Types of Tuck-in Acquisitions

Tuck-ins are classified by their primary purpose or benefit.  In many cases a great acquisition fits multiple classifications.

  • Product Expansion/Improvement
    • We typically target smaller companies with unique technology, core expertise, and some reference customers.   An acquisition that acquires a best in class feature or module addition combined with the key people who built it and some great logos accelerates your product roadmap years with a higher probability of success.
    • The real trade off in this acquisition type is build, partner or buy decision.   When you think of building, remember its not just an MVP version that is required.  You need to build the MVP, get customer feedback, and then sell and implement a group of reference customers.  When you think partner, its not just finding, negotiating, papering and announcing the partnership, it is also educating the partner and then selling and implementing a group of reference partners.  Lastly, the buy decision is not only sourcing and closing the tuck-in but integrating the products as required and integrating the staff of both companies.

  • Geographic Expansion
    • A very nature expansion for U.S. companies is to Canada.  The market is roughly 10% of the U.S. market but some incredible technology solutions, the same time-zone, and close cultural similarities. 
    • In most cases, I would recommend holding off expanding to selling in Europe until you are north of $15MM or $20MM of ARR.  Note: You may have international customers who pull you international prior to that but delivering in Europe is different than expanding to Europe with your sales model.
    • It is a very long and expensive road to organically expand to Europe.  If you are going to do it, typically it makes sense to buy a small or modest foothold in Europe to be your team and beachhead.

  • Customer Acquisition
    • Sometimes called book acquisitions, optimally you can buy the customers and transition them to your SaaS platform directly.
    • Frequently, we have structured these as paying for only those customers who transition over to our platform.  In this case you need to make sure you platform is functional equivalent or superior to the tuck-in acquisitions solution.
    • In addition, many times the only key resources needed are the lead customer success individual who has the relationships with many of the customers.
    • Caution: If you are buying just the assets of a company, frequently the customers have a choice of whether to transition to the acquirer.  Many procurement departments use this as an opportunity to shop the business.

On a different dimension, as tuck-ins get bigger, the concept of bolt-on acquisitions make more sense.  Fundamentally, an acquired company runs as a stand alone entity except for G&A functions.  This allows the acquired company to continue on its high growth trajectory without tackling the distracting integration issues immediately.    



  1. I liked your work and the way in which you have shared this article here about Lean Training Consultants Dallas TX for us. It is a beneficial and helpful article for us. Thanks for sharing an article like this.

  2. I liked your work and the way in which you have shared this article here about healthcare banking for us . It is a beneficial and helpful article for us. Thanks for sharing an article like this.

  3. You have posted such excellent information about the Tuck-in Acquisitions. It is beneficial for everyone.Digital Transformation Consultant Chicago. Keep posting.

  4. Very well written article. It was an awesome article to read. Complete rich content and fully informative. I totally Loved it.consulting firms sydney

  5. Your blog took to me an entirely significant spot. It is a beneficial and factual article to enhance knowledge. Thanks for sharing an article like this.Market Research And Evaluation Edmonton

  6. I read the above article and I got some knowledge from your article. Infrastructure Asset Management Conference 2022, It's actually great and useful data for us. Thanks for share it.


Post a Comment

Popular posts from this blog

Great list of B2B GTM metrics

Tuck-in Acquisitions Success Patterns and Anti-Patterns