9 Acquisitions Taught me to Follow this One Warren Buffett Rule

Summary

Michael Frew shares his journey of transitioning from a corporate career to becoming an entrepreneur through 9 acquisitions. He discusses his experiences with different types of businesses, including Amazon affiliate sites, software as a service (SaaS) companies, and e-commerce platforms. Michael emphasizes the importance of finding the right fit and matching his expertise with the businesses he acquires. He also highlights the lessons he learned from each acquisition, such as the significance of customer service and the need to thoroughly understand the business before making a purchase. Michael’s acquisitions have allowed him to build a portfolio of successful businesses that generate cash flow. Michael Frew shares his experience and insights as a serial acquirer of tech businesses. He emphasizes the importance of finding businesses that align with your tech stack and maintaining a similar tech stack across your portfolio. Frew also discusses the benefits of hiring US-based programmers and the value of goodwill in business acquisitions. He shares his approach to acquiring smaller businesses and adding value through marketing add-ons. Frew highlights the significance of scalability and robustness in acquired businesses and the challenges of finding the right people to replace him in operational roles. He concludes by offering advice for new buyers in the tech industry.

Keywords

acquisitions, corporate career, entrepreneur, Amazon affiliate sites, SaaS, e-commerce, customer service, cash flow, tech acquisitions, tech stack, US-based programmers, goodwill, scalability, operational roles, warren buffett

Chapters

00:00 Introduction and Background
03:00 Transitioning from a Corporate Career to Entrepreneurship
08:54 Lessons from Early Acquisitions
13:24 Importance of Understanding the Business
23:24 Building Rapport with Sellers
26:44 Managing Multiple Businesses
29:32 Aligning Tech Stacks and Teams
30:19 The Value of US-Based Programmers
31:30 The Importance of Goodwill in Acquisitions
32:04 Staying Flexible in Verticals
33:03 Preferred Acquisition Range
33:36 Largest Acquisition and Future Plans
35:17 Platform as a Service Business
38:36 Focus on Scalability and Robustness
41:05 Challenges of Churn and In-House Adoption
43:10 Financial Performance and Returns
45:23 Building Credibility and Imposter Syndrome
48:42 Finding the Right People to Replace You
50:36 Active Search for New Acquisitions
53:01 Advice for New Buyers in the Tech Industry

Jon Stoddard Podcaster

Acquiring businesses, teaching entrepreneurs how to acquire businesses and helping entrepreneurs scale businesses through acquisitions and marketing. Jon is adept at negotiation, marketing strategy, structuring and funding of mergers and acquisitions IPOs and exit strategies.