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Steve Reardon - Chief Executive Officer at ASG MarTech
Steve is an executive manager who’s worked in a wide range of businesses including his own tech start up, a mid-sized sports retail chain and a global banking group. He founded and hosts the podcast BlindSpot and is currently the CEO of ASG MarTech, a group of digital marketing Saas companies.
Steve’s Background - (02:01)
I work for ASG MarTech - a subgroup of software company ESG. In the past few months, we have acquired a lot of new businesses.
I come from a very general management background. Originally, I am from South Africa.
We see a much higher supply of profitability in the bootstrap founder-led space.
The bootstrap founders tend to want to achieve profitability a little earlier than the venture businesses. They tend to be in slightly better shape because their growth vectors have been a little bit more controlled.
Recognizing The Potential Success - (10:07)
I see a wide range of founders with various different personality types. We like tight concrete vertical solutions that have a clear addressable market. However, very often founders try to broaden their product. They want to make it accessible to everyone.
I think people that find a way to understand the data in a really deep way tend to have more success.
Some of the best founders also know what their biggest limitations are.
Tools - (15:58)
I’m interested in the DIY business intelligence dashboarding space. Google Data Studio allowed people to manage their own data. That put a lot of pressure on big players.
I also think that the world of content is going to grow. I think people who are getting good at content are going to be the marketing heroes of tomorrow.
The Acquisition Process - (02:04)
Often we see young entrepreneurs that have started a business, have gotten it to a certain point, usually around 5 to 10 employees. They are profitable and doing well but there are some problems related to operations. It's hard to manage eight people individually.
That’s where they typically look into being acquired.
Also, there are some things that the founder doesn't have the specialties to do.
But in general, there’s really no right time for everyone.
Thinking About The Right Value - (05:45)
It varies a lot depending on how big you are and how fast you're growing.
I think in general, you could probably expect to get somewhere in the region of two to five times annual recurring revenue for your bootstrap business.
Every investor's going to have a slightly different view on that.
Some investors are going to be heavily growth focused, so they want to see a high growth number. And they are ready to pay for that.
Consolidation and Acquisition in the MarTech Space - (08:19)
We’re seeing a lot of acquisition in the MarTech space. Also up and down the supply chain.
I think we're going to be seeing more and more horizontal integration in the space where people try and bring likeminded products together under one umbrella.
ASG - (12:32)
Our website is a great way to find us. We're generally a pretty open organization. We look for bootstrap companies that are founder-owned and are at around a million dollars annual recurring revenue.