Going Global: Humourous Lessons from Certn CEO Andrew McLeod
As a founder, the prospect of taking your business global can be both exhilarating and daunting. The opportunity to tap into new markets and accelerate growth is tantalizing, but the challenges of navigating cultural differences, technical integrations, and unfamiliar regulatory landscapes can quickly become overwhelming.
I had the opportunity to hear Andrew McLeod, CEO of Certn, on the main stage at SaaS North 2024. He shared Certn’s journey from a small team to a global company of 435 employees across 13 countries. His tales of cultural clashes, unexpected lawsuits, and even a 30-pound weight gain provided a refreshingly honest and humorous look at the realities of going global.
Here are his top lessons from the trenches.
1. Expect the Unexpected (and Double Your Estimates)
When Certn first set its sights on the UK market, Andrew thought his prior experience living in the country would give him an edge.
“I thought, ‘Hey, I’m basically English. I can do a terrible English accent. I play soccer pretty well. I play rugby. So we should expand Certn into the UK,'” he recounted.
“Well, after not living in the UK for 20 or so years, moving to the UK or buying a business in the UK was a lot more challenging than you’d expect, even with my experience.”
The cultural differences in communication styles, decision-making processes, and even social norms caught the Certn team off guard. What they thought would be a smooth integration quickly devolved into awkward Zoom calls and stalled initiatives. “Sometimes these interactions were a bit, well, awkward, as I’m trying to do a deal over the phone,” Andrew said. “How come this deal is not progressing? How come this deal is not progressing?
And our head of sales in the UK is like, ‘You better take this one to the pub,’ and literally, like, the close rate once you got to the pub, 100%.”
The lesson? Don’t underestimate the time, cost, and cultural nuances involved in expanding overseas. Andrew advises founders to “double the time and the money” when budgeting for international growth – and even then, be prepared for the unexpected, including gaining a bit of weight from the pub.
2. Vet Acquisition Targets Ruthlessly
Certn’s second major international expansion was into Australia, where the team decided to acquire an existing business rather than build from scratch. This decision, however, came back to haunt them.
“Countless people would say to me, ‘I’ve got some concerns about the founder of that business. That might be why it hasn’t sold yet.’ And I’m like, ‘No, no, don’t worry.
Don’t buy a business where you wouldn’t hire the founder.
That just seems easy, but don’t,'” Andrew recalled. Sure enough, the founder’s questionable character and practices soon came to light, leading to a series of legal battles and HR nightmares for the Certn team.
“For the record, I violated nobody’s human rights, but I made a fundamental flaw in doing an acquisition in Australia, and it’s kind of one of the lessons that I’ll talk about,” Andrew said.
The takeaway? Trust your gut, even if the numbers look good. If there are any red flags about the founder or leadership team of a potential acquisition target, walk away. It’s simply not worth the headache and risk down the line.
3. Prioritize Post-Merger Integration
Many founders make the mistake of celebrating the deal closure and then shifting their focus elsewhere. But as Andrew learned, the real work – and the real payoff – comes in the integration phase.
“Naively, when we first started doing acquisitions, the celebration happened when the deal was done, and then after that it lost. It lost the focus that it really needed,” he said.
“You really should be having the party when you hit the milestone in your post merger integration that you can really celebrate, because that’s when the business starts to really take off.”
In Certn’s UK acquisition, the team made cultural integration a top priority, sending Andrew and other key leaders to spend extended time on the ground. This hands-on approach paid dividends, with the business doubling its MRR within just a few months of the integration milestones being met.
On the flip side, the team’s focus on technical integration in the Australian acquisition came at the expense of people and culture – leading to the loss of half the sales team.
Each situation is unique and requires a unique approach.
To wrap up, Andrew summarized that in the UK, the focus was on people integration, leading to cultural clashes and weight gain. In Australia, the focus was on technical integration, but issues arose with the founder’s character.
In the end, Andrew emphasized the importance of trusting local teams, doubling budget estimates for international projects, and embracing the chaos of global expansion.