Over the past few months, I have been developing an acquisition thesis around market-specific vertical SaaS. Software that markets to a specific country or region due to language restrictions, or capital restrictions. These platforms have SaaS margins but could sell at a discounted price due to their limited geography.
To give an example, a property management SaaS platform focused only in the German Market. The software is well-positioned in the DACH region with SEO and a strong customer base. Post-acquisition the development could be centralized into a larger firm while maintaining the local sales team.
The firm could continue to acquire similar platforms in different markets and consolidate them under one brand. The software could eventually be consolidated under one product, with small market-specific adaptation as needed.
The acquiring company could also decide to acquire one or two and then grow markets internally. The firm could hire local sales teams, and execute localized inbound marketing tactics. I assume the internal growth would be less capital intensive, but more likely to fail opening new markets.
What verticals would you focus on? What markets do you feel are attractive? Anyone interesting in teaming up on this?
I would but flurly has me occupied. Good luck Andrew!