Patrick McKenzie
@patio11 United States201K followers
patio11: Bingo Card Creator, Appointment Reminder, Stripe Atlas and Bits about Money
Bingo Card Creator, Appointment Reminder, Starfighter +2~$275K/yr sales, ~$200K pro…
exit story · 2016 · saas founders
Appointment Reminder acquisition (2016)
Appointment Reminder was built by Patrick McKenzie and sold in 2016. At the time of the sale it made Low six figures in annual sales (self-reported).
Key facts
- Buyer
- Undisclosed
- Year
- 2016
- Price
- Undisclosed
- Revenue at sale
- Low six figures in annual sales (self-reported)
- Years operated
- 6 years
- Channel
- Broker
Why they sold: Patrick McKenzie had been bored with the business for years and didn't enjoy its grind, and when he joined Stripe to work on Atlas he agreed to sell it as soon as commercially feasible.
The story of Appointment Reminder
Appointment Reminder was a SaaS that Patrick McKenzie (patio11) ran from 2010. It sent automated reminder calls, texts and emails for professional-services businesses. Its MRR grew every year, but the business became a background burden while he co-founded Starfighter, and he funded part of that period with debt.
After Starfighter wound down, McKenzie joined Stripe in September 2016. He hired the broker FE International, starting on August 14. Because he had done the server splitting, account migrations and detailed bookkeeping a year in advance, the prospectus took about a day to prepare. The business was listed around September 3 and received four offers within two days.
The buyer was a man named Michael who runs a company that manages a portfolio of SaaS businesses. The price was kept confidential. McKenzie described it as "new house" money, used it to pay off most of his creditors, and stayed on for a 30-day handover plus a few months as backup sysadmin.
Lessons Patrick McKenzie shared
- 1.Preparing the business for sale a year ahead (clean books, separated infrastructure, documented processes) made the sale fast and attractive.
- 2.Professionally kept books substantially increased the valuation.
- 3.Selling while MRR is still growing, rather than after decline, draws far more buyer interest.
- 4.Having to sell on a deadline weakens your negotiating position.
Paraphrased from the maker's public posts and interviews (see sources).
The maker
See the Appointment Reminder product page or Patrick McKenzie's full profile for everything they have built since.
Other exits by Patrick McKenzie
McKenzie had been neglecting the product every year and wanted to avoid a slow decline. He was also taking on the CEO role at Starfighter and wanted the money to fund that and development of Appointment Reminder.
by Patrick McKenzie
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Moritz Dausinger said his personal situation had changed and the risk grew as the business got bigger, and he had long seen a sale of a small-to-medium SaaS as an ideal outcome.
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Selling had been one of Moritz's goals from the start. As the business grew, so did his personal risk, and with no outside investors he felt no pressure to go big. He also described the money as life-changing security.
by Moritz Dausinger
Sources
Facts are taken from the maker's and buyer's public statements and press coverage. Prices and revenue are shown only when publicly stated; self-reported figures are not independently verified.
Keep exploring
Appointment Reminder acquisition FAQ
Who bought Appointment Reminder?
The buyer of Appointment Reminder has not been publicly disclosed; the sale happened in 2016.
How much did Appointment Reminder sell for?
The price was not publicly disclosed. At the time of the sale Appointment Reminder made Low six figures in annual sales (self-reported).
Why did Patrick McKenzie sell Appointment Reminder?
Patrick McKenzie had been bored with the business for years and didn't enjoy its grind, and when he joined Stripe to work on Atlas he agreed to sell it as soon as commercially feasible.
How long did it take Appointment Reminder to get acquired?
Appointment Reminder was sold about 6 years after launch, through a broker (sold through an M&A broker such as FE International or Quiet Light).
What did Patrick McKenzie learn from selling Appointment Reminder?
Preparing the business for sale a year ahead (clean books, separated infrastructure, documented processes) made the sale fast and attractive. Professionally kept books substantially increased the valuation.