Acquiring Minds The Joy & Pain of Buying a Tech Business
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Sep 1, 2025 Felipe Corcuera, Co-CEO of Beaker, shares his journey of acquiring a robotic process automation company just before AI took off with ChatGPT. He discusses the challenges of navigating imperfect information in the lower middle market and the importance of strategic partnerships. Felipe dives into unique valuation insights, emphasizing personal connections with sellers and the shift towards recurring revenue models. He outlines the highs and lows of being in the AI industry and shares his philosophy on aggressive reinvestment for long-term growth.
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ChatGPT Arrived Days After Closing
- ChatGPT launched 12 days after the acquisition and felt like a gradual industry shock rather than an instant collapse.
- The team created an AI lab in 2023 but only accelerated AI work substantially in 2024.
Turn Projects Into Recurring Contracts
- Convert project revenue into recurring contracts to improve revenue quality even if it pressures cash flow.
- Offer lower setup fees plus multi-year services contracts to increase lifetime value.
Recurring Revenue Creates A Cash J‑Curve
- Converting to recurring revenue can cannibalize short-term top-line while raising future ARR.
- Expect cash constraints while recurring flows ramp and plan financing accordingly.