Luke Shepard, founder of Revive Ratings, discusses finding underpriced, zero-revenue software assets on Acquire.com with CEO Andrew Gazdecki.
Insight
Shepard: SaaS is valued on profitability and founder independence, not revenue
“I feel like we're always told when you start a SaaS business, like, oh, you're going to be valued off of profit, off of revenue, right? You're going to get three to five times whatever your revenue is and, like, just, I mean, yeah, that's true in some cases, a…”
Insight
Shepard: Insurance agencies are easy cold targets because owner names are public
“Insurance agencies, We're the easiest clientele to start with because I started without, like, knowledge of, like, Apollo or Seamless or ZoomInfo, so I don't know how to find people's names online. So if you look it up, just look up insurance agencies near me,…”
Assertion Not checkable as stated
Shepard: Revive Ratings acquired its first 200 customers via cold calling
“Yeah, that was all, that was our first 200 customers. Yeah, so all cold called.”
Assertion Not checkable as stated
Shepard: 95% of competitor CEOs agreed to meet with college founder
“The other cool thing about college is, like, kind of like the secret is you just no one sees you as a threat, right? So I would actually, like, spend, like, probably, like, 30 minutes a week just messaging competitors on LinkedIn, their CEOs and stuff, and lik…”
Assertion Not checkable as stated
Shepard: First acquisition deal collapsed due to buyer lacking funds
“He didn't have the money that he said that he did. And so it kind of the later acquisition about two months, which, you know, looking back, it's like, you know, kind of a drop in the bucket, right?”
Disclosure
Shepard: Revive Ratings sold for $500K with a 90-day SBA loan process
“So I think in total it ended up taking, like, Almost 90 days to get it all the way processed. And, like, we weren't, like, a huge acquisition, you know? Like, 500 grand is, it's good, but, like, Acquire.com is selling much bigger deals, but the SBA loan just t…”