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Being Acquired
- mooreds 4y agoInteresting look at what drives an acquisition by a vertically focused conglomerate. Interesting, doesn't look like a PE play.
- mbesto 4y agoThis is 100% a PE play. PE is basically just "more than 50% ownership" from an investment perspective. CSI is a notoriously "roll-up" shop and there are tons more in the US that basically do the same.
- mooreds 4y agoIs Berkshire Hathaway PE? Seems like it would be by that definition, but I've never heard them called that. I always thought PE was leveraged buyouts/KKR/Masters of the Universe type of folks.
- mbesto 4y agoThere's some nuance there for sure. Berkshire is a heavily diversified conglomerate, which includes acquiring companies plus minority investments in publicly traded equities. CSI is simply an acquisition roll-up shop. > I always thought PE was leveraged buyouts/KKR/Masters of the Universe type of folks. I'd have to double check for sure, but I'm 90% sure that CSI levered their deals. So by that definition (MBO acquisitions + leverage) I'd put them in the PE category. Could argue maybe family office (which utilizes many PE techniques).
- propter_hoc 4y agoThese guys reach out to basically every SaaS company in Canada. They have a reputation of driving a lot of shareholder value (massive stock price increase over time) but also of getting there by avoiding paying top of market rates. Not sure of the validity of that, but such is the scuttlebutt on the Canadian tech street.
- ghiculescu 4y agoBy definition not everyone can pay top of market. So I am not sure it’s such a bad thing.
- setgree 4y ago> An outstanding manager > Consistent profitability > Above average growth When I saw these, totally sans punctuation, I read them as some kind of e.e. cummings poem assembled from randomly sampled capitalist mumbo jumbo
- gumby 4y agoAnd the page suggests that in that case they’d buy from someone who wanted to retire…wouldn’t the retiree be the outstanding manager?
- 1123581321 4y agoI read it as they want to see that the owner has put good management in place before selling.
- jeffreyrogers 4y agoSounds like the Warren Buffet approach applied to tech companies.
- pigtailgirl 4y agothey own companies that own companies? They own harris - clicking through harris - harris owns many many many many software companies -
- TylerE 4y agoYes. The company I work for bought by CSI not long after I was hired. There are at least 4 companies (that I know of - probably more! - between us and CSI.
- pigtailgirl 4y agocrazy i've never heard of this company - yet they're doing over 3 billion in revenue - seems like a great business this Mark Leonard dude has built -
- gumby 4y agoMark Lenard has quite diverse experience. Perhaps the business success reflects the combination of his Vulcan rationality and his Romulan go-for-the-jugular instincts. https://en.wikipedia.org/wiki/Mark_Lenard https://en.wikipedia.org/wiki/Mark_Lenard
- boeingUH60 4y agoHe has a pretty unique beard https://colinkeeley.com/blog/mark-leonard-constellation-software-operating-manual https://colinkeeley.com/blog/mark-leonard-constellation-soft... Also found this…"he worked as a banker, valuator, mason, gravedigger, dog handler, bouncer, sapper, and wind energy researcher. https://www.theglobeandmail.com/report-on-business/rob-magazine/the-most-successful-canadian-dealmaker-youve-never-heard-of-and-will-never-see/article18134950/ https://www.theglobeandmail.com/report-on-business/rob-magaz...
- kirso 4y agoThis is a great example of the company that doesn't do TechCrunch PR and is a hidden gem for shareholder value. Have been investing in their shares for a few years now and its a great example of "not the loudest ones win". Boring businesses sometimes are a better deal...
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