Brad Miller details how private equity acquirer TZP mismanaged operational marketing after taking over his SaaS company.
Assertion Not checkable as stated
SVB Refused to Lend to Miller Because He Lacked VC Backers
“They were one of our banks, but they never lent us money. We flowed all our credit cards through them. And, ah, they would come to us all the time and ask if we wanted to borrow money from them. We'd say, sure. And, you know, we were the only company they had …”
Prediction Not checkable as stated
Miller: Post-exit, Awareness Technologies' revenue will halve to $10M in 2022
“The business will do ten million in revenue this year.”
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Miller: Awareness Technologies' new owners defaulted on debt payments in 2022
“They haven't made a bank payment or an interest payment since March, and they might not for quite a while.”
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Bootstrapped Proptech Beat Chicago Rivals Who Raised $80M in Venture Capital
“Had a hundred buildings in Chicago, and all the other competitors had raised 20 to eighty million dollars, and they were all based in Chicago, too, but he had the number one market share, and I'm like, how, how is that possible that in their backyard, you're k…”
Opinion
Miller: PE Firms Would Rather 'Burn in Hell' Than Admit Mistakes
“I can guarantee you that was the last thing. They would rather burn in hell hanging by their, you know, by their ankles than they would come back and say, I screwed up.”
Assertion Not checkable as stated
Miller: Acquired competitor Variato for $3.5M after initial $19M valuation
“We started a negotiation where we were going to pay them. Nineteen million dollars on it. Then they were doing twelve million of revenue. But by the time we close the deal, they were on a Eight million dollar run rate, and they had run out of money, and they c…”