Tara Reed, CEO of Apps Without Code, reflects on the learning curve and operational realities of acquiring micro-SaaS businesses.
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“I think that there is a limited amount of due diligence that you can do depending on the deal size, and so I think I probably over complicated that part of the process when I first got started.”
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More from Tara Reed
Insight
Tara Reed: Premium pricing works far better than high-volume low pricing for bootstrappers
“I'm not really that interested in the like low price point, but we've got lots of customers model. I actually prefer premium price points as a business model and sort of learned that in my first two businesses. One where I did a low price .1 where I did a prem…”
Tara ReedNov 15, 2021▶ 17:30Startup Acquisition Stories with Tara Reed CEO at Apps Without Code
Insight
Reed: Formal technical due diligence is unhelpful for micro-SaaS acquisitions
“I actually worked with a due diligence company, actually, who, like, went to the code base and did all of that work, and I felt like they It just wasn't all that helpful at the deal sites that I was doing to get that level of, like, there were things that were…”
Tara ReedNov 15, 2021▶ 19:22Startup Acquisition Stories with Tara Reed CEO at Apps Without Code
Insight
Reed: Splitting Acquisition Price into Asset and Contractor Fees Optimizes Taxes
“The other part that's really important about how we structure the deals just for like tax planning purposes. Is we'll do a lot of the asset purchase. We'll be like, we'll take the amount that we agree upon, and a particular percentage of that will be actually …”
Tara ReedNov 15, 2021▶ 8:30Startup Acquisition Stories with Tara Reed CEO at Apps Without Code
“And so the, all of the growth spree companies are sharing marketing agency operations, a couple of different resources, if that makes sense, but then they have a point of contact who's usually the CTO.”
Tara ReedNov 15, 2021▶ 11:20Startup Acquisition Stories with Tara Reed CEO at Apps Without Code
Insight
Reed: Customers pay far more for human services than identical software
“But if you gave people, like, a service, the service did the exact same thing as the software, but just a service version and told them that humans are gonna do it, they would pay, like, way more for that same exact thing.”
Tara ReedNov 15, 2021▶ 12:52Startup Acquisition Stories with Tara Reed CEO at Apps Without Code
Disclosure
Growth Spree packages acquired software as agency or educational services
“So when we acquire a software business, we're not going to sell it just as a software business. We sell it and position it as a education experience and or an agency.”
Tara ReedNov 15, 2021▶ 14:17Startup Acquisition Stories with Tara Reed CEO at Apps Without Code
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