Bootstrapping to a $200 Million Exit
“Patrick Campbell started Profitwell in 2012 and bootstrapped the business until they decided they needed growth through raising money. This is a great story on how to grow a business to a $200 million transaction,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “Patrick talks about the negotiation process, how to incentivize employees and how to avoid mistakes when bringing on Founders.”
In 2012, Patrick Campbell founded ProfitWell to help SaaS companies increase revenue and reduce churn by managing their data in a single place.
After bootstrapping the business to 8-divs, Campbell decided it was time to raise money. While seeking a financial investor, Paddle approached him with an acquisition offer. Soon after, in 2022, Campbell sold ProfitWell to Paddle for over $200 million. In this episode, you’ll learn how to:
- Avoid the biggest mistake when bringing on Founders.
- Incentive employees using a surprising method.
- Decide whether to raise money or sell your company.
- Negotiate your way to the highest offer.
- Create a competitive marketplace for your business.
- Prevent the most critical error made during due diligence.