Frequently Asked Questions
Guddi Growth is an entrepreneurial investment firm looking to acquire B2B SaaS and/or tech-enabled services businesses and take over the day-to-day management from the current owner/CEO who is looking to exit.
Within software companies, preference is towards verticalized and niche businesses, but we are open to horizontal software too depending on their profitability and growth trajectory.
Within services companies, growth potential from AI enablement would be an important criteria.
We are backed by institutional investors such as Kinderhook Partners, Futaleufu Partners, Blue Frame Capital Partners, Innesto Partners, Riviera Capital, Cerralvo Capital, Ashford Venture Partners, Kamylon Holdings, Archipelago Capital Partners, Cambria Group, and Cromwell Harbor. We also have backing from current and former CEOs such as Steve Lau and Rameez Ansari (Co-CEOs of FieldEdge and AutoLeap), Felipe Corcuera-Habsburg (Co-CEO Beeker.AI), and Kent Weaver. Please see a full list of investors on our investors page.
Our transaction size is dependent on the company, its financials, and its growth story. For the right companies, we can go as high as $100M+
We have a 5-step process where we go from our first meeting to acquisition in less than 90 days.
Step 1: Intro Call - 30 to 45 minutes long (usually virtual)
Step 2: Sign NDA, perform preliminary analysis, and submit an initial offer: in 3-5 business days
Step 3: Letter of Intent: 2-3 weeks
Step 4: Due diligence: 60-90 days
Step 5: Close the deal
We are looking for B2B SaaS or services businesses with a minimum $5M ARR at the time of acquisition. If your revenue is less than that now, but you have plans to grow the revenue above the $5M threshold in the next 6-12 months, let’s chat. Additionally, we have targets for recurring revenue as a percentage of total revenue (75%) and gross margins (50%). We would love to see great customer retention (95%+ net revenue retention and 90%+ gross logo retention). We would prefer if the majority of the employee base of the company is located in the USA or Canada. Lastly, we would like to meet retiring or exiting owners, not the owners seeking growth equity.
Guddi Growth promises to not only maintain the current employee base but also grow it. About your role, we are flexible and will discuss this early on. You know more about your business and we would love for you to train on your business. We would like to have a transition period of 6-12 months during which you train us on your business and hand over knowledge. Thereafter, you are welcome to move into an advisory role or exit altogether.
Guddi Growth has an elite investment team that brings centuries of operating experience. Unlike most acquirers, we ourselves built tech products, wrote code for them, sold them to customers, and troubleshooted their issues. There are very few acquires who can appreciate the sweat and tears you have put into your business by relating to our operating experience. Lastly, we care about your employees and your legacy. We are not here to make a quick buck like private equity investors, we are here for the long term growth and value creation.
Guddi Growth can be very flexible in how we structure the deal, and we can take over management immediately after the deal is closed to provide you with a quick exit. We can structure the deal as largely cash up-front or equity-based earn-out, depending on what works best and what your goals are. We also encourage roll-over equity so that you can receive additional payout further down the line. We run a fast and straightforward process and aim to close deals quickly.
Guddi Growth will need financial statements for the last 3-4 years of the company. Don’t worry if you don’t have them handy. We will walk you through the process to make it as smooth and simple as possible.
