Ghare: Constellation Software provides support while preserving acquired company autonomy
Sanjay Ghare · This Hotel Tech SaaS Just Exited to Constellation Group After Hitting 30% EBITDA Margin and sharing 25% of profits with employees · Sep 25, 2023 · at 11:59
VervoTech founder Sanjay Ghare describes Constellation Software's operating model after selling his bootstrapped company to its Juniper Group.
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“And second thing is, they acquire company, they give you best practices, support, but they let you run things independently without any change in your culture, the way you operate, your brand, anything.”
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More from Sanjay Ghare
Ghare: VervoTech locked first customer into a seven-year fixed contract
“So what happens is we do increase the pricing, but this particular customer, you know, they had a seven-year-long contract, as an example, with no pricing. And in the early days when you really desperately wanted your customer, you do actually these kind of th…”
Ghare: VervoTech shared roughly 25% of annual profits with employees
“We had been always sharing the part of profit back to all the employees in the company... Typically, 25%, but it also depends on our cash flow because we are a bootstrap. So we just started it from two years.”
Ghare: VervoTech maintained an EBITDA margin around 30%
“We try to operate around 30%... It's a EBITDA.”
Ghare: VervoTech customer contracts average $16,000 per year
“So average right now would be around 16,000 dollars per year, but the customers pay between 12 to 100,000.”