Buy or Build / Shutdown or Sell with Michael Frew

The Deal Scout

Navigating the Software Acquisition Landscape: Insights from Michael Frew
Today, I'm excited to share with you the valuable insights from one of our recent episodes. I had the pleasure of sitting down with Michael Frew, a seasoned professional who has worn many hats: from developer and engineer to exit consultant and software project acquirer. This conversation was not just enlightening but also packed with actionable advice for anyone looking to dive into the world of software acquisitions.
From Coding to Consulting: Michael Frew's Journey
Michael's journey is a fascinating one. He began his career deeply entrenched in the technical side of things, coding and engineering his way through complex software problems. But as his career progressed, he found himself drawn to the business side of software, specifically the niche of software project acquisitions. This transition from a hands-on developer to a strategic exit consultant and acquirer is a testament to the dynamic nature of the tech industry and the opportunities it presents for growth and diversification.
The Art of Acquiring Software Projects
Acquiring software projects is an art form that requires a keen eye for potential and a deep understanding of the market. During our conversation, Michael shed light on the types of projects he's on the lookout for. He's not just after any software project; he seeks out those with untapped potential, those that, with the right guidance and investment, could become real game-changers in their respective industries.
Valuing and Structuring Deals: A Delicate Dance
One of the most critical aspects of software acquisitions is the valuation and structuring of deals. Michael and I delved into the complexities of this process, discussing the various factors that come into play when determining the value of a software project. It's not just about the numbers; it's about understanding the project's future prospects, the team behind it, and the problem it solves in the market.
Michael also shared his approach to structuring deals, emphasizing the importance of creating win-win scenarios. Whether it's through creative financing, equity sharing, or other innovative deal structures, the goal is always to align the interests of both the buyer and the seller to ensure long-term success.
Main Lessons and Takeaways
Reflecting on our conversation, several key lessons and insights stand out:
Transitioning Roles: The tech industry allows for incredible career fluidity. Michael's transition from developer to exit consultant is a prime example of how one can evolve within the tech space.
Acquisition Criteria: Not all software projects are created equal. It's crucial to have a set of criteria to identify those with the potential for growth and success.
Valuation Nuances: Valuing a software project goes beyond just crunching numbers. It involves a deep dive into the qualitative aspects of the project and its team.
Deal Structuring: Crafting a deal structure is a delicate balance that requires creativity and a focus on mutual benefit.
Networking: Connections in the industry are invaluable. Michael's openness to sharing his contact information underscores the importance of networking and collaboration.

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