Ativo Group founder Len Rio discusses market size and M&A opportunities within the SAP reseller ecosystem.
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“There's approximately 700 or 800 SAP resellers for the product line that we work with around the globe.”
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More from Len Rio
Insight
Subscription software transformed ERP customer lifetime value into a 10-year relationship
“It replaces the need to have to spend to write a check for six figures to buy the license upfront, like the old model was some three, four or five years ago. And, you know, it shifted the lifetime value of the customer from that, just that first year where it …”
Len RioApr 4, 2021▶ 6:57He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Insight
Learning a new ERP product requires three to four years and $500,000
“Starting from zero and trying to learn a new ERP product is a long, long road. It's a good three, four years. And Half a million dollars of learning. So it's a lot easier to acquire.”
Len RioApr 4, 2021▶ 11:22He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
PredictionNot checkable as stated
Ativo Group projects approximately $3.6 million in 2021 revenue
“We'll probably do 3.6, I would think.”
Len RioApr 4, 2021▶ 9:59He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Disclosure
Ativo Group currently generates about 60% of its income as recurring revenue
“We're about 60% there. We need to get to say, 80, 90% recurring revenue without any large, without any one large customer being, you know, the driving force behind that number.”
Len RioApr 4, 2021▶ 13:20He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Disclosure
Ativo Group's largest single customer accounts for up to $700,000 annually
“Probably Six, 700,000 a year.”
Len RioApr 4, 2021▶ 13:37He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Disclosure
Ativo Group operated at roughly breakeven EBITDA on $3.8 million revenue
“It was basically break even.”
Len RioApr 4, 2021▶ 14:02He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
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