Everything on Deal Selection

Sector-agnostic investing allows acquirers to avoid the inflated multiples seen in popular roll-up sectors like healthcare and trades. By focusing on fundamental criteria such as cash-flow conversion and recurring revenue, acquirers can identify undervalued companies in less crowded niches.

Impact: This approach reduces competition and entry costs, enabling acquirers to build a diversified portfolio with higher margins and more stable cash flows.

— from Serial Acquirers vs. Search Funds in German Mittelstand · That's Smart Money· Feb 03, 2026