Shoot The Moon

Vertical Victory: Why M&A Winners Are Betting on Industry Focus

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EPISODE 229. We’re diving into a topic we’ve preached for decades but is showing up big-time in recent calls: vertical market focus as a key value driver in M&A. It’s not just PE firms chasing verticalized platforms anymore — strategics are dialing in too. From healthcare IT and legal tech to construction-focused MSPs, we’re seeing how domain depth beats general breadth when it comes to valuation, buyer interest, and integration success.

Why This Topic?

  • Nearly every buyer call this week hit on vertical strategy
  • PE firms are framing investment theses around industry-specific plays
  • Strategics (like Frontline and Uptime) are scaling via vertical bolt-ons
  • Operators who niche down are getting stronger multiples and clearer GTM motion

    • Emerging Themes from Revenue Rocket this Week

    • Buyers want relationships, workflows, and niche dominance — not just EBITDA
    • Vertical specialization solves distribution problems
    • SaaS-like economics in vertical plays are commanding premium multiples
    • Cultural alignment is easier when firms live in the same industry world

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      Related Episodes:

      Episode 210: What Should My Company look like to Command a Premium Offer. Listen now >>

      Episode 173: Why is selling a Business so Hard? Listen now >>

      Episode 145: Why Sellers with Vertical Market Approaches Earn Premium Valuations. Listen now >>

       

       

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