Bootstrapping

“Growth Mindset” and the Self-Funded Enterprise

30

Jul

0 Comments

Bootstrapping, Fixed Mindset, Growth Mindset, M&A Process, Mindset, Product, Product-First

“Growth Mindset” and the Self-Funded Enterprise

Credibility and Premium Valuations for Bootstrappers III, SaaS Data & Analytics Definitions A number of years ago, I joined ranks with the now millions of teachers, parents, students, and business professionals who have benefited from reading and internalizing Stanford psychology professor Carol Dweck’s best-selling book “Mindset: The New Psychology of Success.” While the research behind her theories took decades to compile and her book has been in print since 2006, the concepts she pioneered in the book have experienced compounding influence in education, parenting, and business over…

Credibility and Premium Valuations III, SaaS Data & Analytics Definitions

02

Jul

By Mike Firmage

0 Comments

Bootstrapping, Credibility, Data & Analytics, Industries, SaaS

Credibility and Premium Valuations III, SaaS Data & Analytics Definitions

Credibility and Premium Valuations for Bootstrappers III, SaaS Data & Analytics Definitions Figure 1: seller credibility in M&A transactions (data & analytics highlighted) In my last post, I introduced some concepts related to M&A earn-out and retention payments. As promised in my last M&A credibility post, today I am going to present the next layer of detail on SaaS metrics that help show buyers that a business is growth-ready and worthy of a premium valuation. In my previous post on credibility, we began digging into one of three credibility-impacting…

Sharks & Mergers, Acquisitions IV: “Marine” Conditions & Tying it Together

19

Jun

By Mike Firmage

0 Comments

Acquirers, Bootstrapping, M&A Process, Risk, Valuation

Sharks & Mergers, Acquisitions IV: “Marine” Conditions & Tying it Together

Sharks & Mergers, Acquisitions IV: "Marine" Conditions & Tying it Together As I mentioned in three other posts, in the technology ecosystem, it is good for (many) buyers to be active, just as an abundance of sharks signals a healthy marine ecosystem. However, it is still good to guard against “Jaws” and other circumstances that are likely to lead to an "attack" on your M&A outcome as a seller. In addition to the buyer landscape (i.e. sharks), there are a number of other inputs that swimmers (sellers)…

Sharks, Bora Bora, & Engaging M&A Markets III: “Jaws” vs. Mistaken Identity

02

May

By Mike Firmage

0 Comments

Acquirers, Bootstrapping, M&A Process, Risk, Valuation

Sharks, Bora Bora, & Engaging M&A Markets III: “Jaws” vs. Mistaken Identity

Sharks, Bora Bora, & Engaging M&A Markets III: "Jaws" vs. Mistaken Identity As I mentioned in two other posts, in the technology ecosystem, it is good for (many) buyers to be active, just as an abundance of sharks signals a healthy marine ecosystem. However, the question remains, does “Jaws” exist, i.e. are there truly dangerous, “company-damaging,” predatory buyers out there? From my experience, the answer is certainly “yes.” However, for each “Jaws” story, the reality is that a Jaws-level acquirer / investor is only involved in a…

Sharks, Bora Bora, & Engaging M&A Markets II: Types of Sharks (Buyers)

22

Apr

By Mike Firmage

0 Comments

Acquirers, Bootstrapping, Credibility, M&A Process, Risk, Valuation

Sharks, Bora Bora, & Engaging M&A Markets II: Types of Sharks (Buyers)

Sharks, Bora Bora, & Engaging M&A Markets II: Types of "Sharks" (Buyers) As discussed in my last post, the process of taking a company to market for investment or M&A can be a lot like my experience swimming with sharks. While it should be safe, that does not mean it won’t be uncomfortable or that preparation / precaution is not important. At the end of the last post, I introduce a few concepts that I’ll cover in some detail today and in further detail in future posts.…

Sharks, Bora Bora, & Engaging M&A Markets I: Markets “Speak”

16

Apr

By Mike Firmage

0 Comments

Acquirers, Bootstrapping, Investors, M&A Process

Sharks, Bora Bora, & Engaging M&A Markets I: Markets “Speak”

Sharks, Bora Bora, & Engaging M&A Markets I: Markets “Speak” In my last post, I introduced some of the most important and foundational KPIs that can be used to support a company’s growth-readiness, particularly during an M&A process. Today, I am going to start a conversation about engaging M&A markets by covering three ways in which the “market speaks” to entrepreneurs, often indicating that timing is good for a transaction. I’ll do so by using an analogy from a vacation with my wife a few years back.…

18

Mar

By Mike Firmage

0 Comments

Asset Purchase Agreement (APA), Bootstrapping, Earn-out, Transaction Agreements, Transaction Terms

Earn-Out Payments and Retention Payments

Earn-Out Payments and Retention Payments In my last transaction documents blog post – before posts on credibility and premium valuations as well as a post comparing free solo climbers and bootstrappers – I continued a section by section analysis of an asset purchase agreement with an intro to ‘Purchase and Sale of Acquired Assets; Assumption of Assumed Liabilities’. Today, we will discuss ‘Earn-Out Payments and Retention Payments,’ frequently a critical component of the total consideration in a deal. An earn-out is comprised of conditional supplementary payments incorporated…

Credibility and Premium Valuations II – SaaS Data & Analytics

13

Mar

By Mike Firmage

0 Comments

Bootstrapping, Credibility, Data & Analytics, Industries, M&A Process, SaaS, Valuation

Credibility and Premium Valuations II – SaaS Data & Analytics

Credibility and Premium Valuations II - SaaS Data & Analytics In my last post, I compared the free solo climber and the tech bootstrapper in a piece that many of my past M&A clients have identified with. Per a request from a handful of current clients as well as other SaaS entrepreneurs, I am going to add to my previous post on the importance of credibility in premium valuation transactions for SaaS bootstrappers in my post today. In my previous post on credibility, we introduced a three…

“Free Solo” and the Tech Bootstrapper: 5 Clear Parallels

07

Mar

By Mike Firmage

0 Comments

Bootstrapping, Risk

“Free Solo” and the Tech Bootstrapper: 5 Clear Parallels

“Free Solo” and the Tech Bootstrapper: 5 Clear Parallels In the summer of 2017, Alex Honnold accomplished the impossible by free soloing Yosemite’s daunting 3,200-foot El Capitan. In the climbing world, free soloing could be considered a “sub-specialty” where the climber ascends a rock-face without the use of any safety equipment. In the documentary “Free Solo,” filmmakers Jimmy Chin and Elizabeth Chai Vasarhelyi follow Honnold’s preparation for, and ascent of, the formidable face. In accomplishing the climb with no rope, no safety net, and nothing to catch…