Acquiring Minds: The Joy & Pain of Buying a Tech Business (Sept 1, 2025)

Podcast Host: Will Smith
Guest: Felipe Corcuera, co-CEO of Beaker
Episode Focus: The challenges and exhilaration of acquiring, transforming, and operating a technology business amid the AI revolution.

Episode Overview

In this episode, Will Smith interviews Felipe Corcuera, who transitioned from investment banking and search fund investing to becoming the co-CEO of Beaker, a company specializing in robotic process automation (RPA) and now, AI agents. The discussion centers on Felipe's acquisition journey, how his business was upended by the introduction of generative AI like ChatGPT, and the fundamental changes required to adapt and thrive.

Key Discussion Points & Insights

1. Felipe’s Career Path and Motivation for ETA

• Felipe hails from Mexico City, with a background in engineering and investment banking at Goldman Sachs, then transitioned to the search fund world after earning his MBA at MIT Sloan.
• Motivation to leave investing for operating:
  • Desire for "earn[ing] some scars" by being on the front lines.

    "I was the Goldman guy, really good at financial modeling, but not really having war stories to tell myself... If I eventually want to go back to investing and be a great investor, I'd rather get some scars myself." (Felipe, 11:47)

• He partnered with Antonio, combining opposite but complementary skill sets for their search journey.

2. Lessons from Search Fund Investing

• The contrast between big M&A at Goldman vs. messy, imperfect info in small business deals was stark.

  "In the micro cap or small cap space, maybe there is not even a customer cohort analysis... you have to be okay with that." (Felipe, 14:52)

• Noted quirky valuation dynamics (industry matters less than size in the lower middle-market).

3. The Partnered Search Process

• Complementing Skills: Felipe handled finance/diligence; Antonio managed outbound/lead gen.

  "I'm really good at everything that's got to do with finance... I'm really bad at being that proactive lead legion guy... Antonio was the exact opposite." (Felipe, 27:36)

• Unified Funnel Structure: Rather than parallel searches, they played to their strengths with a single, integrated process.

  "Each of the two funnels will only be as good as your weakest skill... So instead... Antonio, you take care of the top... Felipe, you take care of the bottom..." (Felipe, 29:54)

4. Search Mechanics & Finders Fees

• The funnel emphasized qualifying leads—key KPI was % of intro calls resulting in NDAs, not just response rate.

  "For me, the most important KPI in a search funnel is the quality of leads..." (Felipe, 33:02)

• Monetizing non-fit but high-quality leads via finders fees:

  "For the buyer group, paying 2% of enterprise value... doesn't even move the multiple... It's a great way to, you know, share deals with others and get a little something in return." (Felipe, 38:40)

5. The Deal: Buying Beaker

• Narrow, industry-focused campaigns, but ultimately acquired Beaker via a geographic search in the Woodlands, TX.
• Seller was realistic despite broker's overvalued suggestions.
• Business model at acquisition (2022):
  • 20% license resale
  • 30% project-based bot development (non-recurring)
  • 50% staff augmentation
  • 140 employees and 40–50 interns
  • $5.5M revenue, $1.4M EBITDA; paid $8.5M (1.6x revenue)

6. Operating Beaker: Pre- and Post-ChatGPT

• RPA sector revolves around implementing complex workflow automations for clients (partners with companies like UiPath).
• Staff augmentation made up half of revenue (unique for tech services); Beaker nurtured university relationships for junior RPA engineers.
• Valuation based on revenue, not EBITDA, due to heavy reinvestment depressing reported profits.

7. The Impact of AI and ChatGPT

• ChatGPT launched 12 days before closing. Initial reaction was muted, but urgency grew through 2023–2024 as client demand for AI surged.

  "When it came out, most people... thought, what a funny fun tool... We never expected agentic AI and AI agents to become something." (Felipe, 64:59)

• Clients demanded generative AI even when their tech infrastructure was unprepared.

  "We were bakers and they wanted us to grill a steak." (Felipe, 67:24)

• Beaker launched an internal AI lab for R&D—a costly but necessary investment for the future.

8. Transforming Revenue Model: Project → Recurring

• Created “Robots as a Service” (RaaS): replaced large, project-based invoices with smaller setup fees and multi-year recurring contracts.
• Realized sales comp needed adjustment to avoid cannibalizing project revenue.

  "We were selling all this RaaS and it's going well, but the top line isn't growing." (Felipe, 68:56)

• Revenue mix now: 7–8% non-recurring, 14–15% license resale, 40% staff augmentation, 40% RaaS/AI agents.

9. The Nature of Staffing in Tech Services

• Beaker's staffing is "easy" thanks to niche specialization and strong training “academy.”

  "You should never stop doing things that feel easy... Staffing sometimes feels like it because we have a solid engine." (Felipe, 76:47)

• Drives strong relationships with logos like PepsiCo, Heineken, Nestle.

10. Long-Term Hold & Reinvestment Strategy

• Felipe and Antonio are deliberately reinvesting, creating a near-term cash crunch but aiming for exponential payoff.

  "We're not looking to sell. So I'd rather reinvest everything and have a low free cash flow number to show for because... we're holding this hopefully for as long as we can." (Felipe, 80:58)

• Backed by Will Thorndike’s research that years 6–7 of ownership produce more value than years 1–5—a rationale for a long-hold approach.

  "The value that's created in years 6 and 7 is the same or slightly more than... years 1–5... The compounding value of your decisions early on will become fruitful..." (Felipe, 82:04)

Notable Quotes & Memorable Moments

• On Operator vs. Investor Experience:

  "You are coaching the searcher who's playing the game on the field... you don't actually have your shoes on. For me, doing that... was exciting and I wanted to try it at least once." (Felipe, 11:47)

• On Search Partnership:

  "We got insulted. Called scammers, thieves, everything you can imagine on a daily basis. It really takes a toll on your mental health." (Felipe, 26:17)

• On Valuations in Search:

  "Companies of the size of search funds typically have similar multiples because of their size, not their industry." (Felipe, 17:49)

• On Finders Fees:

  "If you pay whatever, let's make numbers up... $300,000 between cash and shares, but that’s going to save you 15 months of search, you’re going to save actually a lot of search capital..." (Felipe, 37:24)

• On Buying Beaker:

  "Don't leave any sort of stones unturned... the playbook would say go industry focused and be geographically agnostic... you never know where you’re going to get your deal." (Felipe, 48:24)

• On Adapting to AI:

  "Every board room in the country was talking about AI... all our customers were like, we need AI right now... They didn’t know what they wanted, we didn’t know how to deliver it." (Felipe, 67:24)

• On the J Curve of Value Creation:

  "Before the exponential curve, there's always the J curve... For some companies, it’s a flatter J curve, for others it’s steeper. In our case, it’s..." (Felipe, 85:59)

Timestamps for Important Segments

• Felipe's Background & Move to ETA: 05:51–09:02
• Contrasts in Deal Diligence (Goldman vs. Search): 14:25–16:20
• Search Fund Team Structure/KPIs: 27:36–34:46
• Finders Fees and Monetizing the Funnel: 34:46–42:35
• Choosing Traditional vs. Self-funded Search: 43:45–46:44
• Beaker Deal Origination & Seller Interaction: 47:37–50:53
• Beaker’s Business Model & Numbers: 50:59–61:55
• Immediate Impact of ChatGPT/AI: 64:39–68:33
• Revenue Model Transformation: 68:33–71:15
• Staffing Services & Niche Differentiation: 74:04–77:42
• Long-Term Hold, Reinvestment, and Compounding: 78:33–85:59

Tone and Style

The episode is lively, honest, and at times self-deprecating, particularly around the unpredictability and stress involved in operating and transforming a tech business. Felipe is candid about emotional tolls, operational challenges, and evolving industry landscapes, while Will provides context, sharp questions, and underscores key lessons for the acquisition entrepreneur audience.

For listeners exploring acquisition entrepreneurship—especially in tech—this episode provides a firsthand account of riding the “J curve” of value, the art of navigating both traditional and emerging disruptions (like AI), and the deeply human side of search fund success and stress.