Apr 11, 2022 · 34m · startup-acquisition-stories
Startup Acquisition Stories with Rick Garcia - Founder and COO of G12 Communications
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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, G12 Communications executive Rick Garcia discusses acquiring Monster VoIP and Engage.co via MicroAcquire, outlining his roadmap to scale both assets past $10 million in ARR while sharing essential advice on B2B sales, due diligence preparation, and deal flexibility for startup founders.
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 23.1% of the talking time here. How this is scored →
Andrew as informed peer 3.8 Guest teaching 1.9 Guest disagreement 0.1 Andrew pushing back 0.1
speaking balance: gold is Andrew, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 33:33 Rick corrects company name G12 vs G2
In a very cordial interview with virtually no conflict, Rick playfully corrects Andrew for calling his firm G2 instead of G12 Communications.
Hardest push from Andrew ▶ 15:44 Andrew counters common startup acquisition mythAndrew actively rejects the conventional Silicon Valley saying that startups are bought and not sold, arguing that founders must proactively sell their business.
Biggest teaching moment ▶ 13:00 Rick outlines necessary due diligence packet depthRick details the exact financial spreadsheets, unit cost breakdowns, and market presentation materials required for serious acquirers beyond simple Stripe screenshots.
Andrew holds their own ▶ 25:59 Andrew demonstrates expertise on distributionAndrew articulates a clear industry thesis that distribution matters far more than product quality when scaling modern SaaS companies.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | Andrew as informed peer | Guest teaching | Guest disagreement | Andrew pushing back | Why |
|---|---|---|---|---|---|---|
| Rick Garcia's Entrepreneurial Journey and MicroAcquire Deals | 2 | 1 | 0 | 0 | Andrew opens the show by introducing Rick and prompting him to share his background. Rick enthusiastically recounts his entrepreneurial journey and explains how he recently acquired two companies through MicroAcquire in quick succession. The tone is warm, friendly, and entirely collaborative. | |
| Overview of Acquired Companies: Monster VoIP and Engage.co | 4 | 1 | 0 | 0 | Rick breaks down his strategy behind purchasing Monster VoIP and Engage.co, highlighting brand differences and targeting enterprise versus SMB markets. Andrew validates Rick's strategy, correctly framing it as growth through acquisition into an SMB segment. | |
| The Importance of Sales Expertise for Tech Founders | 5 | 2 | 0 | 0 | Both host and guest bond over the necessity of sales training, with Andrew emphasizing the value of entry-level SDR roles. Rick agrees completely, observing that many technical founders on MicroAcquire build great software but lack B2B sales capabilities. | |
| Seller Advice: Communicating Flexibility and Deal Terms Early | 2 | 3 | 0 | 0 | Andrew asks for advice aimed at sellers listing companies on MicroAcquire. Rick advises founders to communicate deal flexibility early rather than letting a business fade or get stripped for parts, and Andrew listens attentively. | |
| Seller Advice: Building Thorough Due Diligence Packages | 5 | 2 | 0 | 1 | Rick provides actionable advice on compiling comprehensive due diligence packets with structured financials and market avatar breakdowns. Andrew builds on this by debunking the adage that startups are bought not sold, emphasizing that active salesmanship is necessary to close buyers. | |
| Scaling Monster VoIP and Engage.co to Eight-Figure ARR | 4 | 2 | 0 | 0 | Andrew asks about revenue potential and Rick outlines his vision for scaling both companies to eight-figure ARR. When Rick struggles to recall the name of the adoption curve, Andrew steps in to complete the technology adoption lifecycle stages. | |
| Adopting a Growth Mindset over Passive Acquisition | 5 | 2 | 0 | 0 | Andrew praises Rick's growth-oriented acquisition mindset over passive buy-and-hold strategies. Rick delivers startup advice about assembling the right complementary team, while Andrew strongly echoes that distribution is more important than product. | |
| Entrepreneurial Inspiration: Mark Cuban and Driving Revenue | 5 | 2 | 0 | 0 | Rick selects Mark Cuban as his entrepreneurial inspiration because of his focus on sales and revenue solving all business problems. Andrew recommends the book Play Bigger to discuss category creation, and they discuss applying specific niche knowledge to technology products. | |
| Wrapping Up with Rick Garcia | 2 | 2 | 1 | 0 | Andrew accidentally refers to Rick's company as G2 Communications before Rick gently corrects him to G12 Communications. Andrew thanks Rick for sharing his insights and wraps up the interview on a complimentary note. |
Statements from this episode (9)
Garcia closed two MicroAcquire startup acquisitions within three weeks in early 2022
“So yes, two companies February first, closed on February first, then what was yesterday and then closed on February 24th. So within, within three, three weeks of each other, something like that.”
Engage.co customers include the Miami Dolphins, Cleveland Browns, and PGA Tour
“And big customers like the dolphins, the Cleveland Browns, the NCAA, the PGA tour, but they've got some cool, cool customers.”
Garcia claims many software founders on MicroAcquire lack B2B sales capabilities
“There's a ton of tech guys on there, and I say tech guys, software guys, that are building amazing tools, that build amazing sort of applications, that I look at and go from a, I mean, I'm in, I'm selling to businesses every day, and I look at them and go, I s…”
Garcia claims he knows the voice business better than Vonage or RingCentral
“I think I know my business in the voice space better than the guys that A Vonage or a ring or the big guys, right? I know this business very, very well, down to the penny.”
Gazdecki argues the adage that startups are bought not sold is false
“There's a saying, it's not true. It basically means Google shows up to your door and they're like, Hey, here's your check. You got acquired, but you know, a lot of founders don't understand, like you actually have to like sell your business. You have to point …”
Garcia predicts acquired startup Monster VoIP can scale to $10 million ARR
“I think Monster, we could, I could scale that to, you know, 10, ten million dollars in AR are pretty, Not, not easily. It's been a long haul G-Twelve as an example to get past that, but ultimately I think it'd be a ten million dollar organization.”
Garcia predicts Engage.co can scale past $10 million ARR over ten years
“I think the shelf life is at least another 10 years for something like that. And I think that could scale to, you know, well over ten million dollars in ARR on its own.”
Gazdecki argues prioritizing distribution over product is what creates the best product
“Like, that's why I always say distribution over product, because when you are able to sell the product, you can improve the product, and that's how you get the best product, and it's just this big, circular life cycle, man, but it starts with driving revenue.”
Garcia claims no telecom provider offers active listening AI softphone receptionists
“Nobody in the phone business has that today. Like they just don't have that. They have an IVR or they have an, you know, an auto attendant and stuff like that, but they don't have like someone that's actively listening and doing something while they're talking…”