Paul Yancich and Ryan Beaver – Lessons from 14 Months Acquiring in Software – Ep.137

My guests on this episode are Paul Yanchich and Ryan Beaver. Paul is a co-founder of Arcadea Group, a vertical market software holding company that Paul and his co-founder Daniel raised $320 million to found 14 months ago. In this episode, Paul is joined by Ryan who serves as managing director of value creation and operations.

Our conversation acts as a part two to our first episode with Paul and Daniel, episode 84, and breaks down learnings from 14 months of activity, lessons learned, where software acquisitions see the most improvement partnering with Arcadea, and evaluating management teams for the long haul. Enjoy.

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Links:

Arcadea Group

Paul Yancich On LinkedIn

Ryan Beaver on LinkedIn

Episode 84 on TLAO with Paul Yancich and Daniel Eisen

The Outsiders by Will Thorndike

Topics:

(3:04) – What have been some early learnings as first-time investors and founders?

(5:50) – In what ways are you efficient with Arcadea and where do you focus your resources?

(9:42) – What do the first 1-2 years look like after closing?

(16:38) – What are some other ways you create value and make it collaborative with CEOs that join you?

(20:53) – What parts of a software business have changed and what’s stayed relatively the same?

(24:46) – When you look at software companies today, what are the most common technical best practices missing?

(30:56) – What are some key learnings you’ve had from chatting with folks like Will Thorndike and Mitch Rails?

(37:47) – What makes founders excited about Arcadea over other potential acquirers?

(40:04) – Do you have any ambition to be a public company?

Think Like an Owner Sponsors:

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Hood & Strong, LLP — Hood & Strong is a CPA firm with a long history of working with search funds and private equity firms on diligence, assurance, tax services, and more. Hood & Strong is highly skilled in working with search funds, providing quality of earnings and due diligence services during the search, along with assurance and tax services post-acquisition. They offer a unique way to approach acquisition diligence and manage costs effectively. To learn more about how Hood & Strong can help your search, acquisition, and beyond, please email one of their partners Jerry Zhou at [email protected] 

Oberle Risk Strategies– Oberle is the leading specialty insurance brokerage catering to search funds and the broader ETA community, providing complimentary due diligence assessments of the target company’s commercial insurance and employee benefits programs. Over the past decade, August Felker and his team have engaged with hundreds of searchers to provide due diligence and ultimately place the most competitive insurance program at closing. Given August’s experience as a searcher himself, he and his team understand all that goes into buying a business and pride themselves on making the insurance portion of closing seamless and hassle-free.

If you are under LOI, please reach out to August to learn more about how Oberle can help with insurance due diligence at oberle-risk.com. Or reach out to August directly at [email protected].

Oakbourne Advisors– Oakbourne is an independent retirement plan consulting firm that helps small companies design and implement great retirement plans for their teams.  Whether you already have a 401(k) in place or are looking to start one for your team, please reach out to learn more about how Oakbourne can set your people up for success in retirement at oakbourne.com/think.

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