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 · 2015 · saas founders
How Patrick McKenzie Sold Bingo Card Creator to Two Teachers, LLC (2015)
Bingo Card Creator was built by Patrick McKenzie and sold to Two Teachers, LLC in 2015 for 2-4x SDE (trailing twelve months' seller discretionary cash flow; exact figure undisclosed). At the time of the sale it made Under ~$60K/yr in software sales (its best years reached nearly that), ~60% margin.
Key facts
- Buyer
- Two Teachers, LLC
- Year
- 2015
- Price
- 2-4x SDE (trailing twelve months' seller discretionary cash flow; exact figure undisclosed)
- Revenue at sale
- Under ~$60K/yr in software sales (its best years reached nearly that), ~60% margin
- Years operated
- 9 years
- Channel
- Broker
Why they sold: 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.
The story of Bingo Card Creator
Bingo Card Creator was a small desktop and web app that lets teachers make custom printable bingo cards. Patrick McKenzie launched it in 2006 as a nights-and-weekends project while working at a Japanese company. He used it as a public laboratory for SEO, A/B testing and email marketing, and his detailed annual reports with real numbers influenced many bootstrappers.
In good years it sold nearly $60K of software at about a 60% margin. In January 2015 McKenzie contacted the broker FE International, then spent a few months decoupling the product from his other business and preparing a prospectus and due diligence. A teacher couple operating as Two Teachers, LLC bought it, with a backup buyer in the process. The whole sale took about five months.
Handover went through escrow, with accounts and domains transferred and about a month of planned support that stretched to roughly two months. McKenzie also sold Appointment Reminder through FE International the following year.
Lessons Patrick McKenzie shared
- 1.Use a broker.
- 2.Don't share bank accounts, books or SaaS accounts between businesses you may want to sell separately.
- 3.Have the last year's books done professionally before selling.
Paraphrased from the maker's public posts and interviews (see sources).
The maker
See the Bingo Card Creator product page or Patrick McKenzie's full profile for everything they have built since.
Other exits by Patrick McKenzie
Appointment Reminder
buyer undisclosed · 2016
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.
by Patrick McKenzie
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Tyler Tringas wanted to diversify his income away from a single business, lock in a win, and focus full-time on his next project.
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Snappy
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Ian Landsman said Snappy was a good app but not a good business for UserScape. Its low price point needed huge customer volume, and the small team's time was better spent on its main product, HelpSpot.
by Ian Landsman
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
Bingo Card Creator acquisition FAQ
Who bought Bingo Card Creator?
Bingo Card Creator was acquired by Two Teachers, LLC in 2015 from Patrick McKenzie.
How much did Bingo Card Creator sell for?
Bingo Card Creator sold for 2-4x SDE (trailing twelve months' seller discretionary cash flow; exact figure undisclosed), as publicly stated. At the time of the sale it made Under ~$60K/yr in software sales (its best years reached nearly that), ~60% margin.
Why did Patrick McKenzie sell Bingo Card Creator?
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.
How long did it take Bingo Card Creator to get acquired?
Bingo Card Creator was sold about 9 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 Bingo Card Creator?
Use a broker. Don't share bank accounts, books or SaaS accounts between businesses you may want to sell separately.