Launch. Scale. Exit: Terrapinn CEO Greg Hitchen on the Digital Health Festival
Terrapinn recently acquired the Digital Health Festival (DHF), Australia's premier healthcare technology event.
We sat down with Greg Hitchen, Group CEO of Terrapinn, to find out what drew him to DHF, what he looks for in an acquisition, and what the future holds for the event.
What attracted you to the Digital Health Festival, Greg?
We have long held an interest in this space, and the Digital Health Festival (DHF) aligns nicely with Terrapinn's style of events and areas of interest - it’s precisely the kind of "Tech in a Vertical" event we’ve long specialised in.
How did it stand out against its competitors?
DHF is clearly the largest and most credible event of its kind in Australasia.
The leading commercial competitor, by comparison, is scrappy and doesn’t serve the market in the way that DHF does. That combination of scale and credibility made it an obvious choice.
Not to mention, we could clearly see that the potential was abundant. Our assessment identified that we could achieve at least 30% growth in Year One — and in fact, that figure will be exceeded. This is the kind of early momentum that you want to see.
What's the ideal minimum number of editions you look for in a potential acquisition, and what were your thoughts on DHF's maturity?
We generally look for around three editions as a minimum.
DHF's maturity was just right — the concept was proven, the fundamentals were strong, and there was still plenty of growth potential ahead. That's the sweet spot.
What is the minimum size you'd consider? How does DHF fit within this?
The minimum revenue we would consider is $1,500,000 — whether that's USD, GBP, or AUD.
The Digital Health Festival was well over that threshold, which gave us real confidence in the event's potential.
How important was the dynamic with the founder in the acquisition process — in terms of both chemistry and market knowledge?
This is perhaps the most important element of any acquisition.
The integrity of the founder and their team, combined with genuine knowledge and passion for the sector, are the things we look for above all else. Without those qualities, even a strong event can be difficult to take forward.
How important is it to you that a founder stays on after acquisition, and what happened in this case?
It is very useful when the founder and their team remain with the business for at least 18 months. In the case of DHF, the founder departed at the point of sale; however, the senior management team stayed on, which made a big difference.
It's also worth noting that in our last four acquisitions, the founders had no intention of staying, and those events are performing well or are on track to do so. This is because, in most cases, we already come to the table with genuine knowledge of and interest in the topic, and we have excellent business systems and people to support the transition.
What management structure was in place supporting the founder, and how important is this when evaluating an acquisition?
With many of the events and businesses we acquire, the management structure — both people and systems — is either not fully available to us or not particularly strong. The ideal scenario is that both the founder and other key relationship holders stay on for a period, but as I've said, it's not a deal-breaker.
What matters most is that the fundamentals of the business are sound.
What advice would you give to a founder building an event today with a future sale in mind?
A few things stand out:
Create projects and formats that can be scaled: Buyers pay a premium for repeatability. If your event can't be replicated in a new market or vertical without you, that's a risk.
Develop a genuine event brand: A strong brand means attendees come back because of what the event stands for.
Don't wait too long to sell: If there's no growth left for the buyer, the deal becomes much harder to justify.
Deploy Accrual Accounting: Only Accrual Accounting gives accurate financial information and is critically important in properly running a business and finding its true value.
Be prepared to stay on: Committing to at least two years post-sale builds trust and smooths the transition.
Be realistic: Unrealistic valuations kill deals. Know what your event is worth and price it fairly.
A number of businesses, like Manta Media Capital, have recently launched to support event founders from inception through to exit. How does that kind of support benefit you as a buyer?
If it enables real scale, growth, and people development, and instils the financial and process discipline that underpins a well-run event business, then that kind of support makes for a better acquisition for everyone involved.
The board of seasoned events professionals at Manta Media Capital acts as an extension of your team, going beyond pure capital investment and injecting hard-earned industry knowledge into your business, too. Take just two minutes to initiate the funding application process with Manta now.