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Earn The Right To Acquire
- Successful acquirers earn the right to buy by proving they can manage and improve businesses post-acquisition.
- Buying without a clear value-add usually destroys shareholder capital.
Why Vertical Software Fits Roll-Ups
- Vertical market software offers predictability, pricing power, and low churn, making it ideal for roll-ups.
- Most verticals contain many small companies ($2–$20M) where operational improvements add outsized value.
Underwrite Deals On Standalone IRR
- Underwrite every acquisition on a standalone IRR using conservative terminal assumptions.
- Avoid buying just because your stock looks cheap or market valuations are momentarily favorable.