Marketing due diligence for B2B SaaS acquisitions with Tim Heicks @saas.group

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 #6, Anna Nadeina talks with Tim Heicks, Brand CMO at saas.group about all things Marketing due diligence B2B SaaS companies have to go through during an acquisition.

Background and Experience

Tim Heicks has a diverse background in the marketing industry, starting his career 15 years ago at a SaaS company as an account manager focused on Performance Marketing, specifically Google ads. He then went on to work for Adobe before moving into the gaming industry, where he was responsible for user acquisition for mobile and browser games using various SaaS tools. After working in the game industry, Tim joined saas.group where he is now the Brand CMO leading the central marketing team together with Julian Rothkamp. 

What is Marketing Due Diligence in SaaS Acquisitions?

Marketing due diligence in SaaS acquisitions is the process of thoroughly examining all aspects of a business that could potentially influence its future success. This includes assessing the risk potential and opportunities going forward. Marketing due diligence is crucial because marketing has a significant impact on long-term revenues and also plays a relevant role in the cost side of the business.

During marketing due diligence, the following factors are considered:

1. Who is in charge of marketing for the company?
2. How does marketing work together with the sales team?
3. If growth is mainly coming from the founder’s network, personality, or brand
4. Examination of financial numbers from the last four to five years
5. Identification of internal or external shocks that may have affected marketing performance
6. Projected marketing strategy and plans for growth

Additionally, founders are advised to start early and keep track of all key performance indicators (KPIs) that impact the business’s marketing efforts. 

Assessing Metrics and Tools for Marketing Due Diligence

Marketing due diligence for SaaS acquisitions requires a thorough assessment of various metrics and tools to ensure a comprehensive understanding of the company’s marketing operations. Here are some important metrics to assess when conducting marketing due diligence:

1. Customer acquisition cost
2. Cost per lead
3. Cost per sign-up
4. Return on Advertising spend
5. Retention and churn rates

Growth Trajectory and Future Acquisitions

Since its inception, saas.group has embarked on a remarkable growth trajectory. The focus has been on both organic growth and acquiring portfolio companies.

Organic growth has been a significant area of focus, with a strong emphasis on developing and implementing effective SEO strategies across the portfolio companies. This long-term approach to SEO has yielded positive results, driving both revenue and new customer acquisition – a testament to the impact of sustained SEO efforts.

Looking ahead, saas.group is poised to continue its growth through additional acquisitions. The M&A team is actively engaged in seeking out companies that align with the vision of the conglomerate. While the core focus remains on profitable bootstrap SaaS companies, there is openness to making exceptions where warranted. Industries closely related to the existing portfolio are desirable, although exploration of other areas within the SaaS world is also underway.

As saas.group moves forward, the plan is to maintain a strong growth trajectory and further solidify its position as a leading player in the SaaS industry.