Buy the Next Big Thing Instead of Building One with Matthew Tse, CEO of ImprovMX

In this episode, Matthew shares his transition from software engineer to acquisition entrepreneur, detailing his journey through early entrepreneurial experiments, the challenges of bootstrapping SaaS businesses, and his decision to acquire ImprovMX rather than build from scratch. He discusses the acquisition process, key evaluation criteria, initial fears, and the lessons learned from analyzing hundreds of listings before making his final decision. Matthew also explores business valuation, funding strategies, and his long-term vision for acquiring and scaling multiple SaaS businesses.

About Matthew Tse:

Matthew Tse is a software engineer turned acquisition entrepreneur. After early experiments in bootstrapped SaaS and a failed cryptocurrency startup, he pivoted to acquiring established businesses. In 2024, he purchased ImprovMX, an email forwarding SaaS, leveraging his technical expertise to scale operations. Matthew focuses on long-term business growth through strategic acquisitions, prioritizing organic growth and operational efficiency.

Here is what we cover:

• Transitioned from software engineering to acquisition entrepreneurship after bootstrapping challenges.
• Chose acquisition to bypass product-market fit risks and secure an existing revenue stream.
• Evaluated numerous SaaS listings, prioritizing technical complexity and organic growth.
• Selected ImprovMX for its strong inbound demand and alignment with his expertise.
• Focused on stabilizing operations, retaining employees, and enhancing customer experience.
• Emphasized deep research, strategic patience, and aligning business acquisitions with core competencies.
• Recognized the valuation challenges of SaaS acquisitions and the competitive advantage of cash offers.
• Plans to expand through additional acquisitions while reducing direct operational involvement.