The Pitfalls on the Path to Exit

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Dirk Sahlmer is the Head of Origination at saas.group, a serial acquirer of small, capital-efficient SaaS companies. Known for his insightful LinkedIn posts and newsletter articles on SaaS industry trends and M&A topics, he is a respected voice in the SaaS community.

Table of Contents

1. Why Preparation Matters for Exit

2. The Biggest Red Flags for Acquirers

3. How SaaS.group Approaches Acquisitions

4. What Founders Can Do Today

5. Final Wisdom

Why Preparation Matters for Exit

Dirk highlights that too many founders underestimate the importance of preparation before entering acquisition talks. If your financials are unclear, processes undocumented, or metrics unavailable, buyers get nervous. The result? Lower valuations, delayed deals, or missed opportunities.

He stresses that building strong reporting practices and reducing “key man risk” (where the business relies too heavily on founders or a few individuals) makes your company far more attractive.

The Biggest Red Flags for Acquirers

According to Dirk, some of the most common deal-breakers include:

• Complex entity setups: IP in one entity, staff in another, offshoring elsewhere — this can kill a deal.

• Lack of financial clarity: If you can’t provide SaaS KPIs on short notice, it signals disorganization.

• Customer concentration: If one client makes up half your revenue, it’s a major risk.

• Founder dependency: Acquirers worry when the CEO is still running all sales calls.

• Technical debt: Outdated codebases or rare programming languages discourage buyers.

His advice is clear: make it easy for acquirers to understand and trust your business.

How SaaS.group Approaches Acquisitions

SaaS.group focuses on small, capital-efficient SaaS companies with revenues between $2–10M. Unlike strategics that may take years to close a deal, they move quickly — typically within weeks.

Their model:

• Acquire companies as they are (team, brand, and product remain intact).

• Provide support through a 50+ person central operations team covering finance, HR, marketing, product, and BI.

• Look for strong tech foundations but under-optimized GTM (go-to-market) strategies where they can add value.

Dirk describes it as helping good SaaS products grow faster — while giving founders a fair and timely exit.

What Founders Can Do Today

Even if an exit isn’t imminent, founders should keep a “live data room” ready with:

• Monthly financials

• Customer and supplier contracts

• Employment agreements

• Technology stack documentation

• Updated business models and forecasts

This preparation saves weeks during due diligence and signals professionalism. As Dirk notes, “time kills deals” — the faster you can provide information, the more likely a deal closes.

Final Wisdom

If founders remember one thing, Dirk says it’s this:

“Before you enter exit conversations, bring your business in order, come prepared, and know what you want. If you’re clear about your expectations and your numbers, you’ll save everyone time — and you’ll maximize your chances of a successful outcome.”

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💡 For more insights on preparing your SaaS business for acquisition, tune into the full conversation with Dirk Sahlmer on The Operations Room Podcast.