Business Moats Ranked By ROIC
Business Moats Ranked By ROIC
Atlasview Insights -- bite-sized weekly insights that are relevant to all business owners, dealmakers, and investors.
Happy Wednesday folks!
We are thrilled to have you join us for another edition packed with valuable content for small business owners, deal makers, and investors alike.
For those who may be unfamiliar with us, Atlasview Equity is a private equity firm specializing in software and tech-enabled businesses. To learn more about our experienced team and investment criteria, visit us here.
In this newsletter, we cover:
Business moats ranked by performance
Acquisition and sales insights from our team
Our favorite reads from around the ecosystem
Make sure to subscribe and if you enjoy the content, we'd appreciate you sharing it with your network.
Partner with Atlasview Equity
We look for the following characteristics in our partner companies:
Industry: Software and tech-enabled businesses
Business Profile: Sticky B2B customer base
Size: Minimum $1m EBITDA or $5m ARR
Geography: The US & Canada
Whether you’re a business owner interested in working with us, or an intermediary with a deal to share, always feel free to reach out and get in touch with us!
Atlasview Perspectives: Moats By Performance
Our team recently came across this chart which ranks 5 types of moats by their performance (based on a study of 1500+ businesses).
Businesses with network effects or efficient scale moats typically have a winner-take-all dynamic. The top dogs in the industry capture the lion’s share of the value.
It is very hard to achieve either of these moats and virtually no business in the small business or lower middle market space has either.
Most of the businesses we come across at Atlasview Equity have 2 types of moats: intangible assets and switching costs. The intangible assets being software code and customer contracts. Switching cost is the risk, difficulty, and high costs associated with customers switching software providers.
These 2 moats enable even small players within a specific industry to have defensibility. These “mini-monopolies” can deliver fantastic returns on invested capital.
Which of these moats does your business(es) currently have or are building towards? Reply to this thread and let us know!
Finally, if you run a software or tech-enabled business that has one of the moats mentioned above, feel free to reach out.
Quote of The Week
Atlasview’s Investment Criteria
We look for the following characteristics in our partner companies:
Industry: Software and tech-enabled businesses
Business Profile: Sticky B2B customer base
Size: Minimum $1m EBITDA or $5m ARR
Geography: The US & Canada preferred
Whether you’re a business owner interested in working with us, or an intermediary with a deal to share, always feel free to reach out and get in touch with us!
Our Favorite Reads
Atlasview Insights <> Deal Bridge Media
This newsletter was powered by the team at Deal Bridge Media. Deal Bridge builds newsletters for M&A firms to help them generate more inbound deal flow.
Does your investment firm want to start a newsletter? Get in touch with Deal Bridge today!
About Us
Atlasview Equity is a private equity firm specializing in software and tech-enabled businesses. We combine patient capital with proven operational strategies to deliver predictable results for our stakeholders.