personal top 10 acquisition resources.

Statements from this episode (7)

Assertion Not checkable as stated
Sahlmer: Bootstrapped SaaS companies were historically too small for traditional PE
“And back then there were not many options for them because often these businesses are too small for, or were too small for strategic acquirers or traditional private equity firms.”
Dirk Sahlmer Apr 19, 2022 ▶ 1:13
Assertion Supported
Sahlmer: SaaS Group Has Acquired Seven Businesses
“So in the meantime, we've acquired seven businesses.”
Dirk Sahlmer Apr 19, 2022 ▶ 2:45
Disclosure
Sahlmer: saas.group targets horizontal software companies with $1M to $10M ARR
“So, so our focus is on, on businesses between one to ten million ARR. So that's our revenue sweet spot. Apart from that, we are looking for more horizontal businesses rather than vertical niche businesses. But apart from that, we are very open to different kin…”
Dirk Sahlmer Apr 19, 2022 ▶ 3:05
Disclosure
Sahlmer: saas.group prefers targets where ambitious founders remain post-acquisition
“I mean, we prefer if founders stay on board, at least for a certain period post transaction. So the perfect target would probably be a founder that is still ambitious, but identified some bottlenecks or yeah, sees that his or her skillset is somewhat limited, …”
Dirk Sahlmer Apr 19, 2022 ▶ 4:23
Disclosure
Sahlmer: SaaS Group allows founders to sell 100% or phased majority
“With us, they have all of the flexibility so they can decide whether they want to sell a hundred percent or maybe a majority first and the rest down the road. So we, yeah we structured the deal as it fits best for the founder's life situation and preferences”
Dirk Sahlmer Apr 19, 2022 ▶ 5:36
Assertion Not checkable as stated
Sahlmer: saas.group acquired Rewardful 18 months after their initial conversation
“I mean, the latest one is, for example, a Rewardful. I really liked the two founders, and it was one of my first conversations I had when I started my job at SAS Group. And we acquired them one and a half years later.”
Dirk Sahlmer Apr 19, 2022 ▶ 8:39
Assertion Not checkable as stated
Sahlmer: saas.group executed almost all its pandemic-era acquisitions entirely over Zoom
“Also with Git Tower I think this was the only founder I met in person because when I started my job the pandemic hit us. So all of the companies we acquired in the meantime were over Zoom.”
Dirk Sahlmer Apr 19, 2022 ▶ 9:03
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 100 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more