Confidential acquisition search
Mission-critical vertical SaaS, owned for the long term
A permanent-capital software group is acquiring vertical software businesses with $1M to $20M in annual recurring revenue, where the product sits at the heart of how customers run their operations.
The group is industry and geography agnostic and has no fund clock. It looks for durable, sticky products built on genuine domain expertise. Share a short, non-confidential overview with Acquiry to check fit.
Mandate profile
A long-term owner for durable vertical software
- Reference
- AQ-0505
- Sector
- SaaS & software
- Region
- Global, geography agnostic
- Last reviewed
Vertical software businesses with $1M to $20M in ARR sit in an awkward spot in the market. They are often too small for large private equity platforms, too specialised for horizontal strategic buyers and too valuable to their customers to be handed to just anyone.
This buyer was built for exactly that segment. It is a permanent-capital holding company that acquires and operates mission-critical vertical software, with no fund life and no exit date. It buys businesses to keep them, improve them and let them compound.
Its criteria are deliberately clear: software embedded in customer workflows, gross revenue retention of 90% or more, at least 70% recurring revenue and profitability or a clear path to it. Industry and geography are open. That transparency lets owners judge fit quickly and saves everyone time.
For founders, the appeal is a buyer that values what they have already built (loyal customers, domain depth, a product people depend on) rather than one that needs a new growth story to justify the price, or a resale a few years later.
Acquisition criteria
What this buyer is looking for.
Five criteria define this search. They are published openly so owners can self-assess in a few minutes before getting in touch.
$1M to $20M in ARR
Annual recurring revenue in this range. Smaller businesses with exceptional retention and a clear niche are still worth a conversation.
Embedded in customer workflows
Software customers depend on daily to operate: scheduling, billing, compliance, dispatch, records or production. It is the system they would struggle to run without.
Gross revenue retention of 90%+
Customers stay and keep paying. Annual logo churn below 10% is the benchmark this buyer looks for.
Mostly recurring revenue
At least 70% of revenue from subscriptions, maintenance or other contracted recurring fees.
Profitable or on a clear path
Profitability is preferred. A business that is close to profitable, with a credible plan to get there, is also considered.
Close, but not an exact match? Tell us anyway.
Share an overview
Target financial profile
The numbers this buyer type works to.
Typical ranges for this profile. Businesses outside a range are still assessed on their overall strength.
- ARR
- $1M to $20M
- Recurring revenue
- At least 70% of total
- Gross revenue retention
- 90% or higher
- Annual churn
- Below 10%
- Profitability
- Profitable, or a clear path to it
- Geography
- Any country
Deal structure and terms
Permanent ownership
Backed by permanent capital, so there is no fund clock and no planned resale. The business is acquired to be owned for the long term.
Continuity for customers and team
The aim is to keep what works: the product customers rely on, the people who know the industry and the relationships that drive retention.
Structure agreed per deal
Full sale or majority transactions, with consideration, timing and any founder transition agreed case by case. Your own lawyers and accountants advise you on the terms.
Clear, published criteria
Because the buying criteria are stated upfront, owners can self-assess fit early and conversations focus on the business from the start.
What makes a relevant business
Who this buyer is a strong fit for
What sets a business apart for this buyer is evidence that its customers could not easily replace it, and that its team knows the industry inside out.
All of these are welcome
- Any industry vertical
- Any country
- Founder-led, bootstrapped or investor-backed
- Full sale or majority recapitalisation
- Cloud SaaS or hosted software
Real domain expertise
A product shaped by years of working inside one industry, with features that reflect how that market really operates.
Sticky, durable product
Deep integrations, data that lives in the system and staff trained on it. These are the reasons customers renew year after year.
Clean retention data
Gross and net revenue retention you can show by cohort. Strong numbers here speak louder than any growth projection.
Room to keep improving
Pricing, product, adjacent modules or new geographies the business has not yet had the capital or bandwidth to pursue.
Market drivers
What keeps demand strong in mission-critical vertical saas, $1m-$20m arr.
Retention is the new growth
Buyers increasingly pay for durable, predictable revenue over top-line growth. High-retention vertical SaaS is exactly that kind of asset.
An underserved deal size
Businesses in the $1M to $20M ARR range have fewer natural buyers, so a dedicated, long-term acquirer for that segment is a valuable option.
Founder liquidity without a flip
Owners can realise value without handing the company to a buyer that will resell it within a few years.
Scale benefits for small teams
Security, compliance, payments and hiring are easier with a larger group's playbooks behind a small product team.
How it works
You decide what is shared, and when.
Nothing goes to the buyer automatically. Every step after the first happens only if there is potential fit and you are comfortable going further.
- 1
Share an overview
Send a short, non-confidential summary using the form. Anonymous is fine at this stage.
- 2
Acquiry reviews fit
We compare it with the published criteria and come back to you, usually with a few questions about ARR and retention.
- 3
Agree what can be disclosed
If there is potential fit, we agree with you what can be shared, and with whom. The buyer's identity is disclosed to you at this point, under confidentiality.
- 4
Detailed discussions
Deeper conversations with the buyer progress under a confidentiality agreement, at a pace that suits you.
Submit an opportunity
Think your business could fit AQ-0505?
Tell us a little about it. A short, non-confidential overview is enough, and you can leave the company name out. We review every submission ourselves and reply directly.
- Reviewed by Acquiry, never sent to the buyer automatically
- Anonymous overviews welcome
- Owners and advisers both welcome
FAQ
Before you send anything.
What is permanent capital?
Money that is not tied to a fund with a fixed life. The buyer can own a business indefinitely, so there is no pressure to resell it in three to seven years the way a typical private equity fund would.
My ARR is just under $1M. Should I still get in touch?
Yes, if retention is strong and the product is clearly mission-critical in its niche. The range is a guide, not a hard cut-off.
We are not profitable yet. Is that a problem?
Not necessarily. Profitability is preferred, but a business with a clear, credible path to profitability is also considered.
How do you measure gross revenue retention?
Revenue kept from existing customers over a year, before any upsell, divided by what those customers paid at the start. If you track logo churn or net retention instead, share that and we will work from it.
Does the buyer only invest in certain industries?
No. It is industry and geography agnostic. What matters is that the software is deeply embedded in how its customers work.
Can I submit anonymously?
Yes. Company name and website are optional. A description of the software, its industry, ARR, recurring share and retention is enough for us to judge potential fit.
I am an adviser. Can I introduce a client?
Yes. Choose adviser as your role and describe the business without naming it if you prefer. We are happy to work alongside existing advisers.
When do I learn who the buyer is?
Once there is potential fit and you have agreed to continue. We disclose the buyer's identity to you under confidentiality before any introduction is made.