QuickBooks App Portfolio Strategy

Build a portfolio of QuickBooks and Xero apps through acquisitions, then cross-sell between platforms and create synergies. The strategy leverages the massive user base of these accounting platforms (QuickBooks has ~30M users) and the sticky nature of accounting software.

Key Points:

• Target Apps to Acquire:

  • Look for apps doing $2-3M in revenue
  • Focus on apps with good reviews and engagement
  • Identify undervalued or mismanaged opportunities
  • Study app store categories and tags to gauge market size

• Portfolio Strategy:

  • Buy multiple apps in the $2-6M revenue range
  • Exit multiple of ~5x
  • Combine apps to build $10M+ ARR business
  • Cross-sell between different apps in portfolio

• Cross-Platform Expansion:

  • Port QuickBooks apps to Xero platform and vice versa
  • Retain customers even if they switch platforms
  • Connect multiple ecosystems (e.g., QuickBooks + Shopify or QuickBooks + WordPress)

• Value Creation Opportunities:

  • Cross-sell to existing customers
  • Improve mismanaged apps
  • Create platform synergies
  • Leverage essential nature of accounting tools

• Market Dynamics:

  • Accounting platforms are very sticky
  • Large existing user base to sell into
  • Essential business tool that customers rely on
  • Opportunity to consolidate fragmented app ecosystem