Shoot the Moon with Revenue Rocket

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

Episode Summary

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.

Episode Notes

💡 Why This Topic?

• Nearly every buyer call this week hit on vertical strategy
• PE firms are framing investment theses around industry-specific plays
• Strategics 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

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 >>