The retail software market is ripe for a buy-and-build strategy focused on acquiring software companies with c. 2m sales.
Startups failed to capture a significant market share due to two inherent market characteristics: complex applications and few large customers.
This market situation is ideal for a buy-and-build strategy creating the first all-in-one suite in the market.
Four targets(LOIs issued) are currently in play and can be executed in the next 3-6 months.
Base Case scenario without significant operating improvements sees 5x cash-on-cash returns.
Upside Case assuming growth and margin improvement shows >10x returns
We are looking for 15m committed capital, deals are in the UK and EU.