Check out Tim’s interview with Omer Khan on The SaaS Podcast where he talks about scaling bootstrapped SaaS via acquisitions, the key attributes Tim looks for in potential SaaS acquisition targets, how the acquisition process works, and how provides centralized support and resources to help companies in its portfolio to grow and succeed while still preserving their autonomy.

“So first of all, we look at the size of the business. We like to acquire businesses between 1 and 10 million in ARR. We obviously like to have growing businesses. We also like profitable businesses.

Sometimes we’ve done turnaround businesses where there there’ve been VCs, for example, who’ve kind of abandoned the company or founders who just couldn’t get the company profitable. But in the majority of the cases, we’ve been focusing on already profitable companies with a very healthy bootstrapper mindset.

Then topic wise, we’re looking at general topics. We’re not going into super niche vertical businesses which we don’t understand, but we try to go into general productivity tools, developer tools, online marketing tools, those sorts of things.

Then customer base should be in the US or North America and Western Europe. That tends to be the market we understand best, but the location and the origin of the business can literally be anywhere in the world. And those are pretty much the main criteria.”

Tim Schumacher

Head of Growth,