How Go-To-Market Strategies Affect Valuation w/ Shiv Narayanan: The Agency Profit Podcast

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About this Episode

In this episode of the Agency Profit Podcast, Marcel Petitpas sits down with Shiv Narayanan, CEO of How To SaaS, to dive into the unique role marketing plays in mergers and acquisitions (M&A). Shiv shares his deep expertise in working with private equity investors and SaaS companies, highlighting how pre- and post-acquisition marketing can influence a company’s valuation and deal flow. From optimizing marketing due diligence to refining strategies that ensure a business is ready for exit, Shiv emphasizes the power of precise positioning and the critical importance of aligning marketing with investor objectives. His insights offer agency owners a clear roadmap to increase their business’s attractiveness and profitability in the context of an M&A event.

Points of Interest

00:49 – 01:52 – Shiv's Background: Shiv shares his journey from building and selling a company to now running How to SaaS, where he works with private equity investors and software companies on marketing strategies.
01:53 – 02:51 – Marketing for Private Equity: Shiv explains his company’s focus on providing marketing due diligence, strategy consulting, and fractional CMO services to private equity firms and software companies.
02:52 – 03:41 – The Power of Positioning: Marcel highlights the uniqueness of Shiv’s focus on private equity, differentiating How to SaaS in the market by addressing specific investor needs.
06:06 – 07:40 – Product Market Fit: Shiv talks about the creation of a new market category—marketing due diligence—and how this focus on strategy over tactics helped his firm differentiate itself.
07:41 – 09:05 – Preparing for Exit: Shiv explains how businesses should prepare for a sale by focusing on predictable revenue, reducing customer concentration, and ensuring operational efficiency to appeal to buyers.
9:06 – 12:02 – Identifying Ideal Clients: Shiv emphasizes the need to focus on ideal customers who bring in scalable, predictable revenue and why saying no to less ideal clients is key to long-term success.
12:03 – 15:57 – Strategic Specialization: Shiv highlights how specializing in a narrow, focused market can lead to higher margins, better client retention, and an overall increase in business valuation.
15:58 – 21:38 – Internal Efficiency and Gross Margins: Marcel and Shiv discuss how internal specialization and optimizing gross margins can make an agency more profitable and attractive for acquisition.
21:39 – 27:25 – The Importance of Sales Conversations: Shiv stresses the importance of clear sales processes and managing client expectations upfront, ensuring alignment with the agency’s focused services.
27:26 – 34:50 – Post-Acquisition Strategy: Shiv outlines how post-acquisition marketing strategies must align with the new owner’s goals, focusing on budget efficiency, strategic cross-selling opportunities, and operational improvements to drive value.

Show Notes

Shiv’s Website: https://www.howtosaas.com/
Shiv's LinkedIn: https://www.linkedin.com/in/shiv-n22/...
New Book: Exit-Ready Marketing https://www.amazon.com/Exit-Ready-Mar...
Old Book: Post-Acquisition Marketing https://www.amazon.com/Post-Acquisiti...