Lineage: The ETA Podcast

International Expansion: From $3.5M to $35M ARR in Three Years | Pawel Malon on LineageMost operators dream of taking their business beyond the home market. Few actually pull it off. International expansion is brutal: which market first, direct or partner, when to hire locally, what to centralise. Get the sequencing wrong and you burn capital before you find the playbook.Pawel Malon is CEO of Singu, a leading facility, maintenance, and ESG management software platform for commercial real estate. He acquired the business in 2023 together with his co-founder Marek Jakubow through a traditional search fund, when Singu had 45 people in Krakow and roughly $3.5 million in ARR. Three years later, Singu is at $35 million ARR, 250 people, over 40 countries, and seven offices. In 2025 he exited to K1 Investment Management and continues as CEO, now running a pan-European buy and build with three acquisitions in the last twelve months.In this episode, Pawel walks through the full playbook: the failed US entry six months after acquisition, what he did differently in Germany, the four expansion routes he has tested, how the organisation is structured across seven countries, and the 18-month threshold he now gives every new market.What you’ll learn in this episode:→ The readiness signals that matter: net revenue retention, land and expand, CAC→ Four expansion routes: land and expand, organic, M&A, partners→ Premature signals operators mistake for readiness→ Why the US entry failed: one reference customer, 1 to 2 percent of capacity, pulled after nine months→ Why Germany worked: 20 to 30 percent of capacity spent before hiring a single salesperson→ Hiring the first local salespeople and six months of founder-led selling→ Direct presence vs. customer presence: how Singu scores markets→ Why M&A became the entry route into the US and Germany→ Centralised C-suite, local go-to-market: running 250 people across seven offices→ The 18-month hard stop for any new market→ Confidence vs. arrogance: the one lesson that runs through everythingChapters:00:00 Introduction to Pawel Malon and Singu01:05 Singu in 2023: 45 people, $3.5M ARR, one large customer02:19 The search thesis: international expansion as the value driver05:16 Readiness signals: retention, land and expand, CAC07:28 Market prioritisation: US, Germany, UK, Mexico08:41 Four expansion routes: land and expand, organic, M&A, partners09:36 Partner models: value added resellers and system integrators11:37 Premature signals operators mistake for readiness14:46 The US entry in 2023: what went wrong17:01 No substitute for time on the ground18:57 Pulling out of the US after nine months21:37 The Germany entry: preparing before entering25:07 Capacity spent: Germany 20 to 30 percent vs US 1 to 2 percent25:39 Pricing in a new market26:32 Founder-led sales and the first German deals27:13 Hiring the first local salespeople28:29 Six months of hand holding29:32 Singu today: 40 countries, seven offices30:50 The repeatable market entry playbook and product localisation32:31 Direct presence vs. customer presence: scoring markets34:03 Re-entering the US via M&A and Mexico35:35 Search phase vs. post-exit: growth vs. margin and the decision to sell39:10 Why buy vs. build: Micad, Symbiotics, NetHouse42:00 Organic vs. inorganic: the favourite child43:07 M&A lesson: customer migration is change management44:48 Organisation at 250 people: centralised C-suite, local go-to-market48:39 Vision 2030: pan-European champion, $100M ARR49:28 The 18-month threshold for a new market50:45 Closing advice: confidence vs. arroganceConnect with Pawel Malon: https://www.linkedin.com/in/pawelmalon/

Buy and Build: 60 Acquisitions in 17 Countries | David Schenavsky on LineageBuy and build is the most talked-about value creation strategy in small business investing, and the least understood in practice. Every add-on is its own deal, its own integration, and its own set of people problems. Doing it repeatedly without breaking the platform is where most acquirers fail.David Schenavsky spent nearly eight years inside one of the most active buy-and-build machines in the German Mittelstand. At Tentamus Group, the Berlin-based laboratory group, he joined in 2017 when the first platform, bilacon, had just a handful of add-ons, and left as Head of Corporate Development and Country Manager Benelux with the group at roughly 4,500 employees and over 100 sites across Europe, the US, Asia, and Israel. Along the way he was involved in around 60 acquisitions in 17 countries. Since 2024 he has been part of the founding team of Assessimus Group, a new testing, inspection, and certification platform built from scratch, now operating across Germany, the UK, and the US.In this episode, David walks through the full buy-and-build playbook: what a platform needs before its first add-on, how to source off-market deals with founder-owners, how to value and structure small acquisitions, what minimum viable diligence looks like, and how to integrate without destroying what you just bought.What you'll learn in this episode:→ Why stability beats size when choosing a platform→ What makes a good add-on and why smaller and healthy beats bigger and broken→ Sourcing off-market deals through accreditation lists, networks, and personal outreach→ Winning founder trust through autonomy, brand retention, and a decentralised model→ Valuing on normalised post-closing EBITDA and aligning the baseline early→ Why a two-page LOI in plain English closes more deals than a ten-page one→ Explaining earn-outs and rollover equity to first-time sellers→ Founder retention: 51 to 90 percent stakes and why a 10 percent stake is not an incentive→ Red-flag diligence: what to check, what to skip, and the risks that only show up after closing→ Centralise vs. decentralise: why there is no one-size-fits-all and consistency matters moreChapters:00:00 Introduction to David Schenavsky01:10 Tentamus and Assessimus: setting the stage03:45 Why lab testing is a buy-and-build industry05:43 Platform vs. add-on: what Tentamus had and Assessimus lacked08:56 Stability before scale: what a platform needs10:16 What makes a good add-on13:08 Off-market sourcing and the first founder conversation16:19 Winning trust: autonomy, brand, and the decentralised model20:34 Deal sizes and no-go criteria21:51 Valuation and normalised EBITDA25:13 Transparency, mini commercial DD, and aligning the baseline27:28 What goes into a two-page LOI30:40 Explaining earn-outs and rollover to first-time sellers32:16 Founder retention and transition structures34:31 The LOI as a tool: keep it short36:43 Majority stakes and incentive alignment40:03 Group-level vs. company-level incentives42:33 Minimum viable diligence: red-flag reports45:14 What diligence misses: unwritten rules and sector nuance48:23 SPA negotiation: disclosure schedules and keeping lawyers in their lane51:24 Centralise vs. decentralise: no one-size-fits-all55:53 Synergies: subcontracting and cross-selling57:53 When deals did not work out60:10 Deal cadence: how many acquisitions per year62:27 Advice for the first add-on64:50 Trust and transparency: getting deals over the lineConnect with David Schenavsky: https://www.linkedin.com/in/david-schenavsky-151a4279/

Exits to Strategic Buyers | Dylan Collins on LineageEvery ETA operator underwrites an exit from day one. Most assume it will be a sale to PE or another financial buyer. But there is a second path that often pays more and gets overlooked: the strategic buyer. Strategics do not buy multiples and cash flows. They buy capability, exclusivity, and a position in their own market, and they will pay far beyond any financial valuation when a business gives them exactly that.Dylan Collins has sold to strategics four times. DemonWare, whose multiplayer technology powered Call of Duty and dozens of AAA titles, sold to Activision Blizzard. Jolt Online Gaming, a European social games roll-up, sold to GameStop. Potato, a marketing technology agency where he was Chairman, acquired by WPP. And SuperAwesome, the kidtech platform he sold to Epic Games and grew to $120 million in revenue. Three years later, he bought most of it back.In this episode, Dylan breaks down how strategic buyers actually think, why relationships matter more than process, what career risk means inside an acquirer, and how to run reverse diligence on the company trying to buy you.What you'll learn in this episode:→ Why businesses are bought, not sold, and why strategic deals need relationships→ Career risk: the invisible friction inside every acquirer that kills deals→ How to run reverse diligence on a buyer without offending them→ Why early acquisition offers are signals, not triggers→ The difference between strategic and PE buyers on vision, culture, and timeline→ Structuring transformation deals and why earn-outs go stale fast→ What strategics expect: lock-ins, earn-outs, escrow, and EBITDA hurdles→ Why hitting your numbers is the only real leverage in a negotiation→ Rolling equity into acquirer stock and when that trade makes senseChapters:00:00 Introduction to Dylan Collins01:15 What makes a strategic buyer say yes03:12 What strategics actually look for beyond the product05:48 Career risk: the hidden friction inside every acquirer07:13 DemonWare and Activision: when your biggest customer buys you09:27 Why early acquisition offers are signals, not triggers10:36 Jolt and GameStop: the digital transformation play14:37 Structuring transformation deals and why they go stale18:21 Roll-up logic: why sell instead of continuing to buy21:22 How to run reverse diligence on your acquirer26:05 SuperAwesome and Epic: preparing investors for a strategic buyer29:30 The SuperAwesome journey from media roll-up to platform31:44 Epic's first contact and the deal process33:54 Timeline: from first meeting to signing in under 90 days35:29 Building relationships with strategics before you need them38:16 The humbling exercise of testing your value with buyers41:33 Why revenue was not the gating factor for Epic43:00 Vision versus operational plan: strategic vs PE expectations44:41 The personal decision: why sell when you could keep building48:26 Rolling equity into acquirer stock51:03 What strategics expect in the deal: lock-ins, earn-outs, escrow52:31 The only real leverage in a negotiation54:45 Closing advice for first-time operatorsConnect with Dylan Collins: https://www.linkedin.com/in/dylanc/#ETA #SearchFunds #Exits #MergersAndAcquisitions #StrategicBuyers #SmallBusiness #Entrepreneurship

Hiring and Organisational Design for First-Time CEOs | Florian Heinemann on LineageThe difference between a company that scales and one that stalls is rarely the idea. It is almost always the execution, and execution comes down to organisation and people. For an ETA operator walking into a business with fifteen, thirty, or a hundred people hired by someone else, the first hires and the first structural decisions shape everything that follows.Dr. Florian Heinemann is founding partner of Project A Ventures, one of Europe's most successful operational VCs. Few people in Europe have thought as deeply about how organisations get built, who to hire first, and what makes early people decisions compound over time. He co-founded JustBooks in 1999 and sold it to Amazon, ran online marketing at Jamba and iLove, was Managing Director at Rocket Internet where he was instrumental in scaling Zalando, and has spent the last thirteen years at Project A backing over 130 companies with an in-house team of 120+ operational experts who work directly inside portfolio companies. Project A now also co-invests alongside PE funds in traditional businesses, giving Florian a rare view into both startup and Mittelstand contexts.What you'll learn in this episode:→ Why the first hire in every function sets the ceiling for what follows→ How to balance experience versus potential when hiring under constraints→ Structuring equity and ESOP packages for C-level and beyond→ How to identify potential in candidates and what actually predicts it→ Where to invest in professionalism first (defence before offence)→ How to build a value creation hypothesis before you even close the deal→ Assessing existing talent inside a business you just acquired→ Driving digital and AI transformation in traditional businessesChapters:00:00 Introduction to Florian Heinemann and Project A01:12 The importance of early hiring decisions04:41 Hiring under constraints: balancing experience and potential07:54 Incentivizing talent: equity vs. salary09:37 Structuring employee incentives for success14:22 Evaluating potential: key characteristics to look for18:53 Identifying needs: the first steps for new CEOs21:31 Value creation in private equity investments24:52 Hiring for potential vs. experience29:51 Empowering teams for growth35:49 Assessing talent in acquired businesses38:36 Driving digital transformation in traditional businesses41:14 Key advice for new operatorsAbout LineageLineage is a podcast for aspiring searchers, ETA operators, and succession entrepreneurs. Every episode is a targeted conversation with someone who has been in the chair, made the decisions, and lived with the consequences. No panels, no theory, no fluff.Connect with Florian Heinemann: https://www.linkedin.com/in/florianheinemann/#ETA #SearchFunds #Hiring #Leadership #SmallBusiness #Entrepreneurship #SuccessionEntrepreneurship

Making AI and Software Work Inside Legacy Businesses | Sebastian Schuon on LineageMost ETA operators inherit a business that runs on outdated software, manual processes, and a team that has never worked any other way. The instinct is to digitise fast. The reality is that most software projects fail not because the technology is wrong, but because the people part is mishandled.Sebastian Schuon is co-founder of Stylight (exited to ProSiebenSat.1) and Alasco, and is now building Schub, a Munich-based accelerator and AI tooling company. He is also personally acquiring and transforming traditional service businesses with technology. In this episode, he shares the playbook for selling change inside resistant industries, the order in which to digitise and improve, and where AI actually creates leverage in a legacy business.What you'll learn in this episode:→ Why software projects fail and how to avoid the most common traps→ How to sell change to a team that did not ask for it→ Stakeholder interviews and finding internal champions→ The right sequence: stabilise, digitise, then improve→ Where AI creates real leverage in legacy operations→ Cybersecurity and cloud risks operators must take seriously→ Why trust matters more than technology in the first 100 daysChapters:00:00 Introduction to Sebastian Schuon and Schub01:17 Why software projects fail: the human factor03:10 Selling change alongside the software05:27 Stakeholder interviews, benefits, and rollout timelines07:02 Asking the right questions and finding champions09:37 Best low-hanging fruits: support functions and flexibility11:20 Adoption blockers: real limitations vs resistance14:43 Cybersecurity, cloud software, and social engineering17:53 Buying a legacy business and why trust matters21:05 Stabilizing, digitizing, then improving processes24:12 AI-assisted internal tooling and fast software building27:01 Internal versus external processes in transformation32:29 AI's impact on efficiency and legacy system integration35:35 Hiring a change agent and leading transformation through peopleWebsite: https://www.schub.space/Linkedin: https://www.linkedin.com/in/schuon/

Most ETA operators eventually face the same situation: the business they acquire has a solid product and paying customers, but no real commercial engine behind it. No marketing, no structured sales, no outbound, no content. Benny Hahn is answering that situation inside ZEP, a 20-year-old German time tracking and project management software company he acquired through a traditional search fund in 2022.In this episode, Benny shares how he built a go-to-market from scratch and transformed ZEP from a legacy licensing business into a growing SaaS company, and what ETA operators can learn from that playbook.What you'll learn in this episode:→ How to diagnose what is broken in a go-to-market you inherit→ When and why to invest in a full rebrand and website relaunch→ Building a marketing and sales team from the ground up→ The KPIs that actually steer a recurring revenue business→ Structuring sales with MQLs, SQLs, and pipeline ownership→ Designing commission structures and realistic sales targets→ Migrating existing customers from on-premise licences to SaaS→ Communicating pricing model changes without losing loyal customers→ How to sequence change when the team and customers are watchingTimestamp:00:00 Introduction to Benny Hahn and ZEP01:10 Initial observations on marketing and sales after acquisition01:53 Restructuring marketing and sales processes02:43 Discrepancies between product quality and marketing03:30 Quick wins with Google Ads and early marketing moves04:33 Hiring an agency for rebranding and website relaunch06:28 Reflections on the rebranding process08:57 Advice for new CEOs in similar situations10:22 Building the marketing stack from scratch11:16 The KPIs that matter and how they evolved13:45 Structuring the marketing team14:44 Sales pipeline structure and strategy16:45 The MQL to SQL transition18:44 Tools and change management in sales21:32 Hiring strategy and team specialisation24:18 Commission structures and sales incentives26:20 Setting realistic targets and top-down planning30:06 Targeting larger accounts as the business evolves31:14 The transition from on-premise to cloud34:28 Pricing strategies and customer negotiations37:21 Simplifying complex pricing structures40:40 Managing customer migration and expectations42:16 Key metrics for steering the business45:07 Final advice for new operators and CEOsLinkedin: Benny Hahn https://www.linkedin.com/in/benny-hahn/?locale=enWebsite: https://www.zep.de/

Most operators eventually face the same question: the business works here, but can it work somewhere else? A new geography, a new customer segment, a new channel. Jonathan Weiss is answering that question inside BEGO, a German dental manufacturer founded in 1890 with operations in over 100 countries.In this episode, Jonathan shares how he transformed and built BEGO USA as a subsidiary into a growing business by shifting from a product-first mindset to a customer-centric workflow approach, and what ETA operators can learn from that playbook.What you'll learn in this episode:→ How to diagnose whether a new market is a real opportunity or just an assumption→ Why shifting from selling products to solving workflows changed everything→ Building trust and communication between a subsidiary and HQ across borders→ The case for narrowing your product focus and reducing complexity to accelerate growth→ Cultural and operational differences that catch every operator off guard in a new market→ How to grow revenue without scaling headcount proportionally00:00 Introduction to Jonathan Weiss and BEGO01:25 BEGO USA's Challenges03:05 Understanding Market Entry Strategies05:31 Customer Insights and Field Research08:07 Operational Changes and Go-to-Market Strategies10:22 Shifting Company Identity and Product Focus12:31 The Role of Family Business in Leadership14:17 Hiring Strategies for New Markets16:26 Deciding on Market Expansion17:51 Team Structure and Efficiency20:49 Streamlining Operations for Growth21:56 Optimizing Sales Processes23:12 Aligning with Headquarters25:18 Navigating Communication Challenges28:10 Best Practices for HQ-Subsidiary Relations30:11 Cultural Insights for Market Entry31:46 Testing Product Market Fit34:45 Focusing on Core Products36:22 Building Competitive Moats38:45 The Importance of Team DynamicsWebsite: https://www.bego.com/de/

Most first-time CEOs underestimate how much trust, intuition, and emotional intelligence shape successful acquisitions and what it takes to successfully integrate an outside business into your own.Jochen Engert co-founded FlixBus in Munich in 2013. Within two years, he and his co-founders merged with their fiercest rival, MeinFernbus, creating a dominant national network almost overnight. In 2016, they absorbed PostBus and Megabus’s European operations, pushing their German market share above 80%. In 2019, they entered Turkey by acquiring Kâmil Koç. And in 2021, in the middle of a global pandemic, they acquired Greyhound, a 107-year-old American icon, and began its transformation.Drawing on experience from more those specific acquisitionsns plus a two dozen more transactions, Jochen explains why relationships and clear communication often matter more than spreadsheets and formal processes.What you'll learn in this episode:→ When M&A makes sense and when organic growth is the better path→ How to build deal relationships long before a formal process starts→ Building a synergy case line by line through the P&L→ Who to talk to during due diligence beyond the data room→ Structuring earnouts and deferred payments that don't create conflict→ Why integration breaks on the human side first→ Making hard decisions early instead of letting ambiguity festerWhether you are preparing for your first acquisition or refining your approach, this episode gives you the tools to make better decisions, negotiate more effectively, and execute with confidence.00:00 - Introduction01:30 - Buy vs Build Decision02:37 - Challenges in Acquisitions03:48 - Starting Conversations05:11 - Long-term Relationship Building06:36 - Quantifying Synergies07:56 - Building a Business Case11:29 - Understanding the Target13:40 - Human Element in Deals16:39 - Role-playing in Negotiations19:00 - Risk Management20:55 - Aligning Incentives23:31 - Diligence Insights26:00 - Market Entry Considerations29:50 - Balancing Workload32:57 - Human Side of Integration36:30 - Leadership Decisions38:55 - Strategic Branding42:56 - Adjusting to New Environment Post-Merger44:20 - Integration Strategies49:05 - Key Advice

Navigating the First 100 Days After Business Acquisition The first 100 days after acquiring a business will define the next five years of running it. In this episode, Julian Beckh, self-funded searcher and nine-year operator of Behälter KG Bremen, shares what actually works when you walk into a business you didn't build, with a team that didn't choose you.From his mental shift out of deal-mode on day one, to the communication that earns trust, to the small early changes that signal everything to the team, Julian breaks down what he got right, what he got wrong, and what he would do completely differently today.What you'll learn in this episode:→ Crafting your first communication to the team→ Building a knowledge inventory before taking over→ Listening and reading culture before acting→ Making early changes that signal direction without disruption→ Running one-on-ones that surface what matters→ Handling personnel misalignments without losing trust→ Why humility and curiosity matter most in month oneTimestamps:01:03 - Navigating the First 100 Days' Strategic Importance02:09 - The Pre-Day One Mental Shift for Operators03:30 - Preparing Communication and Knowledge Inventory04:41 - Communicating Legacy and Intentions to the Team05:17 - Handling Unexpected Start and Improvisation06:06 - Engaging with Employees for Feedback and Cultural Understanding07:25 - Overcoming Age-Related Concerns in Succession09:13 - Structuring Effective Handovers and Reducing Dependency11:17 - Emphasizing Quick, Focused Knowledge Transfer12:33 - Key Functional Areas Where Previous Owner’s Knowledge is Critical14:35 - First 30 Days: Curiosity Versus Quick Change16:03 - Asking the Right Questions and Building Authentic Understanding17:38 - Personal Conversations Revealing Hidden Assets or Challenges19:55 - Handling Resistance and Constructive Criticism22:02 - Managing Team Communication During Transitions25:44 - Implementing Small, Non-Disruptive Improvements28:48 - Avoiding Fast Enforcement of Changes; Building Trust30:09 - Recognizing When Personnel Roles Need Realignment31:51 - How to Approach Personnel Changes Compassionately33:02 - The Gradual Transition from New Owner to Recognized Leader35:00 - Final Advice for Upcoming Acquisitions: Humility, Curiosity, and Enjoying the Journey

Search Fund Pitfalls – What First-Time CEOs Should Look Out ForAre you looking to acquire a business, start a search fund, or step into the CEO role for the first time? In this episode, Thomas Bühler, one of the most experienced search fund and ETA investors, shares his perspective on the realities of search funds and the critical first year after an acquisition.We discuss why many searchers never close a deal, the myth of the “perfect” acquisition, and the realities of working with investors, negotiating seller notes, and managing hidden due diligence risks such as customer concentration. We also talk about what it takes to become a strong CEO and how to handle the often challenging transition period when the original founder remains involved for too long.Whether you are an aspiring entrepreneur, an active searcher, or a newly appointed CEO, this conversation is full of practical insights to help you navigate the search fund journey successfully.Link to the IESE Search Fund FindingsPart 1: https://www.iese.edu/media/research/pdfs/ST-0680-EPart 2: https://www.iese.edu/media/research/pdfs/ST-0681-E00:03 - Introduction 01:00 - Why Most Searchers Fail to Close a Deal05:35 - The Ideal Number of Investors for a Search Fund07:21 - The Myth of the "Perfect" Search Fund Deal09:14 - The Importance of a Strong CEO10:08 - How to Work Effectively with Investors Early On13:23 - The First Year as CEO: Managing People & Change17:25 - Balancing Learning vs. Changing the Business (The First 90 Days)18:31 - Common Mistakes: When the Seller Sticks Around Too Long20:43 - Negotiating Seller Notes & Bank Involvement25:02 - Where Searchers Should Spend Their Time in the First 6 Months25:58 - Best Practices for Working with Your Board29:01 - Early Warning Signs of Poor Company Performance30:29 - How to Manage and Motivate Employees After a Takeover34:23 - The Most Underestimated Due Diligence Risk: Customer Concentration38:38 - Final Advice for New Searcher CEOs