In this special podcast episode, we explore the ins and outs of buying and growing online businesses.

Jaryd Krause is joined by Alex Prokofjev, a seasoned expert with over 15 years of experience in investment banking and corporate development. Alex has been instrumental in originating and executing hundreds of transactions involving mergers and acquisitions, capital raising, and strategic partnerships. As the former CFO of Three Colts, Alex played a key role in scaling the company from $7 million to $60 million in annual revenue. Now, he co-founded Roll Up Europe with his brother, where they are making significant strides in the M&A space.

Expect to gain a wealth of knowledge from Alex’s insights on raising capital, building a holding company, and strategically acquiring multiple businesses over time. The episode also covers Alex’s personal journey, including his transition from software and SaaS acquisitions to advising others on building successful holdcos. This conversation is packed with valuable strategies for anyone interested in online business acquisitions, whether a seasoned investor or a newcomer to the field.

Episode Highlights

02:11 Alex’s journey into SaaS acquisition

07:50 Scaling the business

15:00 How to finance acquisitions?

24:40 Building a Hold Co.

28:00 Alex’s learnings as an aggregator

Key Takeaways

➥ Targeting businesses with $2-10 million in revenue was crucial for balancing acquisition risk and attracting private equity interest. Preferring asset purchases over share purchases helped mitigate risks associated with litigation and other liabilities.

➥ Founders of businesses in the sub-$5 million revenue range often view their companies as lifestyle businesses, focusing on profitability and stability rather than aggressive growth.

➥ Using SPVs for each acquisition and having thorough documentation helps in securing necessary financing, ensuring due diligence and transparency for lenders.

About The Guest

Alex Prokofjev has a 15 year career in investment banking and corporate developments - both as an adviser and a principal. Originating and executing several hundred transactions spanning M&A; capital raising; and strategic partnerships.

He now is the CFO of Threecolts and Co-Founder of Rollupeurope.com with his brother.

Connect with Alex Prokofjev

➥ rollupeurope.com

Resource Links

➥ Sell your business to us here - https://buyingonlinebusinesses.com/sell-your-business/

➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com

➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/

➥ Cloud Ways (Website Hosting) - https://bit.ly/40tjyjG

➥ SEM Rush (SEO tool) - https://bit.ly/3lINGaV

➥ Convert Kit (Email Software Provider) - https://bit.ly/3o10Xgx

🔥Buy & Sell Online Businesses Here (Top Website Brokers We Use) 🔥

➥ Empire Flippers - https://bit.ly/3RtyMkE

➥ Flippa - https://bit.ly/3wGa8r5

➥ Motion Invest - https://bit.ly/3YmJAmO

➥ Investors Club - https://bit.ly/3ZpgioR

*This post may contain affiliate links, so we may earn a small commission when you make a purchase through links on our site/posts at no additional cost to you.

See omnystudio.com/listener for privacy information.

In today’s BOB episode, we dive into the fascinating journey of Pascal Levy-Garboua, the founder and CEO of Noosa Labs. Pascal has built a $15M ARR holding company by acquiring small, profitable, bootstrap SaaS businesses with ARR between $150K and $800K. With four companies currently in his portfolio, Pascal draws on over 20 years of experience in the tech industry, including launching two venture-backed startups, serving as the first executive at Cheka, and investing in 140 startups with 15 successful exits.

Jaryd and Pascal discuss the lessons learned from acquiring multiple businesses in a single year, including the challenges of due diligence and business growth strategies. Pascal shares insights into the unique risks associated with SaaS businesses, his approach to sales and business development, and his philosophy behind the creation of Noosa Labs.

You won’t want to miss this in-depth conversation filled with valuable takeaways for anyone interested in business acquisitions and SaaS growth. Now, let’s get started and catch today's episode!

Episode Highlights

03:45 How did Pascal start Noosa Labs?

10:30 Start with fulfillment goals rather than money goals!

19:00 Pascal’s mistakes in buying businesses

24:20 What’s a dangerous strategy when buying a business?

30:00 How to grow a business?

40:20 Where to find Pascal?

Key Takeaways

➥ Starting and running a business is challenging, and having a strong sense of fulfillment and joy in work is crucial for overcoming setbacks and staying motivated.

➥ Pascal's experience taught him to be flexible and adapt his acquisition strategy based on what he could realistically manage and afford, ensuring he remained true to his goals and capabilities.

➥ Before acquiring a business, it’s vital to have a well-defined strategy. This includes knowing exactly how you will improve and grow the business, rather than relying on learning and fixing issues post-acquisition.

About The Guest

Pascal Levy-Garboua is the founder and CEO of Noosa Labs, a holding company that buys small, profitable SaaS Companies ($150-$800k in ARR). He has 4 companies in his portfolio. He’s spent over 20 years in the tech industry, launched 2 venture back startups, was the first executive hired at Checkr and has invested in 140 Startups with 15 successful exits.

Connect with Pascal Levy-Garboua

➥ www.noosalabs.com

➥ https://www.linkedin.com/in/pascallevygarboua/

Resource Links

➥ Sell your business to us here - https://buyingonlinebusinesses.com/sell-your-business/

➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com

➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/

➥ GoDaddy (Website Hosting & Buying Domains) - https://bit.ly/3YiRkWV

➥ Surfer SEO (SEO tool for content writing) - https://bit.ly/3WWMKjM

➥ Active Campaign (Email Software Provider) - https://bit.ly/3DCwYQH

🔥Buy & Sell Online Businesses Here (Top Website Brokers We Use) 🔥

➥ Empire Flippers - https://bit.ly/3RtyMkE

➥ Flippa - https://bit.ly/3wGa8r5

➥ Motion Invest - https://bit.ly/3YmJAmO

➥ Investors Club - https://bit.ly/3ZpgioR

*This post may contain affiliate links, so we may earn a small commission when you make a purchase through links on our site/posts at no additional cost to you.

See omnystudio.com/listener for privacy information.