The Exchanges

Q Nice. And then when you initially met with the founder's Did you know this was an acquisition you were going to pursue right away? Did something persuade you over time? What did that look like?

A Well, what I would say is I was initially interested, um, immediately, um, for all the reasons I just mentioned, but what I, what I would say is, is I was, I started digging in and I wasn't dissuaded. You know, often you'll go through and you'll get excited about a particular opportunity. You'll start digging in the diligence. You'll find out that, that, that, you know, the target acquisition has this problem or that problem or something like that. And, And over the course of that diligence period, which was about, you know, a month or so, you know, I, you know, probed, looked, looked, looked, and, and I didn't find anything that, that gave me pause. In fact, um, it was really just, you know, doubling down on what I felt, um, was commitment on what they had built, what they were, their vision as to where they were going to go, and whether or not that I could be able to provide value for that. And then once those things kind of come together, Then, then it becomes almost a, I don't know, academic exercise in, in trying to put together a package that I thought would be, um, something that, that we, that would provide both myself as well as the sellers a, a path forward. Um, and you know, rather than just a simple, you know, handoff, execute, uh, or I should say handoff, execute a deal, and they walk away. You know, I, I was very much, and continue to be in the, in, The view that …

AI assessment note: “I was initially interested, um, immediately... but... I started digging in and I wasn't dissuaded.”

Q Nice. And then where do you think Aprebo can go from here? Do you have plans to continue growing it on the pace it's been growing? Do you have plans to bring it into new markets?

A We're going to start by focusing on doubling down on what they've already found success in, in their original ICP. There are certainly different paths that we could, we could go down. Um, but you know, you look at what I just said, the property condition data set that they have is so unique that You can spin that into different areas. Think, uh, you know, the roofers or other trades, um, insurance, um, you know, you could go on and on, but like, there are a number of different ways in which we can go through and create value by taking property condition data, applying some other data set to it to create derivative data that can be marketed as a product. And that is something that I certainly feel that we have a path towards. Um, you know, in the future.

AI assessment note: “We're going to start by focusing on doubling down on what they've already found”

Q What if as a buyer, you don't have a technical background? Do you think that matters?

A Um, only so much if you can retain the technical people that created it, um, or be able to, if, if they, as the seller is looking to exit, being able to replace that talent, um, You know, it again, it comes down to what stage is it at? Is it, are you still doing a ton of customer development? Um, you know, that's the right skill set. Are you hiring, you know, the team's first, you know, handful of sales reps or trying to build an initial sales motion? That's a different skill set. And so it's, what does the existing asset and team have? Um, do you compliment that? And if not, do you have the resources to go through and hire those necessary people post acquisition?

AI assessment note: “only so much if you can retain the technical people that created it”

Q Nice. What are some things in businesses that might scare you away? I assume you looked at a ton of different deals before this one. What are some common characteristics that would be instant no from you, or maybe a yellow flag and you, you turn away?

A Yeah, so, uh, lack of traction, of course, is a, is a big one. Um, limited customers, only a handful of accounts, for example. Uh, if the team was, was looking the, the runaway right away, that was something that I was, um, hesitant about, you know, rather than, um, you know, I certainly want to be able to build from a poor team. Um, but then all the normal characteristics that you would look at when evaluating is the, is the asset growing? Do they have a churn problem? Um, You know, you can go on and on, but like, those are a few, I would say, key attributes that would disqualify something, um, from a deal, within the deal flow.

AI assessment note: “lack of traction, of course, is a, is a big one. Um, limited customers”

Q So if another buyer was saying this, and they're thinking, I want to do this, I want to acquire a business, where, how could they get started? Like, what's maybe a tip or two you'd give them to get going?

A I mean, I, I think it, it, it starts with the first step. So you got to get out there, you got to find, you got to find a deal, uh, your deal flow and building your deal flow. And that could come from many sources. Um, but the marketplaces are fantastic ones because they're, they're, there's lots of options out there. And, and importantly, just start talking to, talking to founders that fit within your buy locks. And, and because it comes down to, do you love the problem they're trying to solve? Um, do you love the, the people that you could be working with as a result of putting together this particular deal? And, and obviously it's gotta make financial sense, um, for what you're looking to do, but Again, it comes down to the de-risking. I'll say it again. It is, it is going through and finding a business that has, has reduced it down to just execution risk. And if it's only execution risk, then you're ultimately betting on yourself as an operator. And that is what's so great about, about entrepreneurialism through acquisition, because that is what it really comes down to. If you're, if you're picking that sweet spot, um, You know, at that, at that stage.

AI assessment note: “you got to find your deal flow... marketplaces are fantastic ones”

Q Now walk me through the acquisition process a little bit. You met the founders on Acquire. How long did it take to close? How did negotiations go? Let's start there.

A Sure. So we met on Acquire, um, and, and, you know, I've, I've looked at many businesses on Acquire, and, you know, my, my model and framework is really like a, almost a triple T. It is, it is tech, you know, team, and TAM. And that's what That's why I think this particular acquisition really checked all of those boxes, um, when it came to what they were able to deliver in a large market with a differentiated capability, and, but also with a team that has proven itself to be both scrappy and innovative in what, and how they've been able to build up a, uh, their traction, um, from nothing in a fairly short amount of time.

AI assessment note: “my model and framework is really like a, almost a triple T”