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Nov 15, 2021 · 18m · startup-acquisition-stories

Startup Acquisition Stories with Christopher Tung - Founder of Reporty

Chris Tung · 11m 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

Host Andrew Gazdecki interviews solo founder Chris Tung, who shares how he built, grew, and successfully sold his Shopify-to-Slack integration app, Reporty, on MicroAcquire.

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 26.7% of the talking time here. How this is scored →

Andrew as informed peer 2.7 Guest teaching 2.3 Guest disagreement 0.2 Andrew pushing back 0.3
05100:0010:000:25–2:59 · Andrew as informed peer 3/10 Welcoming Chris Tung and Discussing Micro-SaaS Exits The host welcomes the guest and praises the value of micro-SaaS acquisitions. The guest explains the technical origin story of Reporty solving Shopify-to-Slack UTM tracking limitations.2:59–5:04 · Andrew as informed peer 2/10 Listing on MicroAcquire and Finding the Right Buyer The conversation is highly collaborative as the guest describes listing on MicroAcquire and creating proactive financial and FAQ documentation for potential buyers.5:04–7:48 · Andrew as informed peer 2/10 Due Diligence, Screen Sharing, and Asset Transfer The guest walks through due diligence, live asset handoffs on video calls, and offers mild feedback that fund transfers via escrow lack transparency, which the host acknowledges.7:49–9:53 · Andrew as informed peer 3/10 Post-Sale Support and Founder-to-Buyer Trust The guest explains structuring a 30-day post-sale support window, emphasizing the value a solo developer provides to an incoming buyer. The host validates the importance of ongoing trust in SaaS acquisitions.9:53–14:12 · Andrew as informed peer 5/10 Seller Guidance: Buyer FAQs, Communication, and Valuation The guest outlines strategies for filtering buyers and defending a 5x multiple. The host demonstrates domain knowledge by detailing when ARR multiples versus EBITDA multiples apply to SaaS transactions.14:13–17:12 · Andrew as informed peer 1/10 Podcast Influences, Marvel Experience, and Favorite Graphic Novels A relaxed closing segment covering podcasts, graphic novels, and the guest's former editorial work at Marvel. The host playfully corrects his favorite superhero pick from Venom to Iron Man.0:25–2:59 · Guest teaching 2/10 Welcoming Chris Tung and Discussing Micro-SaaS Exits The host welcomes the guest and praises the value of micro-SaaS acquisitions. The guest explains the technical origin story of Reporty solving Shopify-to-Slack UTM tracking limitations.2:59–5:04 · Guest teaching 2/10 Listing on MicroAcquire and Finding the Right Buyer The conversation is highly collaborative as the guest describes listing on MicroAcquire and creating proactive financial and FAQ documentation for potential buyers.5:04–7:48 · Guest teaching 3/10 Due Diligence, Screen Sharing, and Asset Transfer The guest walks through due diligence, live asset handoffs on video calls, and offers mild feedback that fund transfers via escrow lack transparency, which the host acknowledges.7:49–9:53 · Guest teaching 2/10 Post-Sale Support and Founder-to-Buyer Trust The guest explains structuring a 30-day post-sale support window, emphasizing the value a solo developer provides to an incoming buyer. The host validates the importance of ongoing trust in SaaS acquisitions.9:53–14:12 · Guest teaching 3/10 Seller Guidance: Buyer FAQs, Communication, and Valuation The guest outlines strategies for filtering buyers and defending a 5x multiple. The host demonstrates domain knowledge by detailing when ARR multiples versus EBITDA multiples apply to SaaS transactions.14:13–17:12 · Guest teaching 2/10 Podcast Influences, Marvel Experience, and Favorite Graphic Novels A relaxed closing segment covering podcasts, graphic novels, and the guest's former editorial work at Marvel. The host playfully corrects his favorite superhero pick from Venom to Iron Man.0:25–2:59 · Guest disagreement 0/10 Welcoming Chris Tung and Discussing Micro-SaaS Exits The host welcomes the guest and praises the value of micro-SaaS acquisitions. The guest explains the technical origin story of Reporty solving Shopify-to-Slack UTM tracking limitations.2:59–5:04 · Guest disagreement 0/10 Listing on MicroAcquire and Finding the Right Buyer The conversation is highly collaborative as the guest describes listing on MicroAcquire and creating proactive financial and FAQ documentation for potential buyers.5:04–7:48 · Guest disagreement 1/10 Due Diligence, Screen Sharing, and Asset Transfer The guest walks through due diligence, live asset handoffs on video calls, and offers mild feedback that fund transfers via escrow lack transparency, which the host acknowledges.7:49–9:53 · Guest disagreement 0/10 Post-Sale Support and Founder-to-Buyer Trust The guest explains structuring a 30-day post-sale support window, emphasizing the value a solo developer provides to an incoming buyer. The host validates the importance of ongoing trust in SaaS acquisitions.9:53–14:12 · Guest disagreement 0/10 Seller Guidance: Buyer FAQs, Communication, and Valuation The guest outlines strategies for filtering buyers and defending a 5x multiple. The host demonstrates domain knowledge by detailing when ARR multiples versus EBITDA multiples apply to SaaS transactions.14:13–17:12 · Guest disagreement 0/10 Podcast Influences, Marvel Experience, and Favorite Graphic Novels A relaxed closing segment covering podcasts, graphic novels, and the guest's former editorial work at Marvel. The host playfully corrects his favorite superhero pick from Venom to Iron Man.0:25–2:59 · Andrew pushing back 0/10 Welcoming Chris Tung and Discussing Micro-SaaS Exits The host welcomes the guest and praises the value of micro-SaaS acquisitions. The guest explains the technical origin story of Reporty solving Shopify-to-Slack UTM tracking limitations.2:59–5:04 · Andrew pushing back 0/10 Listing on MicroAcquire and Finding the Right Buyer The conversation is highly collaborative as the guest describes listing on MicroAcquire and creating proactive financial and FAQ documentation for potential buyers.5:04–7:48 · Andrew pushing back 1/10 Due Diligence, Screen Sharing, and Asset Transfer The guest walks through due diligence, live asset handoffs on video calls, and offers mild feedback that fund transfers via escrow lack transparency, which the host acknowledges.7:49–9:53 · Andrew pushing back 0/10 Post-Sale Support and Founder-to-Buyer Trust The guest explains structuring a 30-day post-sale support window, emphasizing the value a solo developer provides to an incoming buyer. The host validates the importance of ongoing trust in SaaS acquisitions.9:53–14:12 · Andrew pushing back 0/10 Seller Guidance: Buyer FAQs, Communication, and Valuation The guest outlines strategies for filtering buyers and defending a 5x multiple. The host demonstrates domain knowledge by detailing when ARR multiples versus EBITDA multiples apply to SaaS transactions.14:13–17:12 · Andrew pushing back 1/10 Podcast Influences, Marvel Experience, and Favorite Graphic Novels A relaxed closing segment covering podcasts, graphic novels, and the guest's former editorial work at Marvel. The host playfully corrects his favorite superhero pick from Venom to Iron Man.

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

0:00 · Andrew 28.6% · guest 71.4%0:00 · Andrew 28.6% · guest 71.4%3:00 · Andrew 24.6% · guest 75.4%3:00 · Andrew 24.6% · guest 75.4%6:00 · Andrew 9.9% · guest 90.1%6:00 · Andrew 9.9% · guest 90.1%9:00 · Andrew 33.1% · guest 66.9%9:00 · Andrew 33.1% · guest 66.9%12:00 · Andrew 42.9% · guest 57.1%12:00 · Andrew 42.9% · guest 57.1%15:00 · Andrew 22.1% · guest 77.9%15:00 · Andrew 22.1% · guest 77.9%18:00 · Andrew 22.7% · guest 77.3%18:00 · Andrew 22.7% · guest 77.3%
Sharpest disagreement ▶ 7:15 Constructive critique of escrow settlement

The guest offers mild pushback against the marketplace's third-party escrow integration, stating a lack of transparency and urging the host to build a better transfer solution.

 Hardest push from Andrew ▶ 7:30 Host reassures on product roadmap

The host immediately jumps in to address the guest's escrow criticism by reassuring him that improved transfer workflows are already in development.

 Biggest teaching moment ▶ 10:12 Educating founders on buyer FAQ hubs

The guest lays out an actionable framework for founders to build dedicated FAQ docs that filter out non-serious acquirers before entering due diligence.

 Andrew holds their own ▶ 13:19 Marketplace valuation mechanics

The host brings clear marketplace expertise to the table, elaborating on how revenue growth rates dictate whether ARR multiples or EBITDA multiples are appropriate.
the scores for every segment, with the reasoning behind each
ChapterTopicAndrew as informed peerGuest teachingGuest disagreementAndrew pushing backWhy
Welcoming Chris Tung and Discussing Micro-SaaS Exits 3200 The host welcomes the guest and praises the value of micro-SaaS acquisitions. The guest explains the technical origin story of Reporty solving Shopify-to-Slack UTM tracking limitations.
Listing on MicroAcquire and Finding the Right Buyer 2200 The conversation is highly collaborative as the guest describes listing on MicroAcquire and creating proactive financial and FAQ documentation for potential buyers.
Due Diligence, Screen Sharing, and Asset Transfer 2311 The guest walks through due diligence, live asset handoffs on video calls, and offers mild feedback that fund transfers via escrow lack transparency, which the host acknowledges.
Post-Sale Support and Founder-to-Buyer Trust 3200 The guest explains structuring a 30-day post-sale support window, emphasizing the value a solo developer provides to an incoming buyer. The host validates the importance of ongoing trust in SaaS acquisitions.
Seller Guidance: Buyer FAQs, Communication, and Valuation 5300 The guest outlines strategies for filtering buyers and defending a 5x multiple. The host demonstrates domain knowledge by detailing when ARR multiples versus EBITDA multiples apply to SaaS transactions.
Podcast Influences, Marvel Experience, and Favorite Graphic Novels 1201 A relaxed closing segment covering podcasts, graphic novels, and the guest's former editorial work at Marvel. The host playfully corrects his favorite superhero pick from Venom to Iron Man.

Statements from this episode (9)

Opinion
Tung: Solo SaaS founders do not need IPOs to achieve lucrative exits
“You know, I think we don't all need to be IPOs. We don't all need to be acquired by like Salesforce or whatever. So having an outlet and an exit strategy that is quite lucrative for those of us that are micro SaaS builders or, you know, solo founders has been …”
Chris Tung Nov 15, 2021 ▶ 0:44
Assertion Supported
Tung: Existing Shopify apps lacked Slack UTM and coupon tracking
“There was no way for you to get UTM tracking specifically, and like coupon code redemption data in in your Slack channel from Shopify. There were a lot of apps out there that would do light Shopify to Slack integration, but not what I needed”
Chris Tung Nov 15, 2021 ▶ 1:48
Disclosure
Tung: Passive income from Reporty enabled rigid valuation stance during acquisition talks
“The lucky position I was in is that the product is very passive income for me, and so I was pretty rigid in the valuation that I put out, and if A buyer said, I don't think it's worth that much. I was like, great. Good luck on all your other Micro Acquire acqu…”
Chris Tung Nov 15, 2021 ▶ 4:00
Insight
Tung: Founders should mutually record live video calls to transfer acquisition assets
“And I think what was really important that I would recommend to anyone who goes through a process like this is we did a Google video call Where we record, we both mutually recorded the call, and then transferred everything on the call”
Chris Tung Nov 15, 2021 ▶ 6:30
Opinion
Tung: Escrow.com lacks transparency during acquisition fund transfers
“There's a lack of transparency on that side, and I think what has been wonderful is Microfire has so much transparency on, on the actual relationship building experience”
Chris Tung Nov 15, 2021 ▶ 7:35
Insight
Tung: Solo founder acquisitions offer faster post-sale support than dev teams
“It has been helpful to interact with people who intimately know the product and therefore can help with that kind of post-sale support versus being like, oh, let me go talk to my dev team, blah, blah, blah, blah, blah. It takes forever. And then you don't get …”
Chris Tung Nov 15, 2021 ▶ 8:54
Insight
Tung: Buyer FAQs Help Startup Sellers Filter Out Non-Serious Acquisition Inquiries
“Building an FAQ document, kind of like a pseudo-help center for these buyers, Will allow you to focus more on the buyers that really are serious. And then the ones who you say like, hey, I have some questions. You send them the document. They never get back to…”
Chris Tung Nov 15, 2021 ▶ 10:29
Disclosure
Tung: Reporty Was Valued and Sold at a 5x Multiple
“I ultimately picked a five x valuation, which was quite lucrative and helpful for me and then I stood by it”
Chris Tung Nov 15, 2021 ▶ 12:59
Insight
Gazdecki: Value growing startups on ARR, and flat startups on EBITDA
“Typically even DAW best in my, from what I've seen when, you know, business isn't growing too much, it's flat or it's just extremely profitable. And then ARR if it's growing.”
Andrew Gazdecki Nov 15, 2021 ▶ 13:44
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