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Building a business from scratch is a journey filled with trial, error, and unexpected pivots. But taking a boot-strapped side hustle, scaling it to over one million followers, and executing an eight-figure exit takes a deliberate strategy.
In a recent episode of The Exit, host Steve McGarry sat down with Heath Adams—co-founder of Breachpoint and former founder/CEO of TCM Security—to discuss how he transformed a YouTube channel into an educational and penetration testing empire, eliminated founder dependency, and successfully navigated the M&A process.
1. The Accidental Pivot: From Consulting to Education
Heath Adams started his career in ethical hacking (penetration testing)—a field where companies hire “good hackers” to break into their networks, websites, and physical buildings to uncover vulnerabilities before malicious actors do.
After starting his own consulting firm, lead generation was initially slow. To fill the pipeline, Heath began posting educational videos on YouTube and releasing practical, affordable cybersecurity courses on Udemy.
“The first week we put a course out on Udemy, we did $100,000 in sales,” Heath recalls. “We literally became an educational company overnight.”
The educational platform didn’t just generate organic revenue; it served as a zero-cost customer acquisition engine for their B2B penetration testing services.
2. Eliminating Founder Dependency
One of the biggest hurdles founders face when preparing for an exit is founder dependency—a company that relies entirely on its owner’s personal brand, skills, or sales ability is difficult to sell.
Because Heath was the face of the YouTube channel and courses, he recognized this risk early on. His strategy to remove himself from the core operations included:
- Platform Shift: Transitioning from third-party sites like Udemy to their own proprietary learning platform.
- Creator Revenue Share: Bringing in third-party instructors and incentivizing them with revenue-sharing models.
- Delegating Hat-Wearing: Hiring full-time content creators, sales executives, and marketers to take over daily execution.
By stepping back into an executive role focused purely on strategy and hiring, Heath ensured that the company could operate—and thrive—without him.
3. Why Exiting Was the Right Move: PE Competition & “The Walk Number”
When deciding to sell, Heath evaluated market conditions and competitive risks. Two major factors drove his decision to explore a transaction:
- Venture-Backed Competition: A major competitor secured $50 million in private equity funding, entering TCM Security’s price point with massive marketing power.
- Favorable M&A Multiples: Cybersecurity and EdTech acquisitions were fetching high multiples between 2023 and 2024.
Furthermore, Heath established a clear “walk number”—a target valuation that would secure financial independence and retirement. Once market valuations aligned with that threshold, he decided to take action.
4. The M&A Playbook: Creating Competition Among Buyers
Rather than turning down inbound inquiries, Heath followed a crucial piece of advice from a fellow founder: Never say no to a conversation. Taking initial calls provided free valuation benchmarks, insight into buyer due diligence requirements, and market intelligence.
Working alongside an M&A advisory firm, Heath’s team reached out to over 300 prospective acquirers, generating 10 to 15 Indications of Interest (IOIs) and four Letters of Intent (LOIs).
By creating competitive tension between two private equity firms and two strategic buyers, Heath forced a bidder who initially submitted a low-ball offer to return to the table with a market-rate valuation. Ultimately, TCM Security chose a strategic buyer that offered the best operational synergy for B2B growth and live training, rather than simply accepting the highest cash bid.
5. Post-Exit Reality: The Identity Crisis & Building Again
Exiting a company brings financial freedom, but it can also trigger a temporary loss of purpose—especially when non-compete clauses prevent founders from operating in their familiar industry for several years.
“I tried to retire. I sat on the couch for three months trying to figure out what I was going to do,” Heath admits. “I realized I’m a high-achievement person… there’s no way I’m able to just sit around and do nothing.”
Today, Heath is back in the startup ring with Breachpoint—a B2B SaaS company specializing in Active Directory vulnerability assessments. By taking the hard-earned lessons from his first exit, Heath and his co-founders are building a subscription revenue model from day one, proving that for true entrepreneurs, the fun is in the climb.
