Mandate profile
Vertical software platform investment search
Buyer profile: a mid-market private equity fund seeking platform investments in profitable vertical software companies ready to lead a buy-and-build.
Founders and management teams keep a meaningful stake and partner with the fund on add-on acquisitions.
Mandate profile
Why mid-market funds back vertical software platforms.
- Reference
- AQ-0495
- Sector
- SaaS & software
- Region
- North America, UK, Western Europe
- Last reviewed
Vertical software is a core strategy for mid-market private equity. A fund backs a leading platform in one industry, then grows it through product investment and bolt-on acquisitions. Mission-critical software with high retention and room to add payments and data is the ideal base.
This profile covers vertical software businesses with US$5M to US$40M of EBITDA in North America, the UK and Western Europe. Sectors include construction, property, logistics, healthcare, financial services, public sector and professional services.
Buyers here structure a majority recapitalisation, so management rolls equity and shares in the next stage of growth. Funds bring capital, M&A support and operating expertise.
Acquisition criteria
What this buyer is looking for.
The fund backs category leaders. Five factors shape the search.
Mission-critical software
Systems customers run their operations on.
Recurring revenue
Subscription and maintenance as the core, with gross retention above 90%.
Profitability
Meaningful EBITDA and strong cash conversion.
Fragmented market
Room for add-on acquisitions.
Strong management
A team ready to scale with institutional support.
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.
- EBITDA
- US$5M–US$40M
- Recurring revenue
- Majority recurring
- Retention
- Gross retention above 90%
- Growth
- Organic growth plus M&A runway
- Typical valuation basis
- Multiple of EBITDA
- Consideration
- Majority recap, management rollover
Deal structure and terms
Structure
Majority recapitalisation, with founders keeping a meaningful stake.
Management equity
Incentive plan for the wider leadership team.
Buy-and-build
Capital and support for bolt-on acquisitions.
Hold period
Typical five to seven year horizon.
What makes a relevant business
A platform worth building a group around.
What stands out is a business that can become the consolidator in its space.
All of these are welcome
- Any vertical
- Founder-owned or sponsor-backed
- Majority or significant minority
- Cloud or hybrid
- Any of the listed regions
Pricing power
Price increases accepted without churn.
Payments and data upside
Embedded payments or data products to add.
Add-on pipeline
Known targets for bolt-on deals.
Clean financials
Reliable monthly reporting.
Market drivers
What keeps demand strong in platform investments in vertical software.
Buy-and-build
Fragmented software verticals reward consolidation.
Embedded payments
Payments and fintech add-ons expand margins.
AI features
Platforms with proprietary data gain an edge.
How it works
You decide what is shared, and when.
Nothing goes to any 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 this profile and the buyers we work with, and tell you plainly whether there is a match, usually with a few questions.
- 3
Agree what can be disclosed
If there is potential fit, we agree with you what can be shared, and with whom, before anything moves.
- 4
Detailed discussions
Deeper conversations progress under confidentiality arrangements put in place for that discussion.
Submit an opportunity
Think your business could fit AQ-0495?
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.
AQ-0495 is a mandate profile, not a named buyer. We match your overview against the buyers we work with and tell you honestly whether there is a fit.
- Reviewed by Acquiry, never sent to any buyer automatically
- Anonymous overviews welcome
- Owners and advisers both welcome
FAQ
Before you send anything.
What does this mandate profile describe?
It sets out what a mid-market private equity fund looks for in an acquisition: the target profile, deal size, structure and regions shown above.
What is Acquiry’s role?
Acquiry works on the buy side. Profiles like this one set out the criteria acquirers in this segment use to assess targets.
Will the fund replace management?
No. The fund backs existing management and adds support where helpful.
What is a majority recapitalisation?
The fund buys a majority stake, founders sell part of their shares and keep the rest for future upside.
Are carve-outs considered?
Yes. Software divisions of larger groups fit.
Which verticals fit?
Any vertical with mission-critical software and a fragmented market.