What we look for

A durable niche, a profitable business, and a founder who's thinking about what's next.

We're specific about the companies we acquire — not because we're picky, but because we know where we add value and where we don't. If your company checks most of the boxes below, we'd like to hear from you.

The checklist

What a Waverock fit usually looks like.

Exceptions exist — we've made them before and will again. But this is the shape of most of the companies we acquire.

Revenue
$2M – $15M ARR
Big enough to have a real product and real customers. Small enough that the founder still remembers every deal.
Recurring mix
80%+ recurring revenue
SaaS, subscription, or long-term support contracts. Some services is fine; mostly-services isn't.
Profitability
Profitable or breakeven
We're not a cash-burn fund. EBITDA margins of 15%+ are ideal; breakeven is workable if the path to profit is clear.
Gross retention
90%+ logo retention
Sticky software serving a specific job. High retention is the single strongest signal of a durable business.
Market
Niche vertical, North America
A defined industry or function — specialty healthcare, field services, public sector, logistics, etc. US or Canada headquartered.
Customer concentration
No customer > 15%
A few anchor customers is fine and often normal. A business where one customer's departure would break the model is harder.
Product
Owned IP, modern-enough stack
You built and own the product. Doesn't need to be on the latest framework; does need to be maintainable.
Team
Small, capable, tenured
10–80 employees is the sweet spot. Long-tenured engineers and support people are a strong positive signal.
Deal structure
Majority buyout · 20% rollover
We buy control. Founders roll 15–25% of their equity into the new structure for a real second bite.
Timeline
90 days LOI to close
We run a tight diligence process and don't re-trade at the finish line. The deal you sign is the deal that closes.
Three kinds of founders we tend to hear from

Which one are you?

Most of the CEOs we meet fit one of these three profiles. None of them is better or worse — they just need different things from an acquirer. We've structured deals for all three.

Scaling Alongside Us

You still love running the company. You want a partner with capital, pattern-matching, and back-office support so you can focus on product and customers. You'll stay in the CEO seat and take a second bite at a much larger valuation in five to ten years.

Typical business age8–15 years
Typical revenue$5M–$12M ARR
CEO age40s–early 50s
Growth rate15–30% YoY
EBITDA margin15–25%
Wants from usLeverage, not a boss

Planning Your Next Chapter

You've been running this company for 15–25 years. You're proud of what you built, but the next decade of CEO grind is someone else's problem. You want a clean sale, a dignified exit path, and a buyer who won't tear apart the team and customers who stuck by you.

Typical business age15–30 years
Typical revenue$3M–$10M ARR
CEO age55–70
Growth rateFlat–10% YoY
EBITDA margin25–40%
Wants from usA dignified exit

Refreshing the Organization

The product works. The customers are loyal. But the tech stack is aging, the GTM motion hasn't been rebuilt in a decade, and the company needs investment you don't have the risk appetite to fund yourself. You'd rather take some chips off the table and let someone else modernize.

Typical business age10–20 years
Typical revenue$2M–$8M ARR
CEO age45–60
Growth rate0–8% YoY
EBITDA margin20–35%
Wants from usCapital and a roadmap
Why we only buy vertical software

Niche beats broad, every time.

Horizontal software competes with giants. Vertical software competes with the next five companies at the industry conference. The economics of the two are almost nothing alike.

90%+

Gross retention is the norm

Vertical software is sticky because it's embedded in how the customer runs their business. Replacing it is painful and rarely worth it.

3–5x

Pricing power over horizontal

A specialty-workflow SaaS for a $2B industry can price against the value it delivers, not against 50 undifferentiated competitors.

Decades

Products last

A well-run vertical software product can serve the same industry for 20+ years. New entrants are rare, and incumbents compound.

We focus on verticals where the customer's business runs on the software — EHRs for specialty care, scheduling for field service, permitting for local government, compliance for regulated industries, logistics for mid-market distributors. When the software is load-bearing, everything about owning the business gets better.

Where we look

We pay attention to the founders most coastal acquirers fly past.

Some of the best vertical software companies in North America were built by founders who put customers first and stayed loyal to their teams — quietly, over a decade or more, in cities the typical strategic acquirer doesn't think to visit. We do.

Denver, CO
Dublin, OH
Atlanta, GA
Boise, ID
Salt Lake City, UT
Sioux Falls, SD
Tulsa, OK
Phoenix, AZ
Omaha, NE
Raleigh–Durham, NC
Madison, WI
Winnipeg, MB
Calgary, AB
Halifax, NS
Your city

 A Waverock company already operates here.

We look everywhere in the US and Canada, but the companies that fit best are usually built by founders who measure success in customers served and people retained — not in funding rounds raised. If yours has been compounding quietly off the standard venture flight path, that's a feature, not a bug.

What we pass on

Early-stage and pre-product companies.

If you're pre-revenue, pre-product, or still figuring out what the business is, we're not the right home. Venture is. Come find us in three years.

Mostly-services businesses.

Great consulting businesses exist; we're not the buyer for them. We need product to be the center of gravity and recurring revenue to be the majority of the mix.

Pure-consumer software.

B2C has a different set of dynamics — ad funnels, churn, brand — than B2B vertical software. We don't pretend to know it well enough to be helpful.

Highly competitive horizontal categories.

CRM, project management, marketing automation, dev tools — if your product sits in a category with thousands of direct competitors and no industry-specific moat, we're probably not a fit.

Companies with major structural problems.

Litigation, broken tech stacks, customer concentration north of 40%, unresolved founder disputes — we can help with a lot, but not with everything. If the company needs a turnaround before it needs a home, turnaround specialists are the better fit.

Think your company might fit? The first call is the easiest part.

A 30-minute confidential conversation with Mike. No NDAs at this stage, no diligence, no commitment. If it's a fit on both sides, we move from there.

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