Bettors vs Builders
Atlasview Insights -- bite-sized weekly insights that are relevant to all business owners, dealmakers, and investors.
Happy Wednesday folks!
Thanks for joining us for another edition of Atlasview Insights. We’re back with another week of sharing bite-sized insights that are relevant to small business owners, dealmakers, and investors.
If you are not familiar with Atlasview Equity, we are a private equity firm specializing in software and tech-enabled businesses. You can learn more about our team and investment criteria: here.
In this newsletter, we cover:
Breaking Down Bettors vs Builders
Our Favorite Reads
Insights From Our Team
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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!
Bettors vs Builders
We generally agree with this framework. Both types can make money. Both types also have their limitations:
For bettors - markets are generally quite efficient, so finding mispriced assets is a rare feat. Not to mention, the market might be pricing the assets correctly and you might be missing a major risk.
For builders - over time the synergies get priced in. Similar to the previous point, markets are generally efficient, and prices will correct to include your set of systems that (initially) generate an outsized return. Learned secrets become widely dispersed, and copycats emerge, pushing asset prices up and IRRs down. We've studied this with Thomson Newspapers and many other rollups.
So of the 2 types are we?
For our investments, though we have systems/resources/skillsets we deploy to influence returns (reach out to learn more about Atlasview's playbook) AND the ability to change CEOs/management... we still lean towards bettor.
This means we still seeking assets we can purchase at an attractive multiple (aka mispriced). That attractive, mispriced, entry point is critical, especially in private markets investing because mistakes are unforgiving.
It's hard to sell out of a position, and the transaction costs are immense. You need to make money on the buy, that margin of safety needs to exist in case your projected synergies post-acquisition don't pan out as expected.
Thomas is a sharp investor and shares a lot of useful content on Twitter, give him a follow!
Our Favorite Reads
Insights from our Team
Operations
Investing
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!
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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.