In this article, we explore Kevin Peterson’s impressive journey in the staffing industry and his transition into the world of SAS (Software as a Service) companies. Kevin was the 13th employee at a staffing industry startup that experienced remarkable growth, reaching a market cap of $4 billion and going public in 1996. After spending 20 years in consulting, Kevin founded Growth Stack Inc., a SAS portfolio aimed at achieving an IPO within the next 30 months.
Under the Growth Stack label, Kevin’s company acquires and integrates B2B SAS companies. He shares insights into his playbook for finding, pricing, and convincing founders to sell their companies. Reflecting on his first deal, Kevin reminisces about buying a tattoo blog for $900 and leveraging his marketing background to enhance its value. Within 90 days, the blog was generating $750 in monthly profit, igniting Kevin’s passion for acquiring online businesses.
Kevin’s journey into the SAS industry took off with his first SAS acquisition, Pick Rail. He bought the company for approximately $1 million, with annual recurring revenue (ARR) exceeding $300,000. Financing the acquisition came from individual investors who trusted Kevin to deliver returns on their capital. Over time, Kevin expanded his investor base and raised significant funds to build portfolios of SAS companies.
The article delves into the challenges and successes Kevin encountered during his ownership of Pick Rail, which experienced substantial growth in revenue but ultimately faced declining revenue before its recent exit. Despite not selling at the peak of its success, Kevin’s investment in Pick Rail proved profitable.
Currently, Kevin operates four SAS brands, with a combined annual revenue approaching $1.5 million. Long Tail Pro stands out as the largest revenue generator, contributing over half of the total revenue. Kevin emphasizes the appeal of B2B SAS companies due to their recurring revenue model and the ability to provide valuable solutions to businesses.
Looking ahead, Kevin Peterson remains focused on his goal of achieving an IPO for Growth Stack Inc. He believes that by acquiring and integrating complementary SAS companies, he can create a synergistic portfolio that will attract investors and drive further growth. Kevin’s track record in the staffing industry and his successful foray into the SAS industry have positioned him as a respected figure in the business world.
Mr. Peterson’s journey in the SAS industry showcases his entrepreneurial spirit, strategic thinking, and ability to identify and capitalize on opportunities. From his early days in the staffing industry to his current role as the founder of Growth Stack Inc., Kevin’s determination and expertise have propelled him to success. As he continues to navigate the competitive SAS landscape, Kevin remains committed to building a robust portfolio of B2B SAS companies and realizing his goal of taking Growth Stack Inc. public.