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Addressable Market

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050

CDD for Tech Implementation & Support Businesses – Spotting the Good, the Bad and the Ugly

By Phil Craig

With software multiples remaining stuck around record highs [in '22 and '23], many technology investors are pushing increasing dollars into the tech advisor and technology implementation/support partner market (often marketed as "Digital Transformation service providers"). These businesses are subject to similar market growth rates (minimum >10% p.a., many >20% p.a.), but relative to the…
046

How to Diligence the Risks of SaaS Scope Creep

By Hailey Messenger, Kerri Evans

GRAPH has diligenced many SaaS companies, and as we all witness there is a particular trend towards software companies seeking to build a “complete platform” stemming from an original best-in-breed point solution. In the quest to grow revenues, increase stickiness, drive value, and attract investment, companies are expanding their feature-sets. This scope-creep poses a very real risk of…
044

Credit in the time of COVID

By Jeff Merkle

Any statement on the level of disruption that 2020 has served up risks being an understatement. In addition to reconsidering personal lives and routines, many investors have been forced to rethink world views on risk and downside – a subject we’ve been spending immense time on over these past 6 months. While GRAPH prides itself on thinking creatively about value gen opportunities for new…
041

Winning in the Swing States – Commercial Due Diligence Lessons from Political Strategy

By James Tetherton

2024 will see national elections in both the US and the UK.* In both cases, the election will be won and lost in a handful of key marginal seats (or “swing states,” for US readers) - constituencies where the winning margin at the last election was less than 5% of the vote.
033

CDD Plan of Attack: Risk of Overstatement of Digital Disruption Signals (and Opportunity)

By Ania Camilla Dulnik

The risk of ‘digital disruption’ is pertinent to almost every industry today. Naturally, acquirers look for signals that a target company will be able to brace the oncoming winds of change and enhance its products and services to meet the demands of an increasingly connected and digital world.
010

Available Market Size

By James Tetherton

Why Large Markets Can Sometimes Feel Very Small (and why Addressable Market is insufficient) We’ve written before about the need to clearly define markets to inform accurate sizing. But even with the clearest possible definition, one other piece of analysis is critical, and is often overlooked – quantifying what we like to call the Available Market Size.
005

Sizing Up Bad Market Definitions

By Mark Stein

Reflecting on 20 years of investing, one investment professional recently remarked to us, “When I think about what we’ve gotten wrong in the past, the worst times have been when we believed we had a bigger market size than we really did. There’s just nothing you can do...the company just runs out of room for growth.”

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