How to get SaaS exit ready and find your buyer fit with Alexis Grant @TheyGotAcquired

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #1 of season 5, Anna Nadeina talks with Alexis, founder and CEO of TheyGotAcquired, a media company that helps entrepreneurs sell their businesses.

Alexis began her career as a journalist before transitioning into running her own content businesses. Unlike many in the M&A field, her path was not through corporate training or investment banking. Her first-hand experiences in selling her businesses ignited her passion for helping other founders navigate the complex acquisition landscape.

“When I sold my businesses, I found there were very few resources available for founders like me,” Alexis explains. “Most information was geared towards those selling multi-million dollar companies, not the smaller, often bootstrapped ones.” This gap in resources inspired her to create TheyGotAcquired, a platform dedicated to sharing insights and stories from founders who have successfully sold their businesses.

First and Second Business Sale Experiences

Alexis sold her first business, a content marketing agency, in 2015. The sale was an aqua-hire, meaning she and her team joined the purchasing company. The buyer was The Penny Hoarder, a personal finance media brand. “We had worked with them for over a year, so there was a strong relationship,” she recalls. The experience was largely positive, providing her with valuable lessons and insights into scaling a business.

Her second sale involved a side project, a website for writers, which she sold for around half a million dollars. Despite being on the smaller end of the market, it was a meaningful exit for her family. “Even though I had been through the process once, I still faced challenges in finding the right people to help me,” she admits. “Many advisors told me I was too small to sell, which is a common issue for founders of smaller businesses.”

Building They Got Acquired

After her experiences, Alexis launched TheyGotAcquired to fill the gap she had identified. The platform serves as a media company focused on sharing acquisition stories and providing advice for founders. “We interview founders who have sold their businesses and share not just the metrics but the context behind those deals,” she explains. This approach not only educates but also inspires others considering an exit.

Understanding Acquisition Trends and Founder Insights

Alexis emphasizes the importance of understanding current acquisition trends and how they impact valuations. “Founders often want to know how their business compares to others in the market,” she says. “We provide reports that outline recent sales in the SaaS space, so they can see what similar companies have sold for.”

Her insights reveal that while SaaS remains highly sought after, the market is continually evolving. “The real question for founders is not just about market timing but also personal readiness,” she advises. “You want to sell while your business is on the upswing, not waiting until it begins to decline.”

Valuation Stories and Strategic Acquisitions

Valuations can vary widely depending on several factors, including growth rates and market demand. Alexis shares stories of businesses that have achieved impressive multiples due to strong performance and strategic positioning. “One SaaS company sold for a 16x revenue multiple because they served a lucrative niche market,” she recounts. “It’s all about finding that right fit and being in a position where multiple buyers are interested.”

Choosing the Right Buyer: Beyond the Highest Bidder

When it comes to selling a business, many founders think the highest bid is the best choice. However, Alexis argues that this is not always the case. “Founders should consider who they want to sell to, not just the financials,” she suggests. “If you have the autonomy, you can choose a buyer who aligns with your values and vision.”

She highlights the importance of understanding the terms of the deal as well. “Sometimes a seemingly high offer is laden with conditions that may not be favorable,” she warns. “It’s crucial to look beyond the topline number and understand the implications of earnouts and performance-based payments.”

Addressing the Gender Gap in Business Acquisitions

One of the pressing issues Alexis addresses is the gender gap in business acquisitions. She notes that in her experience, female-led companies are significantly underrepresented in the acquisition space. “In our conversations, it’s clear there is a need for more visibility and support for female founders,” she emphasizes. “We need to create an inclusive environment where women feel empowered to sell their businesses.”

Challenges and Strategies for Female Founders in SaaS

Female founders face unique challenges in the SaaS landscape, from securing funding to navigating the acquisition process. Alexis shares her commitment to supporting women in this space through mentorship and resources designed to uplift them. “It’s about building a network and creating opportunities for women to connect and share their stories,” she says.

Advice for SaaS Founders: Building a Sellable Business

For founders looking to prepare their businesses for sale, Alexis offers straightforward advice: “Build a great business. If you create something valuable that you love running, it’s likely others will want it too.”

She stresses the importance of having a strong team, solid financials, and a business model that is not solely reliant on the founder. “These foundational elements will make your business attractive to potential buyers,” she advises.

Biggest Wins and Challenges in Content Marketing

As the founder of a media company, Alexis understands the nuances of content marketing. “Our biggest win has been finding our content market fit,” she shares. “Seeing the positive impact our work has on founders has been incredibly rewarding.”

However, she acknowledges the challenges as well, particularly in monetization. “The media landscape is changing rapidly, and finding sustainable revenue models is an ongoing journey,” she admits.

Growing an Engaged Audience: Tips and Hacks

Growing an audience is crucial for any media company, and Alexis has found success through platforms like LinkedIn. “I enjoy writing there and engaging with our audience,” she says. “It’s about creating content that resonates and building relationships.”

While she emphasizes the importance of authenticity, she also mentions leveraging AI tools for support. “I use AI to help generate ideas and variations of content, but I always add my personal touch,” she explains.

Final Thoughts

As Alexis Grant’s journey illustrates, navigating the acquisition landscape requires preparation, knowledge, and a strong understanding of what makes a business valuable. Whether you’re a founder of a small SaaS company or a seasoned entrepreneur, the insights shared here can guide you in making informed decisions about your exit strategy.