Grant Thornton Stax Insights

Featured by PYMNTS: FinTechs Cut Staff as AI and Margins Redefine Growth

Thu, 23 Apr 2026 18:35:22 GMT

Palash Misra

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This article was originally featured on PYMNTS.com .

Across FinTech, the workforce is getting smaller. Leadership teams are calling it a recalibration.

The layoffs now underway in the sector indicate a deliberate structural shift as companies unwind hiring decisions made during the pandemic and realign their operations with the current economic environment.

The pattern is consistent. Bolt cut at least a third of its workforce, with CEO Ryan Breslow telling employees the company would operate as “a much leaner organization and leveraging AI at our core,” adding that “developing products and operating in 2026 is very different than it was in prior years.”

Block has reduced staffing by 40% while deepening its use of artificial intelligence across internal workflows, from software development to customer-facing functions.

Nayax, in its second round of layoffs in less than a year, trimmed 3% of its workforce, affecting 32 employees, even as the company reported strong performance and expects revenue to surpass $500 million.

Pipe reduced its headcount by roughly half, shifting leadership and narrowing its strategic priorities in the process.

Palash Misra

Partner

Pandemic Hiring Left an Overhang

The current reductions follow a period of rapid expansion.

FinTech hiring accelerated sharply between 2020 and 2022 as digital channels became central to commerce, lending and payments. Venture capital funding reached record levels.

That capital translated into headcount. Firms expanded engineering, product and go-to-market teams to capture demand tied to eCommerce growth, stimulus-driven spending and the migration to digital banking services. The Wall Street Journal reported earlier this year that layoffs are linked to over-hiring during the pandemic.

FinTech firms are now working through the same adjustment.

Recommended: How AI is Reshaping Vertical SaaS

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How AI is Reshaping Vertical SaaS

AI and Profitability Redefine Performance Metrics

The current environment is reshaping how success is measured.

Artificial intelligence is already altering staffing requirements. Tools that generate code, automate documentation, analyze risk signals and manage customer interactions are reducing the need for large teams in certain functions. Bolt’s restructuring explicitly ties layoffs to that shift.

At the same time, management teams are placing greater weight on profitability. Pipe’s restructuring emphasizes margin and operational focus, while Nayax’s cuts show that even profitable firms are tightening expenses.

Investors are reinforcing these priorities. Palash Misra , partner at Grant Thornton Stax , whose clients include growth focused and public market investors, told PYMNTS, “The biggest shift is that the market just isn’t rewarding pure growth the way it used to. Investors care a lot more now about the quality of that growth, how profitable it is, how durable the margins are, and whether the cost structure makes sense based on the size and scale of the organization.”

He added that “investors are more focused on performance metrics such as contribution margin, CAC payback, and how profitable customer cohorts are over time… this is something that we are seeing across FinTechs as well as across SaaS. There’s been a clear shift away from ‘growth at all costs’ toward profitability and efficiency.”

The result is a narrower, more focused workforce. The layoffs now moving through FinTech mark the transition from a period defined, arguably, purely by expansion.

About Grant Thornton Stax

Grant Thornton Stax is a global management consulting firm serving corporate and private equity clients across a broad range of industries including software/technology, industrials, business and information services, healthcare and HCIT, consumer, and tradeshows and events. To learn more, visit our Insights page or click here to contact us directly .

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Tyler Michaels Recognized for Software & Technology Expertise at 2026 Rising Star Awards

Thu, 23 Apr 2026 18:08:28 GMT

Tyler Michaels

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Grant Thornton Stax congratulates Tyler Michaels on being recognized at the 2026 Consulting Magazine Rising Star Awards in the category of Industry Specialization – Software & Technology.

As a Director in Grant Thornton Stax’s Software and Technology practice, Tyler has led more than 70 commercial diligence engagements, nearly 60 of which have focused on software and technology assets across vertical software, IT services, cybersecurity, DevOps, and infrastructure. Through this depth of experience, Tyler has developed a strong industry specialization—building a robust portfolio of technology-focused thought leadership and establishing meaningful brand equity for both himself and Grant Thornton Stax within the sector.

1. What would you say has been the biggest factor in your success so far?

Tyler: " The biggest factor has been consistency in effort and follow-through. In diligence, timelines are tight and the bar is high, so I have learned that strong outcomes come from doing the hard work early, staying close to the details, and taking ownership through the finish. That approach has earned trust with clients and teams and has opened doors throughout my career."

Tyler Michaels

Director

2. What do you enjoy most about your career in the consulting industry?

Tyler: "I enjoy working with smart, driven people to solve real investment decisions under time pressure. There is something energizing about helping investors and management teams navigate ambiguity, pressure-test a thesis, and leave a process with clearer conviction. I also value the chance to learn from leaders who advise top CEOs and PE firms, and to help develop the next generation of Grant Thornton Stax consultants."

3. What is your proudest achievement to date?

Tyler: "I am proudest of the path I have built over time. I was the first in my family to graduate from college, and consulting has given me opportunities to grow, to contribute to meaningful client outcomes, and to build a life I am grateful for. Each engagement is a chance to stretch, and I take pride in the cumulative progress that has come from that."

4. What's the best advice you've ever been given?

Tyler: "'Be comfortable with the uncomfortable' has always stuck with me. It is a reminder that growth comes from leaning into new challenges, not avoiding them. Professionally, I also live by “no surprises.” If something is off track, raise it early. Our clients and teams can solve hard problems, but only if we are transparent and proactive."

Interested in becoming a member of the Grant Thornton Stax team?

5. What would this recognition mean to you?

Tyler: " This recognition would be a meaningful validation of the work and the learning curve that comes with it, including the long nights and the moments that pushed me outside my comfort zone. More importantly, it would reflect the support of the people I have learned from at Grant Thornton Stax and the clients who have trusted me with important decisions. On a personal level, it would make my family proud and remind my younger brothers that persistence pays off."

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Turning Insight into Impact: Yiwei Jiang Recognized for Thought Leadership in Private Equity

Tue, 21 Apr 2026 16:13:18 GMT

Yiwei Jiang

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Grant Thornton Stax is proud to congratulate Yiwei Jiang on being recognized at the 2026 Consulting Magazine Rising Star Awards in the category of Thought Leadership and Intellectual Capital.

Yiwei’s work exemplifies the role of thought leadership in today’s investment landscape—going beyond insight to shape how decisions are made. Her research brings structure to complex, fragmented markets, translating data into clear, actionable frameworks that help investors evaluate opportunities with greater confidence. In sectors like managed services, cybersecurity, and DevOps, her perspective has helped define market narratives, elevate the quality of diligence, and provide a more grounded basis for investment decisions.

1. What would you say has been the biggest factor in your success so far?

Yiwei Jiang

Director

Yiwei: " The biggest factor behind my success has been a combination of hard work, intellectual curiosity, and the incredible support system around me. I’ve always been driven to dig deeper: not just to answer the question we’re asked, but to understand why it exists in the first place. Working in CDD (Commercial Due Diligence), I push myself to get to the bottom of every industry I touch.

I’ve also been fortunate to grow within a firm that truly values collaboration, mentorship, and trust. Over the past five years at Grant Thornton Stax, I’ve gone from someone who once struggled to write professional English to someone who now confidently leads engagements. This transformation would not have been possible without the patience and guidance of my seniors, who invested deeply in my development. I still remember, during the height of Covid, my mentor sharing his screen late into the night, editing my slides line by line and explaining the rationale behind each change. Those moments, along with the trust they placed in me to step up while providing a safety net, have shaped both my confidence and my approach to leading others.

Equally important are my colleagues and junior team members: their dedication, intelligence, and teamwork have carried us through some of the toughest projects.

Finally, my partner, who moved across the globe to support me and my career, has been my greatest source of strength. His love and belief in me have given me the confidence to take on every challenge."

Those moments, along with the trust they placed in me to step up while providing a safety net, have shaped both my confidence and my approach to leading others.

Equally important are my colleagues and junior team members: their dedication, intelligence, and teamwork have carried us through some of the toughest projects.

2. What do you enjoy most about your career in the consulting industry?

Yiwei: "What I enjoy most about consulting is the combination of people, challenge, and growth. I get to work with smart yet humble colleagues and clients who constantly push my thinking while fostering a deeply collaborative environment.

Each project brings a new learning curve, and the bar for quality keeps rising. I often look back at work from 18 months ago and think, “I could have framed that better” or “I could have delivered that more clearly.” That constant push to improve—to think sharper, communicate clearer, and deliver greater impact—is what keeps me energized and fulfilled.

Beyond the work product itself, I’m continually learning on the client management and team leadership fronts. Knowing there’s always room to grow, both as a consultant and as a teammate, is what truly makes me enjoy this career."

3. What is your proudest achievement to date?

Yiwei: "My proudest achievement is building a successful career in consulting despite coming from a completely different cultural and linguistic background. I didn’t begin learning English until middle school, and all of my education prior to my master’s degree, as well as my early professional training, was entirely in Mandarin.

Navigating an English-speaking, high-performance consulting environment required me to relearn how to communicate, collaborate, and influence—skills that many take for granted. The process was humbling but transformative, and it taught me resilience, adaptability, and the importance of lifelong learning."

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3. What is your proudest achievement to date?

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4. What's the best advice you've ever been given?

Yiwei: "The best advice I’ve ever been given is that success in the long run isn’t about being the smartest person in the room—it’s about helping others shine. Early in my career, I thought intelligence and technical mastery were everything. Over time, I’ve learned that true leadership is about motivating teams, creating clarity, and letting others be the hero.

I’ve also learned that resilience evolves with experience. As a junior, it meant working hard, grinding through long hours, and never giving up. As I’ve become more senior, resilience now means staying calm under pressure, shielding the team from stress, and learning to let go of tough moments gracefully."

5. What would this recognition mean to you?

Yiwei: "I am truly humbled to receive this recognition. It means more than an individual achievement: it reflects the support, mentorship, and trust I’ve been fortunate to receive throughout my journey. It also serves as a powerful reminder of how far I’ve come and how much I’ve grown through the opportunities and guidance of those around me.

Most importantly, this recognition inspires me to pay it forward: to pass on the mentorship and trust that others have given me, and to continue striving for excellence while helping those around me grow and succeed."

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Not All Moats Are Created Equal: Applying an AI Risk Framework to GovTech

Mon, 20 Apr 2026 17:26:58 GMT

Chen Liu

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Executive Summary:

Grant Thornton Stax Partner Chen Liu demonstrates our AI risk framework within a specific vertical software segment (GovTech ERPs). These platforms benefit from strong technical and commercial moats, including deep domain expertise, complex integrations, high switching costs, and risk-averse customers, all of which limit competitive disruption from AI-native or horizontal entrants. While AI may pressure certain elements, such as seat-based pricing models or adjacent features like analytics and workflow tools, the core system-of-record functionality remains durable and unlikely to be displaced. Overall, evaluating AI risk requires distinguishing between core resilience and peripheral exposure, with outcomes varying significantly based on a product’s role, complexity, and market dynamics.

A growing body of commentary on AI’s impact on software businesses spans a wide spectrum, from warnings of the impending “SaaS-pocalypse” to views that “the whole thing is way overblown.” To make the rhetoric more tangible, Grant Thornton Stax sought to apply and showcase a basic AI risk framework within a specific vertical software segment.

For our example, let’s think about a GovTech ERP (financial software) that sells into small and mid-sized state and local governments (SLGs). Intuitively, a GovTech ERP feels relatively insulated from AI risk (i.e., sticky, mission-critical, high switching costs) but let’s validate this thinking in a more structured manner.

This exercise uses a two-part framework: Competitive replication risk (e.g., from AI-native entrants, horizontal platforms achieving feature parity) and market shrink risk (e.g., AI reducing the underlying need for the product).

Chen Liu

Partner

Competitive Replication Risk

Insourcing: Not a real risk for GovTech ERPs

The insourcing risk for small to mid-sized state and local governments is close to zero. These organizations typically have limited IT teams and appetite for the operational risk of developing their own ERP solutions that manage critical payroll and budgeting workflows.

AI-native new entrants: Real question, but lower risk than it might appear

AI-assisted coding can reduce the cost and time to build ERP-like functionality, and some incumbent GovTech ERPs have a reputation for somewhat dated interfaces and clunky UX. The case for a modern new entrant can be made.

That said, several technical barriers exist that new entrants would find challenging to overcome.

Domain expertise encoded in product: GovTech ERPs must comply with a wide range of government-specific requirements—GASB accounting standards, state specific reporting mandates, federal grant compliance frameworks, etc. Coding these requirements correctly requires deep domain knowledge that accumulates over years of working across different types of government entities.
Integration depth: GovTech ERPs are also typically integrated with many other software solutions, including state reporting portals, HR platforms, municipal software, etc., and those integrations are built using APIs and data structures that require meaningful time to develop.
Edge case hardening: Lastly, new entrants would have a hard time managing edge cases; LLMs are probabilistic; business logic is deterministic; the long tail of jurisdiction-specific requirements cannot be easily replicated.

The commercial moat for GovTech ERPs compounds the technical one. GovTech ERPs are transactional systems of record—they don’t just facilitate workflows, they execute them, creating financial records with legal and audit consequences. A missed payroll or miscoded journal entry is not just a bad user experience; it can mean an audit finding or compliance violation. This makes government buyers highly risk-averse in vendor selection. SLG decision-makers buy from vendors with documented track records working with similar government entities, and that credibility takes years to build.

High switching costs are an additional barrier. The challenge is not just migrating data and training end users, but also customized configuration (e.g., chart of accounts structures, fund accounting workflows, integrations with state and federal reporting systems). Switching may be easier for smaller SLGs than for large cities, but they remain substantial relative to the potential gain from a more modern solution.

Horizontal vendors: similar barriers to AI-native entrants

The risk from large horizontal players (e.g., Microsoft, Oracle) to “catch up” to the needs of the state and local government customer base is also likely low. They lack the domain expertise and established track record required to succeed in this segment, and the fragmented, relatively smaller SLG ERP market may not justify significant product investment.

Market Shrink Risk

The core ERP is not going anywhere

ERPs are systems of record for government entities. Payroll, general ledger, budgeting, and financial reporting systems are legally binding processes that require auditable and defensible records that cannot be disrupted / eliminated by AI.

Pricing model disruption: Slow-moving but potentially real

Most GovTech ERPs are priced on a per-seat basis, which faces pressure as AI increases productivity and allows fewer users to manage the same workload. However, SLG workforce dynamics are slow-moving. Civil service protections and the political sensitivity surrounding layoffs at the state and local level suggest that AI-driven headcount reductions are more likely to unfold over the medium to long term.

Adjacent market expansion: Opportunity is there, but risk exists for slow movers

Many GovTech ERP vendors have expanded into new areas including analytics dashboards, reporting tools, document management, and workflow automation. These are the point-solution capabilities that AI is most likely to commoditize in the near term.

GovTech ERP vendors have a natural right to win here: they own the data, the customer relationship, and the credibility. However, vendors that move too slowly risk SLGs adopting AI-native point solutions / capabilities from other tools already embedded in their software ecosystem. In these cases, the core may remain resilient while the growth opportunity somewhat softens.

The Takeaway

As expected, the GovTech ERP example lands in a relatively comfortable place. AI is unlikely to result in competitive displacement, and the core functionality is durable.

However, this quick exercise highlights a useful framework on how to consider the various risks that AI can pose, as well as potential mitigants from both a technical and commercial angle. Applying this lens to other types of GovTech software, the key question becomes which elements of the ERP moat persist—and which do not.

As a category, GovTech software benefits from structural advantages that apply broadly: low insourcing risk, limited appetite for displacement from horizontal players, and a risk-averse decision-maker that prioritizes government referencability. On the other hand, GovTech solutions that are workflow-driven—requiring less encoded domain expertise, involving fewer integrations across the broader GovTech stack, and playing a less central role in executing critical government workflows—may be more exposed.

To learn more about GovTech and our broader Software & Technology expertise, visit our Insights page our click here to contact us directly .

Investment Opportunities in a Modernizing GovTech Ecosystem: GovTech Insights & Perspectives

Fri, 17 Apr 2026 13:33:50 GMT

Chen Liu

Partner

Dan Chen

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Executive Summary:

GovTech remains an attractive investment category due to its resilient demand, high switching costs, and fragmented vendor landscape, with modernization trends further accelerating adoption. The market is complex and highly localized, shaped by siloed decision-making, regulatory requirements, and a strong emphasis on trust and proven track records. Structural tailwinds—including rising citizen expectations, regulatory pressures, and resource constraints—are driving continued demand for digital solutions across both internal operations and public service delivery. While relatively insulated from near-term AI disruption, the sector presents opportunities for investors through targeted consolidation and platform-building strategies, particularly in mission-critical and fragmented sub-verticals. Success, however, depends on aligning products with real workflow needs and navigating geographic and operational nuances to create cohesive, integrated solutions.

GovTech has historically been an attractive investment category , supported by resilient end markets, a fragmented vendor landscape, and high switching costs. Recently, the sector has become increasingly more compelling as modernization trends accelerate software adoption and the category remains relatively insulated from near-term AI disruption. At the same time, navigating the market may be difficult due to localized requirements, siloed decision-making, and complex procurement dynamics.

At Grant Thornton Stax , we provide an overview of the GovTech ecosystem for state and local governments, highlight key market trends, and outline where we see some compelling investment themes.

Overview of the State and Local GovTech Landscape

The GovTech ecosystem is complex, spanning a wide range of functions and serving many different state and local government (SLG) entities. At a high level, the landscape can be segmented into two major pillars:

Core internal operations: Software that helps governments operate, including finance and administration, revenue and taxation, IT, asset management, and compliance.
Public service delivery: Software that supports the government entities’ mission and core function. Examples here include public safety, justice administration, health and human services, public works, permitting, and civic engagement.

Overlaying both is a connective layer of software that enables citizen access and digital services across functions—portals, payments, service requests, and public notifications.

What makes the GovTech landscape unique is not just its breadth, but also the purchasing dynamics:

Chen Liu

Partner

Dan Chen

Director

Siloed decision-making across agencies and special districts: Purchasing authority for GovTech software typically sits at the department level (e.g., police, courts, finance) and is sometimes further fragmented into special districts that oversee specific functions (e.g., utilities, school districts).
Highly localized requirements: GovTech software often needs to meet strict state and jurisdiction-specific regulations, workflows, and reporting standards. A solution that works well in one state may require meaningful customization to match the needs of another, making national scaling more challenging.
High importance on trust and referencability: Government buyers heavily weight peer validation and proven track records of working with similar government entities. Vendors often need strong local / regional references to drive adoption.

The result of these factors is a market that has many vertical-specific point solutions and where competitive dynamics are often local or regional. GovTech is best considered as a collection of sub-verticals rather than a monolithic software category.

Market Trends

Across this fragmented landscape, several structural trends are driving demand and reinforcing the attractiveness of the category.

Citizen expectations are escalating: Citizens increasingly expect fast, intuitive, digital-first interactions with government, mirroring private-sector experiences. This is creating strong pressure for SLGs to digitize operations and adopt technology that improves service quality, responsiveness, and accessibility.
Federal aid withdrawal creates service delivery gaps: The federal government is pulling back from programs and funding it historically supported—including the sunset of major Covid-era grants—creating service gaps and voids that SLGs must fill with fewer resources and increasing demand for technology that drives efficiency and cost-effective service delivery.
Regulatory pressures continue to proliferate: SLGs face both longstanding and newly emerging compliance and regulatory pressures driven increasingly by state-level mandates focused on transparency, reporting accuracy, constituent accessibility, and broader public accountability.
Data protection and AI emerge as strategic priorities: Governments are balancing expanding federal and state-level data privacy and governance mandates with the adoption of AI-enabled tools, while active federal and state debates on AI governance signal momentum but leave the regulatory path uncertain.
Platform vendors accelerate consolidation to capture wallet share: Leading GovTech platforms are increasingly acquiring and integrating niche point solutions to broaden functionality across government use cases, unify data environments to strengthen security posture, and deepen customer entrenchment.
Fragmentation of GovTech solutions persists among smaller government entities: Despite consolidation among GovTech vendors, SLGs remain highly fragmented in their decision-making. They are historically more common in larger governments but increasingly seen among smaller ones. At the same time, technology adoption prompts decisions to align by function, creating departmental silos, inconsistent priorities, and decentralized procurement.

Investment Perspectives

As a category, GovTech stands out because it tends to be sticky, resilient, and supported by durable tailwinds. Spending is tied less to discretionary budgets and more to the ongoing need to maintain essential services, meet regulatory requirements and improve constituent outcomes. Many products become deeply embedded in government workflows, often serving as systems of record or systems of action around sensitive, regulated, or operationally critical processes.

Relative to other vertical SaaS, this category also seems to be relatively insulated from near-term AI disruption risk. In many GovTech sub-segments, there is minimal insourcing risk, limited horizontal player appetite, and decision-makers prioritize domain expertise, reliability, and compliance over adopting the newest technologies.

Conclusion

Our experience across the GovTech ecosystem reinforces this platform-driven investment thesis, with deep transaction exposure spanning civic engagement, payments, ERP, and tax administration systems. We have supported strategic buyers in identifying and underwriting cross-sell synergies within legislative and citizen engagement platforms, while also validating the ability of payment and workflow solutions to consolidate fragmented municipal systems. To learn more about our expertise, visit our Insights page or click here to contact us directly.

Featured by The Food Institute: Pet-Food Investments Surge as Gen Z, Millennials Drive Humanization Trend

Thu, 09 Apr 2026 13:45:55 GMT

Samantha Pinkes

Director

This article was originally written for " The Food Institute " by Kelly Beaton .

If you’ve noticed your friends, family and neighbors pampering their pets recently, you’re not alone. Major food manufacturers have taken note of the trend, too, pouring millions into the pet-food category as a result; earlier this year, for instance, J.M. Smucker invested $20 million in a pet-food plant in Topeka, Kansas.

If you find that figure eye-opening, consider this news that occurred less than a month later: Nestlé Purina invested $2.5 billion in a new pet-food factory in Vargeão, Brazil.

As the “humanization” of pets gains momentum, investments in pet-food seem likely to continue. The bond between man and domesticated (and loveable) beast has never been stronger. Gen Z and Millennial pet parents are leading the humanization movement, according to the U.S. Chamber of Commerce.

If you’re looking for a recession-proof business, pet food is near the top of the list.

“People tend to want to keep their pet happy and healthier – and usually will compromise their own lifestyle instead of their dog’s,” Ali Smith, a pet expert at Rebarkable, told The Food Institute.

Samantha Pinkes

Director

The pet-food sector has historically demonstrated resilience, even during economic downturns.

“Demand for premium, specialized and science-backed pet nutrition continues to grow, and manufacturers are investing in facilities that allow them to scale efficiently while staying close to supply chains and R&D resources,” explained Rhiannon Friedman, president of GO Topeka.

“The numbers don’t lie; pet food has delivered the kind of consistent, premium-leaning growth that’s become genuinely rare in the broader food industry,” said Russell Breuer, CEO of the Spot & Tango brand.

“Large manufacturers are recognizing that pet food isn’t just defensive. It’s where innovation is happening right now,” Breuer told FI. “The ingredient standards, the formulation science, the direct relationships with consumers – it’s more dynamic than some human-food categories at the moment.”

That competition is good for pet owners, the CEO said, and it pushes the entire sector forward.

The global pet-food market, which was valued at nearly $135 billion in 2025, is projected to reach $303.8 billion by 2036. The market is expected to grow at a CAGR of 7.7% over the next decade, with dog food dominating, according to Future Market Insights.

“We’re seeing increased investment in pet food largely because it sits at the intersection of strong consumer demand, premiumization, and relatively stable growth,” said Samantha Pinkes, director at Grant Thornton Stax. “Pet ownership surged during and after the [Covid] pandemic, expanding the total addressable market.

“At the same time, consumers are trading up by seeking higher-quality, functional, and specialized nutrition for their pets.”

So, what are all those Gen Zers and Millennial parents purchasing for Fido?

“Dog guardians are getting wise to ‘low-grade’ pet food and no longer want to accept it,” said Smith, a dog trainer and behavior expert. “Scientific research is showing that there’s an increase in healthiness associated with feeding fresh food as opposed to kibble.”

Industry experts foresee the most growth potential in the following types of pet food:

Fresh and properly balanced raw products
Fresh-dry
Those tied to measurable health outcomes

Pet-food brands that can substantiate the healthiness of the claims on their bag, transparently, appear poised to win.

After all, the pet-humanization movement shows zero signs of slowing.

“Pet owners aren’t just feeling more attached to their dogs,” Breuer said. “They’re reading ingredient panels. They’re asking their vet about nutrition. They’re choosing brands based on sourcing transparency and clinical backing, not just marketing – that’s a different consumer than we had even five years ago.

“Pet owners are asking more sophisticated questions, and the brands that can answer them with real data – not just a ‘natural’ callout on the front of the bag – are going to have a durable advantage.”

5 RSA Conference 2026 Takeaways for PE Investors

Wed, 08 Apr 2026 17:59:08 GMT

Sam McCabe

Director

Tyler Michaels

Director

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Executive Summary:

The latest RSA Conference underscored a cybersecurity market in the midst of a structural shift, where AI is no longer an overlay but a force reshaping how security is built, delivered, and evaluated. Agentic AI is redefining the Security Operations Center, moving from alert-driven workflows to autonomous investigation and remediation, though questions remain around differentiation as vendor positioning converges. At the same time, enterprise buyers are demanding greater transparency into how AI models are trained and governed, elevating the importance of proprietary data, human-in-the-loop design, and explainability as core purchase criteria.

The conversation has also expanded to treat AI itself as an attack surface, driving renewed demand in identity, governance, and emerging AI-specific security tooling. These dynamics are reinforcing the long-anticipated shift toward platform consolidation, where integrated data layers and control over telemetry become prerequisites for effective AI deployment, though execution risk remains. Against this backdrop, valuation frameworks are evolving, with investors prioritizing durability of growth, retention, and unit economics over headline expansion rates.

RSA Conference returned to San Francisco last week as the cybersecurity industry's flagship annual gathering. For deal teams evaluating cybersecurity assets, the conference offered a useful ground-level read on market direction and the implications for near-term investment decisions.

Below are five themes that defined the conversation in and around RSA this year, and our take on how each will influence diligences on cybersecurity assets over the next year:

1. Agentic-based security is everywhere - including eating the SOC category.

One of the clearest signals from RSA was that the Security Operations Center (SOC) is being fundamentally reimagined. Vendors are now marketing platforms where AI agents autonomously investigate, triage, and remediate threats in real time rather than simply surfacing alerts for human review. The collective pitch is compelling given persistent analyst burnout and a well-documented talent shortage in cybersecurity. Large-scale enterprise deployments remain early, and the next twelve months will be the real proof of concept for autonomous SOC capabilities.

That said, there was a striking similarity with the messaging across the 20+ AI-enabled SOC vendors on the floor (also plastered on cars and bar front windows around the venue) and they raised questions about the true durability of long-term moats.

Key Diligence Considerations: As agentic SOC platforms proliferate, product capability alone is unlikely to be a durable differentiator. The more important question is how deeply embedded a target is in the customer's operational workflow. Rather than feature parity, assess evidence of sustained usage, customer dependency, and expansion revenue. Winners in this market are likely to be vendors that combine automation with strong customer stickiness, whether through data gravity, workflow ownership, or organizational reliance built over time.

Sam McCabe

Director

Tyler Michaels

Director

2. AI model transparency is becoming a buying requirement, and thoughtful human-in-the-loop is differentiating

A notable shift at RSA was the level of scrutiny buyers are applying to how AI-driven security products are built. Vendors moved beyond high-level "AI-powered" claims and walked through model architecture, training data sources, and the role of experienced security practitioners in shaping outcomes. What resonated most was an emphasis on human-annotated ground truth rather than undifferentiated historical data. CISOs are increasingly unwilling to treat AI as a black box, and understanding what a model was trained on, how domain expertise was incorporated, and how edge cases are handled is becoming a prerequisite for purchase rather than a differentiator.

Key Diligence Considerations: Push beyond surface-level AI positioning. Does the target have proprietary training data or human feedback loops that would be difficult for a competitor to replicate? Is the domain expertise embedded in the model a durable moat or something that can be commoditized over time? Do customers trust and recognize the value of the ‘AI’ in the solution, or does it potentially create more sales friction? The answers are important signals of long-term product defensibility.

3. AI is an attack surface, not just a defense tool

RSA 2026 made clear that the cybersecurity conversation around AI has expanded beyond its role as a defensive tool. AI systems, including large language models, autonomous agents, and AI-powered copilots embedded in enterprise workflows are increasingly being treated as attack surfaces in their own right. Threat vectors such as prompt injection, agents operating with elevated permissions, models ingesting unverified external data, and dark usage of AI tools across the organization introduce risks that traditional security architectures were not designed to address.

These dynamics are reshaping demand across adjacent security categories and are likely to materially expand the landscape of ‘cyber’ spend. Identity and access management, which appeared to be trending towards maturity 3-5 years ago, is entering a renewed expansion phase as enterprises confront the need to manage machine identities, agent permissions, and more complex insider risk models.

In parallel, a nascent category of tooling focused on AI governance, monitoring, and control is beginning to emerge and drew meaningful attention at the conference. Supporting this shift, AI governance frameworks are also maturing, with standards such as ISO 42001 gaining tangible traction among enterprise buyers.

Key Diligence Considerations: AI security and governance is still nascent, but demand is accelerating as enterprise AI adoption outpaces the development of appropriate guardrails. For assets operating in adjacent spaces such as identity, data security, or application security, a key question is whether AI risk is meaningfully on the product roadmap or represents a gap that a better-positioned competitor could move into.

4. Platform Consolidation: The value proposition is stronger, but execution remains to be seen

Platform consolidation has been a theme in cybersecurity for years, with buyers consistently expressing a desire to reduce tool sprawl without meaningfully following through. What feels different heading into 2026 is that the rationale has sharpened. Fragmented toolsets produce fragmented data, and AI-powered security capabilities are only as good as the telemetry feeding them. The desire to consolidate around integrated data flows to fuel AI gives buyers a more compelling reason to actually act. Whether purchasing behavior catches up to stated intent remains the open question.

As AI becomes more embedded across security workflows, proximity to core telemetry and control over data flows increasingly influence a platform’s ability to sustain relevance and defend its position. With AI integrated into development, well-capitalized platform leaders hold an advantage in replicating functionality, raising the bar for emerging and scaling entrants to demonstrate a durable moat beyond near-term tailwind-driven growth.

Key Diligence Considerations: Assess whether a target is positioned as a consolidation winner or a point solution at risk of being rationalized out of the stack. Customer retention trends and expansion revenue are useful signals, as is whether the product sits within an integrated data layer or operates in isolation from the broader platform environment.

5. Valuation is being driven by business quality, not just growth

Perhaps the most relevant takeaway for investors is how the market is currently pricing cybersecurity businesses. Data discussed at RSA reinforced that revenue growth alone is a weak predictor of valuation in this sector. Companies commanding premium multiples are demonstrating strong retention, healthy margins, and capital efficient go-to-market motions. The market is increasingly rewarding durable growth over fast growth as investors seek to avoid overpaying for tailwinds that may prove transient.

Key Diligence Considerations: Growth rate is a starting point, not a conclusion. The more important questions are whether growth is driven by expansion within existing customer relationships or by aggressive new logo acquisition masking elevated churn. Investors should also assess whether the go-to-market unit economics remain durable at scale and whether performance is supported by true commercial differentiation or simply favorable market tailwinds that could fade as the rapidly ‘rising tide’ slows, and supply/demand dynamics approach parity. At current deal multiples, the quality of growth matters as much as its absolute pace.

Conclusion

RSA 2026 reinforced that the cybersecurity sector is moving quickly, and the strategic and technological shifts underway have real implications for how investors evaluate assets in this space. How a company is building its AI layer, whether its product position is defensible in a consolidating market, and whether its fundamentals hold up under scrutiny are the questions that will increasingly separate premium assets from the rest of the pack.

To learn more about Grant Thornton Stax and our cybersecurity expertise, visit our Insights page or contact us directly .

Paul Edwards Featured on The Consulting Report's Podcast: Top Consultant

Wed, 08 Apr 2026 16:43:21 GMT

Grant Thornton Stax Global Practice Lead Paul Edwards recently joined the Top Consultant podcast hosted by T he Consulting Report , to discuss his career and Grant Thornton Stax. Hosted by RJ Lumba, the show highlights nominees of their "Top Consultant" lists to learn more about them and how they do the work they do.

Tune in to the episode to learn more.

Pau l Edwards

Global Practice Lead

Grant Thornton Stax Advises Uplift Investors on its Acquisition of IMS Legal Strategies

Mon, 06 Apr 2026 18:12:12 GMT

Grant Thornton Stax congratulates Uplift Investors on its recent acquisition of IMS Legal Strategies , a global provider of expert and advisory services supporting law firms and corporations through complex litigation processes. We are proud to have provided our investment advisory services to support Uplift Investors.

IMS Legal Strategies is a global partner to law firms and corporations, offering specialized support for complex disputes throughout the litigation lifecycle. Its services include expert witness placement, analytical and advisory capabilities, and data-driven jury consulting.

Founded in the early 1990s, IMS has since evolved into a comprehensive provider of consulting and expert solutions focused on high-stakes litigation. Today, the firm supports clients end-to-end, spanning expert sourcing, strategic advisory, analytics, and jury-focused insights.

Contact the Grant Thornton Stax team to learn more:

Tyler Veit

Roy Lockhart

Partner

Miriam El-Baz

Managing Director

About Grant Thornton Stax

Grant Thornton Stax is a global management consulting firm serving corporate and private equity clients across a broad range of industries including software/technology, industrials, business and information services, healthcare and HCIT, consumer, and tradeshows and events.

Youth Sports: Expanding Value in a Growing Market

Mon, 06 Apr 2026 18:01:48 GMT

Owen Tindle

Managing Director

Luke Scheibel

Director

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Position

Name

Position

Name

Position

Executive Summary:

Youth sports has become an increasingly attractive investment category due to its fragmented structure, resilient demand, and growing levels of family spending, which are driven by year-round participation, rising travel costs, and the perceived developmental value of athletics. While spending has increased significantly, future growth will depend less on continued price expansion and more on how effectively operators deepen monetization across the athlete lifecycle. Institutional investment has accelerated professionalization and consolidation, enabling more sophisticated, platform-based business models that capture value across training, events, and related services. Despite higher costs, demand remains durable because families view participation as a priority, though sensitivity to pricing may vary across segments. Ultimately, the most successful platforms will be those that align pricing with clear value while expanding revenue through integrated, multi-touchpoint offerings.

How operators and investors can drive sustainable growth by deepening the value delivered to every athlete and family.

Overview

Youth sports has emerged as one of private equity’s most actively targeted consumer categories. The market is fragmented and resilient, supported by recurring family investment, limited cyclicality, and significant runway for professionalization. Per-athlete spending has risen 46% since 2019 and the sector now generates an estimated $40B+ annually in the US, with institutional capital flowing in at scale.

Yet the most important question facing the sector is not how much more families can be charged—rather, how much more value operators can deliver. The platforms best positioned for durable growth are those that deepen the athlete experience, broaden access, and earn pricing power through demonstrated outcomes rather than market consolidation alone.

Grant Thornton Stax has examined the structural drivers of spending growth, the evidence on demand durability, the access and affordability risks that investors must take seriously, and the value-creation framework best positioned to extend sustainable growth.

The Spending Surge: What Drove It and What Sustained It

Owen Tindle

Managing Director

Luke Scheibel

Director

Youth sports costs have risen significantly in recent years. The average US sports family spent $1,016 on their child’s primary sport in 2024, a 46% increase since 2019 ( State of Play 2025, Aspen Institute Sports & Society Program ). Many families, especially those in travel sports, spend considerably more.

This spending growth has fueled revenue expansion across leagues, tournament operators, and training providers. But it also raises an important question for investors: how much of this growth reflects genuine value creation, and how much reflects fee inflation in a market where families feel compelled to participate regardless of cost?

Several structural trends have contributed to rising spending:

Broader Participation:

Youth sports participation now spans younger athletes and a wider range of skill levels. Many athletes compete on multiple teams, particularly at the club level, creating incremental revenue opportunities for well-organized platforms.

Year-Round Development Models:

Youth sports have shifted from seasonal participation to 12-month development cycles. Year-round training, private coaching (typically $40–$120/hour), specialized camps, and performance analytics have expanded the services available per athlete—and with them, the opportunity to deliver real developmental value.

Travel and Tournament Infrastructure:

Tournament participation has become geographically distributed, creating meaningful experiences for families and communities. Travel and lodging now average $414 per family annually across all sports, rising to $3,000–$5,000 for travel baseball families specifically. Platforms that deliver a high-quality, well-organized tournament experience can command a premium that families willingly pay.

College Recruiting and Development Aspiration

Families increasingly view elite programming as a pathway to college scholarship access and improved admissions prospects at selective universities. The NCAA distributes approximately $3.6 billion in athletic scholarships annually across Division I and II programs. Even where the odds are long—fewer than 3% of high school athletes earn any athletic scholarship money—the perceived optionality continues to support investment in premium participation.

Insight for Investors: Parents don’t experience youth sports spending as a discretionary luxury—they experience it as a developmental investment in their child’s future. That psychological framing is both the source of the market’s resilience and its primary obligation: families are trusting operators to deliver real value in exchange for meaningful financial commitment.

What Drives Lasting Value—and Lasting Revenue

Institutional capital has brought real improvements to the youth sports experience: greater organizational stability, better facilities, more consistent programming, and access to technology and analytics that were previously unavailable to regional operators. The best-managed platforms have used scale to deliver materially better outcomes for athletes and families.

The key levers for sustainable revenue growth are not price increases in isolation—they are expansions of what families receive in return for their investment:

Professionalization and coaching quality: Families consistently cite coaching quality as the primary driver of their participation decisions and willingness to pay. Platforms that invest in coach development, certification, and retention deliver compounding value.
Vertical integration through venues and event infrastructure: Operators who own or manage tournament complexes and facilities can deliver integrated experiences , including better fields, amenities, and event production—that justify premium pricing through demonstrated quality.
Recruiting visibility and exposure: Families invest in elite programming because they believe it creates opportunity for their athletes. Platforms that deliver measurable recruiting outcomes (i.e., college placements, exposure events, coach connection) earn durable loyalty and pricing power.
Year-round development with genuine outcomes tracking: The shift to year-round models is only as valuable as the development it produces. Platforms that track and communicate athlete improvement create a defensible value proposition that transcends price sensitivity.

Demand Durability: What the Evidence Shows

Despite rising costs, demand for youth sports remains durable—but that durability is not unconditional. Understanding its limits is essential for sound investment underwriting.

Higher-income households show limited price sensitivity and are significantly more likely to participate in travel sports. Financially constrained families tend to reduce event participation rather than exit the ecosystem altogether. In surveys conducted across hundreds of parents, kids’ activities and sports consistently ranked among the least likely discretionary expenses to be cut during economic downturns.

While fee increases beyond typical thresholds can generate pushback—particularly for younger athletes in segments rising ~10–15% annually—families generally accept higher costs when they are clearly linked to better outcomes: improved coaching, better facilities, or higher-quality competitive experiences.

Key Investor Insight: Youth sports does not appear to be approaching a participation ceiling today. However, the sector faces a real and growing risk: if price increases outpace perceived value, families with choices will make them. The platforms most exposed are those raising prices without commensurate improvements to the athlete experience.

Key variables that influence price sensitivity include:

Where does the product sit on the value-for-money spectrum by age, sport, and geography?
Are price increases supported by incremental value creation, or primarily driven by fee inflation?
What is the relationship between pricing changes and customer retention and satisfaction?
Is the model expanding access through tiered offerings, or gradually narrowing who can participate?
How does the platform communicate the value families receive in exchange for their investment?
How exposed is the model to growing political and regulatory scrutiny around affordability and private equity involvement in youth sports, particularly as rising prices and consolidation draw greater attention to access and perceived value?

The Affordability Imperative: Protecting the Market’s Long-Term Health

The affordability of youth sports is not just a public policy concern—it is a business risk. A market that prices out middle-income families over time is a market that shrinks its own participation base, narrows the pipeline of future athletes, and invites regulatory and reputational scrutiny.

Thoughtful operators and investors recognize this. The platforms best positioned for long-term value creation are those that treat access and affordability as strategic priorities, not afterthoughts:

Tiered participation models: Segmented offerings—from community-level recreational programs to elite development pathways—allow platforms to serve a broad participant base while offering premium experiences for families who seek them. Critically, tiered models expand TAM rather than concentrating it.
Scholarship and financial assistance programs: Operators with structured aid programs demonstrate commitment to the communities they serve and protect against demographic concentration at the top of the income distribution.
Community partnerships and municipal relationships: Platforms that partner with schools, parks departments, and community organizations build goodwill, broaden reach, and reduce dependence on affluent markets.
Transparent pricing and value communication: Families are more accepting of premium pricing when they understand what they are paying for. Clear communication about coaching credentials, facility standards, and athlete outcomes reduces price friction.

The long-term health of the youth sports market depends on broadening participation, not narrowing it. Operators that build tiered access models, scholarship programs, and community pathways are not just doing good—they are protecting their own TAM and earning the trust of families, communities, and regulators.

A Value Creation Framework for Sustainable Growth

The most durable growth in youth sports will come from expanding the value delivered across the athlete lifecycle, not from extracting more from a static participant base. The following framework outlines the primary levers:

Lifecycle Value Deepening

Platforms can grow revenue by delivering more value at each stage of the athlete journey—from early skill development and introductory camps to elite travel teams, recruiting services, and alumni programming. The key is that each stage must deliver genuine developmental or experiential value that families recognize and value.

Tiered Participation and Premium Development Pathways

Segmented offerings allow platforms to serve athletes at every level of commitment and skill, from recreational participants to elite competitors. Well-designed tiered models increase total participation while creating clear upgrade pathways for families who want more.

Digital Services and Recruiting Enablement

Platforms can create meaningful value through recruiting databases, athlete profiles, highlight video distribution, and concierge-style recruiting support. These services address a genuine family need and create stickiness that extends well beyond the playing season.

Platform Ecosystem Economics

Ownership or control of facilities, tournaments, and event infrastructure allows operators to deliver integrated, high-quality experiences while capturing value through entry fees, concessions, sponsorships, and lodging partnerships. The key is that the experience quality must justify the cost.

Merchandise, Media, and Brand Monetization

Scaled platforms can generate incremental revenue through standardized apparel programs, branded merchandise, sponsorships, and digital media tied to tournaments and athlete exposure. These opportunities are most durable when they are anchored to a brand families trust and a community they feel connected to.

Conclusion

Youth sports is a genuinely resilient and valuable market and the families who invest in it are making a real bet on their children’s development, health, and opportunity. That emotional and financial commitment is the sector’s most valuable asset.

The investment case for youth sports is strongest when it is built on value creation rather than pricing power alone. Platforms that deliver better coaches, better facilities, better competitive experiences, and clearer pathways to athletic and personal development will earn the pricing authority and family loyalty that sustain long-term growth.

Equally important, platforms that invest in access through tiered models, scholarship programs, and community partnerships are not sacrificing returns. They are expanding the market, deepening community trust, and building the kind of durable participant relationships that generate compounding value over time.

To learn more about youth sports market dynamics and investment considerations, visit our Insights page or contact us directly.

Grant Thornton Stax Advises CenterOak Partners on its Acquisition of Grismer Tire & Auto Service

Thu, 02 Apr 2026 18:14:13 GMT

Grant Thornton Stax congratulates CenterOak Partners on its recent acquisition of Grismer Tire & Auto Service , a leading operator of tire and automotive service centers. We are proud to have provided our investment advisory services to support CenterOak Partners.

Headquartered in Dayton, Ohio, Grismer Tire & Auto Service is a prominent independent provider of tire and automotive services. The company delivers a full suite of offerings, including mechanical and electrical repairs, routine and preventive maintenance, and tire replacement, serving a wide range of vehicles such as electric and hybrid models. With more than 90 years in operation, Grismer has earned a strong reputation for quality workmanship, dependable customer relationships, and competitive pricing.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Lead

Sameer Tejani

Managing Director

Jake Bies

Director

Position

About Grant Thornton Stax

The New Growth Cycle: Why IT Services Is One of the Most Compelling Sectors for Private Equity Investment

Mon, 30 Mar 2026 14:58:15 GMT

Andrew Keller

Managing Director

Tyler Michaels

Director

Name

Position

Name

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Executive Summary:

The IT services sector is entering a new growth cycle defined by strong investment tailwinds, primarily driven by AI adoption, rising cloud complexity, and persistent cybersecurity needs. Grant Thornton Stax has observed that value is shifting toward providers that offer specialized, recurring, and outcome-based services rather than traditional reselling or labor-driven models.

AI is both expanding demand and reshaping service delivery, while cybersecurity has become a non-discretionary, embedded requirement across IT environments.

At the same time, multi-cloud adoption and evolving hyperscaler ecosystems are increasing complexity and pushing providers toward higher-value advisory and integration roles. Managed service providers are particularly well positioned due to their recurring revenue and exposure to these growth areas, with success increasingly tied to automation and operational sophistication.

The global IT services market is undergoing a structural transformation. Driven by the convergence of artificial intelligence, accelerating cloud complexity, and an unrelenting cybersecurity threat environment, the sector is entering a new growth cycle that is materially different from the expansion wave of the previous decade. For private equity investors and corporate acquirers, understanding where value is being created, and where it is being eroded, has never been more consequential.

With the global IT services market forecast to grow at approximately 8–9% CAGR to reach $1.9 trillion by 2026 , and managed services outpacing the broader market at 10–11% CAGR, the sector offers a rare combination of scale, recurring revenue models, and structural demand tailwinds. The challenge for investors is not whether to participate, but how to identify the sub-segments and business models best positioned to capture disproportionate value.

The sector is also attracting a new wave of software-oriented investors seeking to leverage their technology expertise while side-stepping near-term uncertainty around AI's impact on software business models. As this capital rotation accelerates, deal competition in the highest-quality assets is likely to intensify.

Is AI a Driver, Catalyst, or Delivery Disruptor?

Artificial intelligence is simultaneously the most significant demand driver, the largest infrastructure catalyst, and the most consequential delivery disruptor in the IT services market. For investors, each dimension carries distinct implications.

On the demand side, the AI readiness gap has become the single largest near-term opportunity for resellers, IT consultancies, and systems integrators. Gartner forecasts worldwide AI spending to reach $2.5 trillion in 2026, up 44% year-on-year . Critically, 76% of enterprise AI use cases are now purchased rather than built in-house , up from 53% in 2024—a decisive shift that validates the role of external IT services providers in AI deployment. Enterprises require rare specialist skills in data readiness, model governance, change management, and workflow redesign, and very few possess these capabilities internally.

Andrew Keller

Managing Director

Tyler Michaels

Director

On the infrastructure side, the hyperscaler capital expenditure super-cycle is generating enormous downstream services demand. The four largest US hyperscalers—Microsoft, Alphabet, Amazon, and Meta— are on course to spend a combined $650–700 billion on capital expenditure in 2026 , a year-on-year increase of more than 60% and roughly triple their collective spend from just two years ago. These commitments are creating demand for architecture design, migration, and ongoing optimization services across compute, networking, storage, and data engineering—work that flows primarily to providers with established hyperscaler partnerships and certified infrastructure capabilities.

On the delivery side, AI automation is beginning to reshape the economics of IT services itself. Significant efficiency gains are achievable across software development, IT service desks, infrastructure operations, and security operations center functions. Over time, this will put pressure on traditional time-and-materials billing models as clients demand productivity gains—but in the near term, it represents a margin expansion opportunity for providers who deploy AI in their own delivery operations ahead of competitors.

Cyber is Everywhere: Non-Discretionary, Structural, and Evolving

Cybersecurity has transcended its status as a discrete technology category to become an embedded requirement across infrastructure, cloud, applications, and data. This shift has profound implications for IT services providers: security is no longer a project or a product but an ongoing managed outcome, and it is one of the few areas of enterprise IT spending that is genuinely non-discretionary.

IBM Security data indicates that one in five organizations has experienced a breach linked to shadow AI —a statistic that illustrates how the AI expansion is simultaneously creating new threat vectors at scale. Meanwhile, the global cyber skills shortage remains acute, with nearly half of organisations citing a lack of AI-security expertise as a major operational barrier. This scarcity dynamic sustains premium pricing for managed security services, MDR/XDR capabilities, and cyber consulting engagements.

The delivery model for cybersecurity services is evolving rapidly. AI-powered platforms are beginning to automate basic analyst functions, while raising demand for higher-order services: architecture design, identity management, cloud security, and continuous control validation. The vendor ecosystem is consolidating around platform models—a dynamic that shifts value away from point-product resellers and toward partners capable of delivering integrated, outcome-based security services.

Cloud Complexity and the Channel in Transition

Cloud adoption has moved well beyond the initial migration wave. According to the Flexera 2025 State of the Cloud Report , approximately 70% of enterprises now operate hybrid cloud strategies, with the average enterprise using 2.4 public cloud providers simultaneously. This complexity is not diminishing—it is intensifying. Approximately 41% of enterprises report repatriating at least some data from public cloud due to cost, performance, or compliance concerns, according to Kyndryl's 2025 Cloud Readiness Report . Sovereign cloud requirements are adding a further layer of complexity, with Gartner forecasting global sovereign cloud IaaS spending to reach approximately $80 billion in 2026 , a 35.6% increase year-on-year.

For IT services providers, rising cloud complexity is a structural demand tailwind for advisory, FinOps, migration, integration, and managed cloud operations. Providers with genuine multi-cloud capabilities and regulatory expertise are well positioned to capture a disproportionate share of this demand.

At the same time, the channel through which IT services are delivered and procured is undergoing significant structural change. Hyperscaler marketplaces—AWS, Azure, and Google Cloud—are becoming major procurement channels for software and services, and vendors are reshaping partner economics to emphasise co-sell and services-led engagement models. Traditional reselling margins are under pressure. Value is migrating toward solution integration, advisory services, and lifecycle management tied to hyperscaler ecosystems. Providers who fail to make this transition risk being disintermediated.

Where Private Equity Value Is Being Created

Against this backdrop, not all parts of the IT services value chain are equally attractive. Grant Thornton Stax's analysis identifies managed service providers as the most compelling sub-segment for private equity investment, a view that should continue to hold—and strengthen—as the market evolves. MSPs combine recurring revenue (ideally above 60% of total revenue), high customer retention, and exposure to the high-growth domains of cybersecurity, cloud, and AI enablement. The sub-sector remains fragmented, offering significant buy-and-build potential for investors with the appetite and capability to build scaled platforms.

For investors, value creation in the sector is best understood through two lenses: the demand pockets driving top-line growth, and the operational levers enabling margin expansion.

Revenue Drivers: Where Demand Is Concentrated

AI readiness is the single most significant near-term demand driver. Enterprises need external support across the full adoption lifecycle—from data foundation services (including master data management, data quality, and governance), which establish the foundations without which AI deployment fails, through tool selection, implementation, and ongoing governance. MSPs converting AI advisory into durable managed services relationships, SIs embedding MDM and data readiness into broader transformation mandates, and VADs building structured AI advisory practices are all capturing this demand. Those that can demonstrate measurable real-world outcomes are establishing defensible positions; those that cannot are competing on price.

Cybersecurity remains the other structural revenue engine. Non-discretionary spend, a persistent skills shortage, and AI-generated threat vectors sustain premium pricing for managed security, MDR/XDR, and cyber consulting across MSPs, SIs, and VADs alike—particularly those with established European positions where consolidation is accelerating. Value-added resellers growing managed security revenue are genuinely interesting; those dependent on a single vendor's incentive programme face structural risk as channel economics are reshaped.

Cloud complexity is a durable third tailwind. Multi-cloud sprawl, repatriation activity, and sovereign cloud requirements are sustaining demand for advisory, FinOps, migration, and managed cloud operations well beyond the initial migration wave—with SAP timelines extending SI demand through 2027. IT consultancies remain the highest-risk segment regardless: discretionary billing models and AI-driven margin compression create headwinds that only firms with proprietary IP or productized offerings are likely to withstand.

Margin Expansion: The Operational Value Creation Lever

The less covered opportunity lies in AI-driven delivery automation. Tooling that automates monitoring, ticketing, and Tier 1 support in MSP operations; migration execution in cloud practices; and first-line analyst functions in security operations centres is enabling providers to expand margins without proportionate headcount growth. EBITDA trajectory is increasingly a function of operational sophistication, not just revenue mix—and providers who have made deliberate investments in automation tooling should command valuation premiums over peers with comparable revenue but more labour-intensive delivery models. This remains an underweighted dimension in many PE diligence processes.

Strategic Implications: Where to Focus, What to Watch

The IT services sector is entering one of its most dynamic periods in a generation. The convergence of AI adoption, cloud complexity, and cybersecurity demand is creating durable, structural growth that will sustain deal activity and premium valuations in the most attractive sub-segments for years to come. But selectivity is essential.

Investors should focus on providers with high recurring revenue, genuine multi-domain capabilities, and strong hyperscaler partnerships—the businesses best positioned to capture the downstream services demand generated by the AI infrastructure super-cycle. They should monitor vendor channel programme changes closely, particularly from Microsoft, Palo Alto Networks, CrowdStrike, and Broadcom/VMware, as these have the potential to reshape partner economics significantly. And they should treat AI-driven service delivery automation not as a risk to margin but as an operational value creation lever—one that the most sophisticated MSPs and managed security providers are already deploying to material effect.

The question for PE investors is not whether the IT services sector warrants capital allocation. It demonstrably does. The question is whether the assets they are evaluating are positioned on the right side of the structural shifts reshaping the market—and whether the management teams running them have the clarity to navigate the transition from product distribution to outcome-based services.

To learn more about our IT and Cyber expertise, visit our Insights page or contact us directly .

Grant Thornton Stax Provides Sell-side Support to File & ServeXpress on its Acquisition by Northlane Capital Partners

Thu, 26 Mar 2026 18:19:50 GMT

Grant Thornton Stax congratulates File & ServeXpress , a leading SaaS provider of online document exchange services and payment solutions for legal professionals and court systems in the US, on its recent acquisition by Northlane Capital Partners . We are proud to have supported File & ServeXpress (FSX), a former Strait Lane Capital Partners portfolio company, on the sell-side, working closely with its management team and investment bank, Lincoln International, throughout this successful transaction.

FSX delivers an end-to-end platform that links courts, law firms, and other stakeholders throughout the adjudication process. Its scalable, interoperable solutions simplify filing, automate workflows, improve visibility, and reduce administrative complexity for courts and legal professionals across jurisdictions and practice areas.

With over 40 years of combined legal technology experience, FSX has built a strong market presence. The platform supports more than 100 million documents, serves over 200,000 users, and is deployed across 1,900+ courts nationwide, including usage by the top 100 US litigation firms.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Lead

Roy Lockhart

Partner

Tyler Michaels

Director

Position

About Grant Thornton Stax

A Recap: Youth Enrichment Services Breakfast

Mon, 23 Mar 2026 18:57:13 GMT

Robert Lytle

Partner

Miriam El-Baz

Managing Director

Name

Position

Name

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Executive Summary:

Grant Thornton Stax and William Blair recently hosted a discussion on the evolving landscape of youth enrichment services. Alongside key investors and sector specialists, we examined critical trends and market dynamics currently shaping the industry—as well as its most promising investment opportunities.

The panel featured four industry leaders representing both academic and non-academic youth enrichment segments:

Brandon Bean , CEO, Big Blue Swim School
Justin Miller , CEO, Rush Soccer
Joel Butterly , Co-Founder & CEO, InGenius Prep
Matt Noble , CEO, Galileo Learning

The youth enrichment services market is emerging as a compelling investment space, underpinned by accelerating demand and a highly fragmented provider base primed for professionalization and consolidation. As the landscape evolves into a more structured, platform-oriented market, interest in scaled models that can optimize operations and improve consistency is growing.

Several tailwinds are driving steady expansion in youth enrichment participation and prioritization, including:

Growing target population
Increasing emphasis on whole child development
Rising competitiveness of college admissions
Positive feedback loop of role models, peers, and children
Accelerating specialization

Increased parental focus on youth enrichment is elevating expectations for program quality, communication, and execution. This dynamic favors scaled, professionally-managed providers that bring operational sophistication and deliver consistent, high-quality instruction and coaching—though much of the landscape remains sub-scale and uneven in quality and formality.

The recession resilience of youth enrichment demand represents another investible theme. Even amid macroeconomic uncertainty, spending on youth enrichment behaves more like a necessity than a discretionary expense, particularly among higher-income, education-focused households.

At the same time, the market is not without its manageable risks. Pricing pressure, labor challenges, and strong customer loyalty dynamics create limitations to growth and elevate the importance of differentiation and execution.

As the market matures, winning models are beginning to take shape. Scaled platforms—whether focused on a single category with a strong brand or diversified across multiple offerings—are executing on clear growth pathways, with each model presenting distinct trade-offs.

With a pipeline of assets expected to come to market over the next 6-18 months, the next phase of the category is likely to be defined by professionalization and consolidation against the backdrop of growing and evolving demand.

Robert Lytle

Partner

Miriam El-Baz

Managing Director

Event Hosts:

Robert Lytle

Partner

Grant Thornton Stax

Justine Chiou

Managing Director

William Blair

Scott Warren

Managing Director

William Blair

Peter Hoffmann

Director

William Blair

Miriam El-Baz

Managing Director

Grant Thornton Stax

Kate Hui

Managing Director

Will iam Blair

Maggie Wilmouth

Director

William Blair

Grant Thornton Stax Provides Sell-side Support to AKAM on its Acquisition by Audax Private Equity

Fri, 20 Mar 2026 19:11:52 GMT

Grant Thornton Stax congratulates AKAM, a leading provider of property management serving both residential and commercial properties, on its recent acquisition by Audax Private Equity . We are proud to have supported AKAM, a former Nautic Partners portfolio company, on the sell-side, working closely with its management team and investment bank, William Blair, throughout this successful transaction.

AKAM leads the property management and brokerage sectors by prioritizing both its people and the properties they serve. Leveraging decades of experience in the New York and Florida markets, the company continues to scale nationwide, delivering a service-oriented experience and superior operational standards to create flourishing mixed-use communities.

Contact the Grant Thornton Stax team to learn more:

Tyler Veit

Roy Lockhart

Partner

Will Barden

Roy Lockhart

Partner

About Grant Thornton Stax

Investing in Cyber Compliance—The Multi-Billion Dollar Industry of Cyber Assurance

Fri, 20 Mar 2026 13:25:45 GMT

Owen Tindle

Managing Director

Sam McCabe

Director

Name

Position

Name

Position

Name

Position

Executive Summary:

Cyber compliance is a fast-growing sector focused on helping organizations prove they meet cybersecurity and data protection standards as digital risk and complexity increase. Rising regulatory, contractual, and stakeholder pressures are driving widespread adoption across industries, reinforced by supply chain requirements. Achieving compliance requires ongoing investment across advisory, audit, and technology solutions, creating a large recurring spend base. For investors, the opportunity spans multiple segments, with value driven by positioning within the compliance lifecycle and alignment to in-demand frameworks.

Meet the Experts:

Owen Tindle

Managing Director

Sam McCabe

Director

What is Cyber Compliance?

Cyber compliance is an organization’s ability to prove it meets established standards for cybersecurity and data protection, typically through third party audits or attestations against frameworks such as SOC 2 Type II , ISO 27001 , HITRUST , CMMC, or emerging standards like ISO 42001 for AI systems.

Modern organizations manage exponentially growing volumes of sensitive data and rely on a sprawling ecosystem of vendors, platforms, and service providers. Even small businesses often integrate with dozens of external systems. This expanding digital footprint creates two primary vectors of risk:

Data exfiltration through insecure systems or data flows
Unauthorized access to core technology via third party vulnerabilities

Cyber compliance sits at the center of operational resilience , third party risk management , data governance , and increasingly, AI responsibility .

It establishes a structured, auditable way to demonstrate that data and systems are protected—both within an organization and across its supply chain.

For investors, the software and services enabling this assurance have become a fast-growing, multibillion-dollar ecosystem. Adoption is accelerating across industries, expanding the landscape of attractive and differentiated opportunities.

Catalysts for Change

The era of implicit trust in cybersecurity is over. Self attestation is now widely viewed as inadequate , and stakeholders from enterprise customers and regulators to boards and investors are demanding verifiable proof of security posture .

Regulatory regimes such as HIPAA, GDPR, and CCPA impose significant penalties for security failures, yet most offer minimal prescriptive guidance on how to maintain compliance. As a result, many organizations only discover gaps in their posture after a breach or an enforcement action.

Conversely, platforms like CMMC, FedRAMP mandate intensive, prescriptive controls which can cost millions of dollars to certify and maintain.

Proactively demonstrating posture is often burdensome. Organizations may be required to complete hundreds of control checks , navigate 500 line spreadsheet questionnaires , undergo site visits and interviews , or pursue formal third-party certifications to validate their resilience.

[Additional Context: The U.S. Department of Defense’s CMMC 2.0 program emerged after audits revealed major discrepancies between contractors’ self‑attested compliance and their actual security posture, despite most existing control requirements being in place for years. The updated model now requires ~82,000 organizations handling mid‑ or high‑risk sensitive defense data (roughly 40% of the Defense Industrial Base) to obtain recurring third‑party certifications—representing tens of billions of dollars in projected economic impact.]

Cyber compliance frameworks codify best practices through hundreds of individual controls that address not only network or software security, but also physical safeguards, policy rigor, operational resilience, and vendor related risk. Together, these controls define what “good” looks like for an in-scope environment.

A broad mix of standards and regulatory drivers shape the landscape:

General-purpose standards: SOC 2 Type II and ISO 27001
Industry-specific frameworks:  HITRUST (healthcare), CMMC (defense), FedRAMP (federal government)
Situational standards : PCI DSS (payment environments), ISO 42001 (AI systems)
Non-prescriptive Regulations: HIPAA, GDPR

A Growing Cross-Industry Imperative

While early adoption was concentrated in technology sectors such as SaaS and IaaS, cyber compliance is now accelerating across nearly every industry that handles sensitive data or depends on complex vendor ecosystems.

The remaining addressable market is both substantial and expanding , as B2B services, manufacturing, healthcare, defense, and other sectors adopt compliance frameworks to satisfy rising customer and regulatory demands. This momentum is driven by three reinforcing forces:

Rising Inherent Risk: Attack surfaces continue to expand, and both the frequency and severity of cyber incidents are increasing.
Growing External Pressures: Cyber insurance incentives, contractual mandates, and regulatory scrutiny are pushing organizations to provide verifiable proof of security posture.
Structural Network Effects : Compliance requirements cascade through supply chains; once a company certifies, it often expects its vendors and partners to meet the same standards, amplifying adoption .

[Additional Context: ISO 27001 has become the defacto global generalist standard for demonstrating security posture, with tens of thousands of certified organizations worldwide. In the U.S., SOC 2 Type II dominates, with similarly large volumes of attestations but limited adoption internationally. Beyond these, more than a dozen additional frameworks play material roles, with a long tail of specialized or regional standards.]

General-purpose standards: SOC 2 Type II and ISO 27001
Industry-specific frameworks:   HITRUST (healthcare), CMMC (defense), FedRAMP (federal government)
Situational standards : PCI DSS (payment environments), ISO 42001 (AI systems)
Non-prescriptive Regulations HIPAA, GDPR

A Growing Cross-Industry Imperative

Rising Inherent Risk: Attack surfaces continue to expand, and both the frequency and severity of cyber incidents are increasing.
Growing External Pressures: Cyber insurance incentives, contractual mandates, and regulatory scrutiny are pushing organizations to provide verifiable proof of security posture
Structural Network Effects : Compliance requirements cascade through supply chains; once a company certifies, it often expects its vendors and partners to meet the same standards, amplifying adoption .

Framework Adoption Triggers Significant Spend

Cyber compliance is a multi-phase process that drives substantial investment across software and services.

The journey to certification or attestation typically includes 3 main phases:

Pre‑audit preparation: The most resource‑intensive stage, often requiring advisory support for gap assessments, control mapping, remediation, and readiness activities. Depending on framework complexity, this phase can span from a few months to well over a year.
Audit execution: Formal certification or attestation by accredited third‑party assessors.
Post‑audit maintenance & Re-audit : Ongoing evidence collection, continuous monitoring (e.g., ConMon), reacting to business or framework changes (e.g., in-scope M&A), and periodic recertification to maintain compliance over time.

Total spend varies widely by framework and organizational complexity. A small company pursuing SOC 2 may invest $10K or less, while programs such as FedRAMP or CMMC can reach multi‑million‑dollar scale due to intensive advisory support, engineering effort, and specialized infrastructure requirements (e.g., GCC High environments).

Spending is typically front‑loaded, with the bulk of year‑one investment directed toward advisory and remediation work. However, recurring spend persists through annual or semiannual re‑audits, continuous monitoring, and ongoing technology needs. Software and tooling, particularly compliance automation, evidence management, and monitoring platforms, tend to represent recurring, multi‑year expenses.

A Variety of “Ways to Play”

From an investment perspective, the cyber compliance ecosystem offers a broad range of entry points, with meaningful opportunities across services and technology. Key segments include:

Advisory-focused services : Typically front-loaded, project-based spend, with some ongoing needs (e.g., continuous monitoring, program/infrastructure changes at re-audit cycles).
Audit-focused services : Typically regular/re-ocurring, but lower levels of spend relative to advisory.
Diverse set of supporting technology : Mix of compliance automation (on both the client side, and auditor side), TPRM and traditional GRC tools, and other supporting technology often needed throughout the compliance lifecycle.

Many companies offer a mix of advisory and audit services, though most index toward one or the other. Coalfire, Summit7, and ControlCase traditionally emphasize pre/post-audit advisory, while A-LIGN, Prescient, and Insight Assurance lean toward audit services.

Key Diligence Questions

Evaluating a cyber compliance asset requires a precise understanding of its positioning, market exposure, and structural advantages:

1. Define & understand the Target company's offering & alignment :

Revenue potential, addressable market, and growth trajectory, and ultimate value creation levers depend heavily on where the company sits in the compliance value chain and which frameworks it supports:

What are the core / critical offerings are companies use from The Target?
What frameworks / certifications, and thus market segments is The Target best aligned to?
Which stages of the compliance journey does the company materially participate in (pre‑audit, audit, post‑audit)?

2. What are the revenue dynamics and pools we are exposed to as a result of our offering?

Various products, and frameworks have varied magnitudes of spend, spend curve shapes, and cadences and degrees of ‘re-occurrence’.

3. What is the corresponding market opportunity, and health based on our offering positioning?

Identifying the potentially addressable markets based on framework exposure, and other dynamics, is challenging but critical. Framework alignment is typically not defined along standard industry lines, but the prevalence of various characteristics (e.g., handling payment card data for PCI, selling products, tech, or services into the defense primes or subs for CMMC). Each framework and market niche has unique maturity levels, adoption velocities, and competitive intensity (e.g., ISO maturing rapidly in the U.S., PCI more mature globally, ISO 42001 and CMMC still nascent).

4. What defines our right-to-win in the markets we serve?

Audit-based services are heavily reliant on strong top-of-funnel (e.g., via partnerships with platforms like Vanta/Drata), while advisory partners rely on deep demonstrated subject-matter expertise, especially in complex implementations (e.g., FedRAMP, CMMC). Commoditization in certain market segments (e.g., workflow automation tech, lowest-end SOC II audits) can threaten to re-shuffle vendor positioning over the mid-term.

5. How strong is our commercial & GTM engine, truly?

Voice-of-customer/voice-of-partner research to establish and benchmark reputation, and delivery performance against key customer criteria are critical. Many companies across cyber compliance markets are currently ‘drinking from a firehose’. Performance benchmarking helps to define who is likely to remain successful as supply and demand trend closer towards equilibrium. Especially important in certain high-growth markets (e.g., CMMC).

6. What are the value creation levers we have access to based on our offering?

Cross-sell can be an attractive lever, and there is meaningful potential for accretive M&A for companies that clearly define their core competencies and offering set. These are shaped heavily by the nature of customer relationships and aligned markets (e.g., audit vs advisory, specific frameworks). There is no universal offering model, and many companies are still working to prove out effective and synergistic offering combinations. Assessing customer spend patterns, and appetite for ongoing or adjacent offerings is key.

7. How exposed are we to AI-driven market expansion vs. AI-driven commoditization?

AI is expanding compliance demand by introducing new risks and assurance surfaces (e.g., via ISO 42001), while simultaneously automating portions of readiness, evidence collection, and workflow execution. It’s key to understand whether the Target is positioned to capture incremental AI-driven spend, and to what extent AI is likely to erode differentiation or compress value/revenue capture in its core offerings.

Conclusion

Grant Thornton Stax’s cybersecurity and business services teams have supported more than 10 cyber compliance transactions over the past few years , including several of the sector’s most notable deals (A-LIGN, CyberSheath, HITRUST). If you’re evaluating a potential acquisition, exploring strategic growth opportunities, or preparing for a capital raise in this rapidly expanding market, let’s talk .

Reach out to Owen Tindle ( otindle@stax.com ) or Sam McCabe ( smccabe@stax.com ) to learn more.

Grant Thornton Stax Advises Blackstone on its Strategic Investment in Champions Group, a Leading Multi-brand Platform in the Residential Services Market

Thu, 19 Mar 2026 19:22:58 GMT

Grant Thornton Stax congratulates Blackstone on its recent acquisition of Champions Group , a leading provider of essential home services, specializing in heating, air conditioning, plumbing, and electrical solutions. We are proud to have supported Blackstone with our investment advisory services in this successful transaction.

Champions Group is a prominent residential services platform serving the home repair and replacement market. The company operates a scaled, integrated model across major metropolitan areas, supported by more than 1,800 field technicians and approximately 150,000 active members. Its differentiated go-to-market strategy is centered on a membership-based model and a strong commitment to consistent, high-quality customer service.

Headquartered in Orange County, California, Champions Group provides essential home services with a focus on HVAC, plumbing, and electrical solutions. The company emphasizes building lasting customer relationships by delivering responsive, reliable service across a broad range of heating, cooling, plumbing, and electrical offerings.

Contact the Grant Thornton Stax team to learn more:

Tyler Veit

Roy Lockhart

Partner

Sameer Tejani

Managing Director

About Grant Thornton Stax

Grant Thornton Stax Provides Sell-side Support to Axcel Learning on its Acquisition by Inverness Graham

Tue, 17 Mar 2026 15:24:11 GMT

Grant Thornton Stax congratulates Axcel Learning , a leading online professional education, certification, and test preparation platform, on its recent acquisition by Inverness Graham . We are proud to have supported Axcel Learning on the sell-side, working closely with its management team and investment bank, Houlihan Lokey, throughout this successful transaction.

Axcel Learning (“Axcel”) is a leading provider of online professional education, certification, and test preparation, focused on industries where credentialing is essential for career advancement.

Established in 2021, Axcel has rapidly grown into a scaled platform comprising five recognized digital learning brands. Its differentiated model—combining on-demand content, live virtual instruction, and AI-enabled personalization—supports strong exam outcomes across key certifications. Through its proprietary content and integrated platform, Axcel helps address workforce shortages and evolving regulatory requirements in several high-growth sectors. To date, the company has supported more than 2 million learners and offers a library of over 11,000 hours of original educational content.

Contact the Grant Thornton Stax team to learn more:

Robert Lytle

Roy Lockhart

Partner

Tyler Veit

Partner

Chen Liu

Partner

Miriam El-Baz

Managing Director

About Grant Thornton Stax

The Strategic Risk System: How ESG, SCRM, EHS, and GRC Are Converging

Fri, 13 Mar 2026 16:03:14 GMT

Anuj A. Shah

Partner

Andrew Keller

Managing Director

Owen Tindle

Managing Director

Marissa Licursi

Director

Name

Position

Name

Position

Name

Position

Executive Summary:

Deal activity across Supply Chain Risk Management (SCRM), Environmental Health and Safety (EHS), Environmental, Social, and Governance (ESG), and Governance, Risk, and Compliance (GRC) platforms reflects a broader shift in how enterprises oversee strategic risk. Software categories that once operated independently are increasingly aligning around a shared mandate: providing enterprises with structured and defensible oversight of third-party relationships and operational exposure across suppliers, sites, and geographies.

Key observations from recent transactions and diligences include:

Diligence priorities are converging. Sponsors consistently evaluate system-of-record credibility, workflow depth, switching costs, and budget ownership across these segments.
Governance is emerging as the integrating framework. SCRM, EHS, and GRC platforms are expanding into adjacent risk domains, with third-party risk linking operational execution and enterprise oversight.
Durability is defined by operational and financial relevance. Platforms embedded in inspections, audits, and corrective action workflows, with measurable cost savings and recurring service engagement, demonstrate stronger retention and expansion characteristics.
AI integration is beginning to drive efficiency. Automation in document review, anomaly detection, and workflow routing reduces administrative burden and accelerates remediation, with direct implications for cost control and margin performance.

Taken together, these developments suggest that risk oversight is becoming more centralized and system driven. Platforms aligned with this trajectory are increasingly positioned as core components of enterprise risk management rather than discrete compliance tools.

Convergence Around Strategic Risk

Recent transactions across SCRM, EHS, ESG, and GRC platforms highlight a clear shift in investor focus. Sponsors are evaluating assets that span supply chain oversight, operational safety, third-party risk, and enterprise governance within the same investment thesis. That shift is reflected in diligence priorities, which are increasingly aligned across processes that were once evaluated separately.

Investors want to evaluate whether platforms function as authoritative systems of record, how deeply they are embedded in inspection and remediation workflows, and how dependent customers are on the data and controls they provide. These questions naturally extend to financial durability, which is why budget ownership and revenue resilience now receive scrutiny alongside product scope.

Convergence is also becoming visible at the product level. Platforms rooted in supply chain oversight are incorporating governance workflows and regulatory reporting capabilities. At the same time, established GRC systems are expanding into supplier and operational risk use cases, while EHS platforms are broadening their scope toward enterprise-wide compliance visibility. As a result, buying centers increasingly overlap, often bringing together supply chain, compliance, legal, and operations leadership within the same mandate.

Third-party risk management has emerged as a central organizing theme within this convergence. Supplier performance, traceability, corrective action processes, and documentation requirements connect governance expectations with operational execution. These linkages have become more important as regulatory complexity and reputational exposure persist, prompting enterprises to seek more consistent oversight across suppliers, facilities, and geographies.

The market is therefore realigning around a common objective: disciplined management of strategic risk. In that environment, platforms are increasingly evaluated based on their contribution to enterprise-wide oversight rather than their original category label.

What Makes These Platforms Durable

As these categories converge, differentiation depends less on software classification and more on operating characteristics that support financial resilience.

Workflow depth is foundational. Platforms embedded in inspections, audits, corrective action processes, and traceability routines create operational reliance within customer organizations. When removal would disrupt core processes, switching costs increase, strengthening retention profiles and improving revenue visibility.

System-of-record credibility further reinforces defensibility. Platforms that house authoritative supplier data, remediation histories, certifications, and audit documentation become central to internal oversight and external review. This position increases customer dependence on the platform’s data and controls, which in turn supports pricing durability and long-term customer relationships.

Anuj A. Shah

Partner

Andrew Keller

Managing Director

Owen Tindle

Managing Director

Marissa Licursi

Director

Measurable operational economics are equally important to the investment case. Investors increasingly test whether customers can quantify reductions in inspection costs, shorter remediation timelines, improved audit preparedness, and lower defect exposure. Where these benefits are clear, platforms are more likely to maintain protected budgets, particularly when discretionary spending comes under pressure.

Ecosystem participation introduces an additional layer of durability. Platforms that engage both buyers and suppliers capture broader operational data and embed themselves within commercial relationships. When supplier-side users also derive operational benefit, the platform’s role within the ecosystem becomes more stable, reducing reliance on mandates alone.

Recurring engagement beyond license fees further strengthens revenue quality. Managed services, regulatory advisory support, audit coordination, and reporting assistance extend the platform’s role in day-to-day operations. Over time, these services increase customer lifetime value while creating opportunities to standardize delivery and improve margins.

Taken together, these characteristics translate directly into the metrics that drive valuation: retention, net revenue expansion, pricing power, and margin durability. Platforms that combine operational reliance with measurable economic impact are increasingly viewed as core risk systems rather than peripheral compliance tools.

The Direction of Travel

The forces driving convergence across these platforms are structural. Regulatory complexity remains elevated, supply chains continue to face geopolitical and operational volatility, and expectations around transparency and accountability continue to rise. Together, these pressures reinforce demand for integrated oversight that connects governance controls with operational execution.

Early market development focused primarily on standardization. Platforms digitized audits and inspections, centralized documentation, formalized corrective action workflows, and strengthened internal controls. This foundation created consistent data and governance processes.

The next phase builds on that foundation by extracting greater value from accumulated data. As inspection records, remediation histories, supplier performance metrics, and incident data scale, platforms gain the ability to identify patterns that support earlier intervention. Artificial intelligence is beginning to support this transition, assisting with document review, anomaly detection, and workflow routing while reducing administrative burden.

Investor Perspective

Evaluating AI in Strategic Risk Platforms

A common question in recent diligences is: “How is AI impacting this market?” In practice, however, that framing is too broad to produce useful insight. Artificial intelligence is not creating a new category of risk software. Instead, it is being integrated into existing SCRM, EHS, ESG, and GRC platforms to improve how risk is identified, documented, and remediated.

For investors, the more relevant question is where AI sits within the platform’s workflow and data architecture. Therefore, key diligence lenses include:

Data aggregation and normalization

How is AI used to structure large volumes of supplier documentation, inspection reports, certifications, and incident records?

Platforms that can efficiently standardize unstructured operational data across suppliers, sites, and geographies reduce onboarding friction and improve audit readiness.

Workflow efficiency and operational ROI

Does AI reduce manual effort in document review, audit preparation, and remediation tracking?

Efficiency gains that shorten inspection cycles or accelerate corrective actions translate directly into cost savings and reinforce the platform’s budget position.

Risk detection and pattern recognition

Can the platform identify emerging risk patterns across suppliers, facilities, or operating units before they escalate into operational or compliance failures?

Platforms with broader ecosystem participation often benefit from stronger data signals.

Corrective/preventative action integration (CAPA)

Is AI embedded within remediation workflows, or limited to identifying potential issues?

Platforms that connect detection with documented remediation create stronger operational dependence and clearer audit trails.

Regulatory credibility and independence

Does the platform function as an independent system of record for inspections, certifications, and remediation activity?

In many regulatory contexts, enterprises benefit from maintaining auditable oversight through a third-party platform rather than relying solely on internal systems or automated tools.

Taken together, these questions shift the focus from whether AI is present to how it improves operational execution and risk oversight. In most cases, AI increases the value of platforms that already function as systems of record and workflow engines rather than replacing them. In diligence work across these platforms, we are frequently asked to evaluate these dimensions of AI integration when assessing potential risks and value creation opportunities for investors.

Closer integration between detection and remediation can shorten escalation timelines and improve resolution consistency. When corrective pathways are embedded within governance workflows, operational teams can respond more efficiently while documenting outcomes systematically. This linkage between insight and execution is what ultimately strengthens the platform’s operational relevance.

The financial implications are direct. Automation reduces manual review hours, compresses remediation cycles, and improves audit readiness. Platforms that connect structured data with documented action therefore deepen their integration into enterprise risk oversight.

Execution discipline will ultimately determine which assets convert these capabilities into sustained financial performance.

Implications for Private Equity

For private equity investors, the convergence across ESG, SCRM, EHS, and GRC platforms signals a broader strategic risk opportunity. As enterprises consolidate oversight of third-party and operational exposure, platforms that align governance controls with workflow execution are moving closer to the center of enterprise risk management.

In this environment, investment evaluation increasingly prioritizes operational integration over category positioning. Assets embedded in daily processes and supported by protected budgets are more likely to sustain revenue through regulatory cycles.

Ecosystem breadth and recurring engagement models further influence long-term value creation. Platforms that engage multiple stakeholders while layering in managed services can expand revenue per account and reinforce customer reliance. When service delivery becomes standardized and automated, these models can also support margin expansion.

Product strategy therefore becomes central to long-term differentiation. Investments in data interoperability, workflow intelligence, and automation are increasingly tied to efficiency gains and retention durability. Execution discipline will separate platforms that simply accumulate data from those that convert it into measurable economic advantage.

As oversight becomes more integrated, consolidation across adjacent risk domains may accelerate. Platforms aligned with this strategic risk trajectory are therefore positioned to capture differentiated growth and defensibility within a maturing software landscape.

Grant Thornton Stax Advises FFL Partners on Creation of Pioneer HOA

Thu, 12 Mar 2026 20:08:37 GMT

Grant Thornton Stax congratulates FFL Partners on the launch of Pioneer HOA , a newly formed holding company for its current and future investments in homeowner association (HOA) property management businesses. We are pleased to have supported FFL Partners with our investment advisory services.

The HOA property management market remains highly fragmented and in the early stages of consolidation, with approximately 9,500 management companies operating across the US. These firms serve more than 370,000 associations, representing over 40 million households and an estimated $11 trillion in property value.

Contact the Grant Thornton Stax team to learn more:

Tyler Veit

Partner

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3 Takeaways from Expo West 2026: What Investors Should Watch in Natural & Better-For-You CPG

Thu, 12 Mar 2026 20:03:39 GMT

Natural Products Expo West continues to serve as a key signal for emerging trends across the natural and better-for-you consumer goods landscape . The 2026 conference showcased continued product innovation and strong brand experimentation but also reflected a more measured tone among investors and operators navigating macroeconomic uncertainty.

While the industry continues to search for its next major growth engine, several themes surfaced consistently across the show floor and conference programming. Together, they highlight where consumer demand and potential investment interest may concentrate in the coming years.

Below are three key takeaways from Expo West 2026:

1. Fiber Is Emerging as the Next Narrative in Functional F&B

A recurring theme throughout Expo West was the continued rise of fiber as “the new protein.”

Underlying fundamentals are compelling. Approximately 90% of Americans fail to meet their recommended daily fiber intake, creating a large structural consumption gap. At the same time, fiber aligns closely with several consumer health priorities including gut health, satiety, blood sugar control, and weight management.

This dynamic mirrors early signals observed during the rise of protein, which has since expanded across virtually every food and beverage category (from snacks to beverages to pantry staples).

The key question now is where fiber will see meaningful category penetration first. Product development is occurring across several formats, ranging from functional beverages to snack products, as well as supplements/gummies.

Brand dynamics will also be important to watch. Incumbents with existing functional positioning such as prebiotic soda brands may have an advantage in amplifying fiber messaging. At the same time, the trend may create room for new entrants built specifically around fiber-forward positioning, continuing the better-for-you beverage category’s trend towards market fragmentation.

2. Clean Labels: From Differentiator to Expectation

Ingredient simplicity was another dominant theme across the show floor. Brands emphasizing short, recognizable ingredient lists and minimally processed formulations continue to resonate strongly with consumers.

Notably, several industry participants framed this trend not solely as a health-driven decision, but increasingly as a matter of consumer convenience and trust. Shoppers are gravitating toward products that are easier to understand where ingredient lists require minimal interpretation or research.

As a result, clean label positioning appears to be evolving from a point of differentiation to a baseline expectation within the natural and premium grocery ecosystem.

This shift is influencing innovation across several areas:

Reformulation to eliminate complex additives.
Increased reliance on whole or minimally processed ingredients.
Greater emphasis on transparency and ingredient storytelling.

For investors evaluating emerging brands, clean labels are increasingly becoming a baseline. Brands that combine ingredient simplicity with compelling functional or taste propositions are better positioned for scale.

3. New Niches Continue to Develop Across the Better-For-You Landscape

Expo West also highlighted the degree to which innovation within natural CPG continues to occur through highly specialized niches.

Two themes were particularly visible on the exhibition floor:

Traditional Cooking Fats Are Reappearing in Packaged Foods

Several emerging snack brands featured products cooked in traditional fats such as beef tallow, reflecting a broader movement toward ingredient minimalism and “ancestral” food narratives.

The positioning aligns closely with consumer concerns around ultra-processed ingredients and seed oils. Tallow is often framed as:

Minimally processed
Historically rooted in traditional cooking practices
Compatible with clean label positioning

Select brands have already secured distribution within natural grocery channels such as Sprouts and Whole Foods, although the long-term durability of the trend remains uncertain given ongoing debates around cardiovascular health.

Ingestible Beauty Continues to Expand

Another niche gaining visibility is ingestible beauty, particularly beverages and supplements infused with collagen or other ingredients intended to support skin health.

These products reflect a growing convergence between beauty, wellness, and functional nutrition. Beverage formats appear especially well suited to this trend, offering a convenient delivery mechanism for ingredients traditionally associated with supplements.

While still early in its lifecycle, ingestible beauty demonstrates how category boundaries within consumer products continue to blur, creating opportunities for innovation across adjacent sectors.

A More Selective Investment Environment

Despite the visible innovation at Expo West, broader market sentiment remains cautious. A slower than anticipated pace of food and beverage deal activity in 2025 has translated into more grounded expectations for 2026.

Deals are continuing to occur, but largely within select categories and differentiated brands aligned with durable consumer trends, including functional nutrition, clean label products, and wellness-adjacent innovation.

Anantha Natalegawa

Managing Director

Sameer Tejani

Managing Director

Samantha Pinkes

Director

Grant Thornton Stax Advises Trinity Hunt Partners on its Investment in Berger Consulting Group

Thu, 05 Mar 2026 18:04:56 GMT

Grant Thornton Stax congratulates Trinity Hunt Partners on its investment in Berger Consulting Group , which marks the launch of its new economic consulting and dispute advisory platform. The platform will focus on growing capabilities in economic damages analysis, forensic accounting, and valuation services. It expands Trinity Hunt’s presence in legal services through a buy-and-build strategy.

Founded in 2013, Berger Consulting Group specializes in economic analysis and damages assessment for law firms handling labor and employment disputes, primarily in California. Serving more than 100 clients, the firm combines rigorous, data-driven insights with deep subject matter expertise to deliver high-quality results.

The firm is widely recognized for its capabilities in expert testimony, economic modeling, and damages quantification, with a strong reputation built on both technical excellence and a high standard of client service.

Contact the Grant Thornton Stax team to learn more:

Palash Misra

Roy Lockhart

Partner

Tyler Veit

Partner

Yevgeniy Volodin

Director

Position

About Grant Thornton Stax

Kelsey Chisholm Named Among The Consulting Report’s Top 25 Women Leaders in Consulting for 2026

Wed, 25 Feb 2026 21:00:05 GMT

Robert Lytle

Senior Managing Director

Phil Dunne

Managing Director

Kelsey Ch isholm

Partner

The Consulting Report is pleased to announce The Top 25 Women Leaders in Consulting for 2026 . With the U.S. management consulting market now nearing $400 billion, consulting has become one of the clearest signals of what organizations are struggling to execute on their own. The women recognized this year lead the teams brought in to impose order, make decisions usable, and carry initiatives through the messy middle where most efforts stall.

The leaders on this list represent the breadth of the profession’s hardest assignments. Their work covers public-sector modernization, operating-model redesign, deal and restructuring support, expert analysis under regulatory and legal scrutiny, and the practical application of analytics and AI in decision-making. Just as important, many of these leaders shape who gets to lead next. Inside their firms and on client teams, they sponsor women into stretch roles and back them when stakes are highest. Most of all, they help their firms earn trust where it’s tested.

Among this year’s awardees, Heather Stockton, Global Consulting Services leader at Deloitte, is recognized for overseeing the firm’s Technology & Transformation business across technology, engineering, AI, cyber, customer, and human capital, and for advising senior executives—particularly in financial services—through leadership transitions and large technology-enabled transformation programs. Regina Mayor, Global Head of Clients & Markets at KPMG International, draws on more than 30 years of client-facing experience delivering large-scale business and technology change and is widely regarded as a thought leader on business transformation and ESG-related issues.

Sherina Ebrahim, Senior Partner at McKinsey & Company and chair of the firm’s Risk, Audit and Governance Committee on its Shareholders Council, is known for guiding consumer goods and medical device companies on growth strategy, sales and marketing transformation, enterprise agility, and post-merger integration.

This year’s awardees were selected through a methodical nomination process and careful consideration of each candidate’s career track record and industry contributions. Please join us in celebrating The Top 25 Women Leaders in Consulting for 2026.

Kelsey Chisholm

Partner

A Recap: Investing in Pharma Technology

Tue, 17 Feb 2026 15:18:48 GMT

Grant Thornton Stax recently partnered with Raymond James for a healthcare-focused breakfast discussion centered on PE investment opportunities in pharma technology. The session brought together investors to explore where capital is flowing across the drug development lifecycle and how to evaluate scalable, tech-enabled platforms in a market that continues to evolve.

The central theme of the discussion was the continued investor interest in outsourced pharma tech and services, which ranked among the top areas of thematic focus in our recent survey of 200 mid-market and large-cap investors. Attendees discussed how technology is becoming increasingly embedded throughout preclinical development, clinical trials, the regulatory approval process, and commercialization.

Thematic areas of focus included AI-enabled discovery tools and lab automation in early R&D, site-focused clinical trial infrastructure, digital supply chain and regulatory platforms, and commercialization software targeting HCPs.

Grant Thornton Stax and Raymond James covered:

Where AI is disruptive and can be an opportunity in pharma drug development
How regulatory pressure may be impacting pharma marketing spend
How changes to the Veeva and Salesforce relationship can guide investors for areas of opportunity
Recent valuation trends and how its impacting the current market buyside and sell-side dealmaking
Assets we expect to come to market in the near-term and later in 2026

Overall, the breakfast provided practical insights into evaluating the pharma tech investment ecosystem. With deep experience across preclinical, clinical development, and commercialization engagements, Grant Thornton Stax continues to support investors and management teams as they identify and scale high-growth platforms across the life sciences technology ecosystem.

For further discussion, we welcome you to connect with our dedicated life sciences team .

Rob Larson

Managing Director, Healthcare

Jordan Abram s

Director

Alex Despo

Managing Director, Raymond James

How AI is Reshaping Vertical SaaS

Thu, 12 Feb 2026 21:13:31 GMT

Kelsey Chisholm

Partner

Palash Misra

Partner

Name

Position

Name

Position

Name

Position

Executive Summary:

Rather than flattening vertical software, AI is driving a bifurcation between surface-layer productivity tools and core operational platforms that function as systems of record and action. As AI becomes further embedded, tools that primarily surface insights or guide workflows are increasingly vulnerable to compression. In contrast, platforms that own authoritative data, enforce governance, and coordinate real business activity grow more valuable as AI shifts from assistance to execution. Over time, these systems move from storing work to orchestrating it: consolidating integrations, payments, compliance, and accountability. The result is a market where value concentrates around platforms that own workflows, state, and trust.

Introduction

A recurring narrative, and one recently amplified by volatility in the public software markets, is that AI will “kill SaaS,” ushering in a so-called “SaaS-pocalypse.” This overstates the risk. AI is changing where value accrues within the tech stack. Some products will be displaced, while others will become more embedded in core workflows, entrenched, and difficult to replace. The result is not uniform disruption, but the vertical software landscape is getting re-sorted. The gap between mission-critical platforms and peripheral tools and point solutions is widening.

Historically, vertical SaaS functioned as a productivity layer, software that was helping businesses and their employees work faster and more efficiently. Up until recently, the employee was the operator while the software streamlined and automated segments of the workflow. Now, AI is shifting that dynamic. In certain categories, the software is not just supporting the execution, but it will perform the entire workflow autonomously.

That shift is creating a structural divide between:

Applications that enhance productivity (point solutions).
Platforms that serve as the operational backbone of the business (systems of record).

The first category is more exposed while the second becomes more differentiated and central to business operations. Over time, platforms will evolve beyond serving as the system of record to a system of action (system of record + AI agents) by combining their housed operational data with embedded AI capabilities.

What Gets Replaced vs. Becomes More Valuable

For more than a decade, vertical software has seen a steady rise in point solutions (applications designed to solve a specific business problem). These solutions are typically specialized, easy to implement, and generally cost effective. In many cases, the primary function of these solutions is to surface information or guide human action. This positioning also makes them the most vulnerable to the growing use of AI. This category includes standalone analytics layers, dashboarding tools, monitoring systems, workflow guidance products, and reconciliation and data-prep tools sitting between systems.

Kelsey Chisholm

Partner

Palash Misra

Partner

This is what AI compresses. Capabilities that were once justified as standalone increasingly become features. The more a solution lives “inside someone else’s workflow,” the more likely it is to be absorbed by the platform that owns the data and the user relationship.

In contrast, systems of record become more important. They are the layer where state, governance, accountability, and trust live, and where work is ultimately coordinated. AI models have recall, but it is probabilistic and context-dependent. AI will generate responses, not a persistent, versioned, and auditable state. Businesses, however, run on persistent state: the records, contracts, assets, and reconciliations that give operations continuity and legitimacy.

Over time, these platforms evolve from systems of record into systems of action. They no longer just store the history of work--they orchestrate and execute.

Integrations converge there. Embedded payments and financial services attach there. Institutional accountability lives there.

Software Insulation Among SMB and Mid-Market Customers

Paradoxically, the software vendors many expect to be most disrupted by AI—those serving SMBs and the mid-market—may prove to be among the most insulated. AI unquestionably lowers the cost to build software. But it raises the cost of owning software.

While AI reduces upfront development efforts, it shifts ongoing responsibility onto the operator: maintaining workflows, managing model behavior, adapting to regulatory change, and ensuring auditability and compliance. These costs compound overtime. Vendors can amortize that responsibility across thousands of customers. Individual businesses cannot.

This dynamic is especially true for systems of record and systems of action. AI may lower the cost of building tools and automations at the edges, but maintaining a platform that stores authoritative data, enforces contracts, reconciles finances, and governs workflows is not a one-time build, it is an ongoing operational commitment.

What Else Is Poised to Change

As AI bifurcates vertical SaaS, we expect implications around pricing, product structure, and market structure.

Seat Based Pricing Will Come Under Pressure : As AI increases operator leverage, fewer users generate the same output. When one employee, augmented by agents, can do the work of three, seat-based pricing compresses, even if the product remains essential. The risk is not churn but pricing pressure. Pricing therefore shifts toward outcomes and consumption, and hybrid models will emerge, with value, not seats, as the anchor.

Consolidation Accelerates: Point solutions that once justified standalone SKUs become features inside broader platforms. As AI reduces the marginal cost of adding functionality, depth concentrates within fewer systems.

Systems of Action Become More Embedded: As systems of record evolve into systems of action, switching costs increase. These platforms become the natural convergence point for integrations, embedded payments, financing, compliance tooling, and other adjacent services. The more operational responsibility they absorb, the harder they are to replace.

Implications for Vertical SaaS Diligence

A central diligence question is whether AI creates existential risk or additive opportunity for a given platform. The task is not to assess current AI features, but to understand how the industry’s tech stack will be reshaped over the next two to three years as AI matures. The key question is: Does AI make the platform more central or more optional ? This reframes how assets should be evaluated and underwritten.

Key Dimensions to Assess:

1. Workflow breadth

Ownership matters more than feature depth. Is this an end-to-end system of record or a narrow point solution living inside someone else’s workflow?

2. Output replaceability

Does the product execute transactions and coordinate work, or primarily generate text, insights, recommendations, or analysis that AI can replicate?

3. Proprietary data

Control of longitudinal, auditable, compounding data drives defensibility. Does the platform own meaningful state, or operate on interchangeable inputs?

4. Competitive landscape

AI expands the universe of substitutes. Risk may come less from direct competitors and more from adjacent platforms, horizontal incumbents, or embedded AI features.

5. Pricing durability

Is revenue anchored to outcomes and value flow, or exposed to seat compression? Can pricing migrate as operator leverage increases?

6. TAM elasticity

If AI doubles productivity, does demand expand with throughput or shrink with fewer required users?

Ultimately, AI is a structural reset. It will compress shallow layers and concentrate value in platforms that own workflows, state, and trust. Vertical SaaS that evolves into a system of action becomes more defensible, not less. The question is no longer who has AI, but who still matters when AI is everywhere.

Vault Top 50: Four Years Running

Wed, 11 Feb 2026 14:52:55 GMT

For the fourth year in a row, Grant Thornton Stax has been recognized on Vault’s Consulting Top 50 list of the best firms to work for in North America—ranking #18 overall—along with placements among the Top Boutique Consulting Firms and on Vault’s EMEA list.

This recognition reflects what continues to set us apart: a culture built around our people. Based entirely on employee feedback, the results underscore the experience our teams create every day—one grounded in collaboration, opportunity, and support. And as part of Grant Thornton, we’re building on that foundation with expanded growth, broader capabilities, and even more career paths for our people across the deal lifecycle.

At Grant Thornton Stax, our mission is to foster an environment where talented people from all backgrounds feel valued, supported, and empowered to do their best work. Diverse perspectives strengthen our work and drive the insights we deliver. We’re grateful to our employees, this recognition is a reflection of their talent and contributions.

Let us hear what Grant Thornton Stax team members have to say about the firm:

Firm Culture

“Stax has a very strong mentoring culture, which becomes stronger as folks progress into team leadership roles. Great promotion culture where we focus more on capacity to fulfil the next role vs. business need.”
“A results-oriented culture allows team members to manage their time in a way that works best for them, as long as client needs and project deadlines are met.”

Quality of Life

“Overall, the quality of life at the firm is very strong. The culture is respectful of personal time, and while client demands can create busy periods, the hours are generally sustainable and predictable. Travel requirements are reasonable, with flexibility to balance in-person and remote work. Taking time off is straightforward and encouraged; leadership sets a positive tone in supporting people to fully disconnect when they’re away.”
“The hybrid work model adds flexibility, and teams are respectful of boundaries outside of peak project periods.”

Career Development

“One of the strongest aspects of our career development model is the clarity and fairness of the promotion process. Expectations are well-defined, performance is evaluated consistently, and we make a point of recognizing merit over tenure, which creates a culture of accountability and opportunity.”
“Training and mentorship are core strengths. We combine structured learning, including onboarding, skills-based training, and leadership development programs, with extensive on-the-job learning and informal coaching. Because project teams are lean and collaborative, junior and mid-level team members work closely with senior leadership, gaining direct exposure to strategic thinking and client engagement approaches.”

Compensation

“Training and mentorship are core strengths. We combine structured learning, including onboarding, skills-based training, and leadership development programs, with extensive on-the-job learning and informal coaching. Because project teams are lean and collaborative, junior and mid-level team members work closely with senior leadership, gaining direct exposure to strategic thinking and client engagement approaches.”

Business Outlook

“The recent integration with Grant Thornton has created meaningful opportunities for growth, scale, and cross-collaboration, positioning the firm to compete more effectively against larger consultancies.”
“The firm has built a reputation for delivering actionable, data-driven insights that directly influence high-stakes investment decisions. That credibility, combined with long-standing client relationships, has positioned Stax as a trusted advisor to many of the world’s leading private equity firms.”

Why Grant Thornton Stax?

Good people, interesting work, immediate client-facing opportunities, and room to grow based on the merits of your work. Whether you have experience working at large consulting firms or more of a boutique consulting background, learn what unique opportunities Grant Thornton Stax offers: fast-paced learning and accelerated career development, direct access to leadership, top-notch offshore research and analytics support, and work-life balance that is more sustainable.

Grant Thornton Stax Advises Alma on its Acquisition by Spring Health

Tue, 03 Feb 2026 14:49:29 GMT

Grant Thornton Stax congratulates Alma , a membership-based platform that helps independent mental health clinicians accept insurance and build thriving private practices, on its recent acquisition by Spring Health , a leading global mental health platform for employers and health plans. We are proud to have supported Alma and its equity sponsor, Insight Partners, with investment advisory on this successful transaction.

Alma is focused on expanding access to affordable, high-quality mental health care by equipping providers with the resources needed to operate successful, insurance-based private practices. Through its membership platform, Alma streamlines key administrative and practice management functions—such as insurance participation, billing, scheduling, referrals, and professional development—allowing clinicians to spend more time delivering care. The platform supports providers in serving over 120 million covered lives through agreements with major national insurers and regional health plans.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Lead

Chen Liu

Partner

Dan Chen

Director

About Grant Thornton Stax

Grant Thornton Stax Announces Winter 2026 Promotions

Fri, 30 Jan 2026 20:22:22 GMT

Grant Thornton Stax is proud to celebrate the Winter 2026 promotions of 30 exceptional team members across our global offices. These promotions reflect their outstanding dedication and highlight our ongoing commitment to nurturing and investing in our people. As we continue to grow rapidly , especially as part of Grant Thornton US, it's important to recognize that our strength lies in our people. We remain dedicated to fostering rapid learning and providing significant opportunities for career growth.

To mark this milestone, we've invited our newly promoted team members to share their experiences at Grant Thornton Stax, including how the firm has supported their development and what makes Grant Thornton Stax unique within the consulting industry. Exploring "Why Grant Thornton Stax?" helps us fulfill our promise to our employees and effectively communicate to prospective candidates the distinctive advantages of working at a specialized, high-growth consulting firm that is now part of Grant Thornton US.

Promoted to Consultant

Anthony Krcik

How has working at a firm like Grant Thornton Stax provided you with increased opportunities and access to the senior team?

"Working at Grant Thornton Stax has allowed me to work in teams where more experienced seniors are deeply involved. As an associate consultant you have an opportunity to present your findings to MDs and partners almost daily."

Ryan Lalli

Mike Morrison

Abdullah Muhammad

What would you tell prospective candidates about why they should consider joining Grant Thornton Stax?

"I would tell prospective candidates to consider Grant Thornton Stax if they want to stay busy, be truly hands-on, and learn consulting from the ground up. You’re given real responsibility early on, with regular opportunities to work directly on complex analyses and primary research, and over time you develop into a strong, well-rounded consultant helping some of the world’s leading private equity firms make critical investment decisions."

John Panos

What would you tell prospective candidates about why they should consider joining Grant Thornton Stax?

"Grant Thornton Stax offers the ability to experience a variety of different end-markets during projects. It allows consultants over time to identify verticals in which they are most interested in. Additionally, we have a wonderful group of people here who help and lift each other up and good culture. All of these in tandem make for a very supportive work environment."

Promoted to Senior Consultant

Finn Green

Can you share your experience working across different industries and project types at Grant Thornton Stax?

"Working at Grant Thornton Stax has provided great opportunities to work across a broad range of industries and build a wider perspective on the US and global economy. The opportunity to build an understanding of these markets, from widely-used consumer products to complex industrial machinery and specialized software tools has been one of the best parts of working here."

Morgan Wight

Can you share your experience working across different industries and project types at Grant Thornton Stax?

"One of the most valuable aspects of my time at Grant Thornton Stax has been the breadth of industries and project types I’ve worked across, ranging from consumer to industrials and healthcare. Deep dives into highly niche areas have given me a stronger understanding of how different industries operate, broadened my perspective on the overall business landscape, and helped me clarify where my interests lie."

Promoted to Manager

Katie Lefebvre

In what ways has Grant Thornton Stax’s growth over the past few years allowed you to get involved in broader firm-building initiatives beyond day-to-day project work?

"One of the most fulfilling parts of my time at Grant Thornton Stax has been participating in the secondment program post-acquisition of Stax UK. I spent five months in the UK office working with European clients and collaborating with UK colleagues on integration and standardization efforts. I really enjoyed being involved in firm development beyond day-to-day project work."

Julia Lindsey

How has Grant Thornton Stax's growth over the past few years enabled you to contribute to various aspects of the company beyond your project work?

"Outside of my project work, I've had the opportunity to be involved in Grant Thornton Stax's Women's Group for nearly four years now. Watching how this group has grown (both in numbers and in the initiatives we support!) has been extremely rewarding. I'm proud of the community we've been able to create within the firm, and how all the women support and encourage one another's success."

Victoria Xu

What specific ways has Grant Thornton Stax supported your career development and opened opportunities that helped you achieve your current role?

"Grant Thornton Stax has supported my career development through a strong mentorship program that has provided guidance as I have progressed through various roles. I have also been able to get exposure to a wide range of projects, which has helped further build my skills and confidence in taking on increased responsibility."

Promoted to Director

Jordan Abrams

In what ways has Grant Thornton Stax empowered you to make a meaningful impact with clients and across the firm as you’ve grown into a leadership role?

"The firm has always encouraged me to drive my own initiatives, take a leading role with clients, and build my own relationships in an industry where relationships are everything. The impact internally and externally continues to grow as I develop, and is well-supported by our team."

Alice Dillon

From your perspective, what differentiates Grant Thornton Stax as a place to build a long-term career, particularly for experienced professionals?

"What really sets Grant Thornton Stax apart is the combination of challenging work and a development-focused culture. In particular, the mentorship model creates an environment that both supports and recognizes individual growth, with a focus on helping mentees build expertise and scale impact from their first day at Grant Thornton Stax."

Yiwei Jiang

What would you tell prospective candidates about why they should consider joining Grant Thornton Stax?

"The work at Grant Thornton Stax is consistently interesting and intellectually engaging, with exposure to complex and high-impact projects. At the same time, the people are genuinely smart yet humble, which creates a collaborative and supportive environment. It’s a place where you can learn a lot, be challenged, and enjoy working with your colleagues."

Samuel McCabe

From your experience, what sets Grant Thornton Stax apart as a place where experienced professionals can continue to grow and build a long-term career?

"Grant Thornton Stax offers an exceptional environment for rapid professional growth, with meaningful responsibility from day one. Our small‑firm model creates direct visibility across all levels of the organization, enabling teams to build trust quickly and collaborate closely with senior leaders. This structure empowers people to take increasing levels of ownership as soon as they’re ready and accelerate their careers in a way that’s both challenging and deeply rewarding."

Samantha Pinkes

From your perspective, what differentiates Grant Thornton Stax as a place to build a long-term career, particularly for experienced professionals?

"Grant Thornton Stax stands out as a place to build a long-term career because it combines the scale and credibility of a global firm with a genuinely entrepreneurial, people-first culture. For experienced professionals, there is meaningful opportunity to shape client outcomes, influence strategy, and take ownership beyond a narrow role or title. The firm invests in continuous growth through challenging engagements, collaborative teams, and leadership that values perspective and experience. Most importantly, Grant Thornton Stax fosters trust, flexibility, and long-term relationships—creating an environment where professionals can grow their careers while staying true to how they want to work and lead."

Shannon Roseen

How has Grant Thornton Stax enabled you to have a meaningful impact—both with clients and within the firm—as you’ve advanced into a leadership role?

"Grant Thornton Stax’s culture of trust and opportunity has allowed me to take on increasing responsibility, expand my skill set, and deliver meaningful impact for clients. As I’ve advanced into leadership, that same trust has enabled me to shape how work gets done with a strong focus on integrity and accuracy, while mentoring junior team members into thoughtful professionals who will continue to drive the firm forward."

Harry Thomas

From your perspective, what differentiates Grant Thornton Stax as a place to build a long-term career, particularly for experienced professionals?

"Grant Thornton Stax uniquely encourages a high degree of involvement in insights development and narrative synthesis across levels, rather than just executing workstreams. It fosters a culture that pushes people to take ownership of their own development, carving out industry and subject-matter expertise that elevate the value we provide to clients. This creates the ideal environment for experienced professionals to learn alongside knowledgeable, motivated peers and fast-track their careers in a highly meritocratic culture."

Yevgeniy Volodin

What makes Grant Thornton Stax a strong environment for experienced professionals looking to build a long-term career?

"Grant Thornton Stax is an excellent place to build a long-term career, where you are trusted with meaningful responsibility and have opportunities to shape both teams and engagement outcomes. Regular access to senior leadership, challenging work, and a collaborative culture provide an environment that supports continued growth and a rewarding career trajectory."

Sonia Zeng

How has working at a firm like Grant Thornton Stax provided you with increased opportunities and access to the senior team?

"At Grant Thornton Stax, the boutique environment offers me many opportunities to work closely with senior leaders on client engagements and internal initiatives. The culture strongly supports fresh perspectives and encourages new ideas from all levels. Having access to senior leaders who are generous with their guidance and mentorship has made the experience incredibly valuable for my growth."

Promoted to Managing Director

Anantha Natalegawa

What responsibility do Managing Directors have in building the next generation of leaders at Grant Thornton Stax, and how do you approach mentorship, sponsorship, and succession within the firm?

"It's a core, fundamental responsibility. Working with the next wave of our firm’s leaders—and contributing to their development—is a meaningful source of motivation. It’s especially rewarding to see them adopt a similar mindset: looking beyond project-by-project outcomes and investing in the long-term growth of their own team members."

Promoted to Senior Analyst (Colombo)

Vidhaan Chand

How has the culture at Stax influenced your experience and career development opportunities?

"The culture at Grant Thornton Stax has been a major driver of my growth and development. From the start, I’ve been trusted with meaningful responsibility and encouraged to take ownership of my work, while always having access to supportive mentors and collaborative teammates. There’s a strong emphasis on curiosity, continuous learning, and open feedback, which has helped me build confidence, expand my skill set, and take on increasingly complex challenges. That balance of high expectations and genuine support has played a key role in shaping both my experience and my career progression at Grant Thornton Stax."

Promoted to Lead (Colombo)

Harini Bandara

How has Stax helped your career development and progression?

"I joined Grant Thornton Stax as an intern straight out of university in December 2021 with no prior industry experience. From day one, the firm provided a welcoming and supportive environment, with colleagues always willing to share their knowledge. Over time, the team trusted me with greater responsibility and ownership. The opportunities to learn, contribute, and develop new initiatives have been central to my career progression, and Grant Thornton Stax has truly been a place where I’ve been encouraged to grow."

Sahani Rambukpitiya

How has working at Stax impacted your professional development and interaction with senior leadership?

"Working at Grant Thornton Stax has significantly accelerated my professional growth by giving me exposure to complex, high-impact work and the opportunity to take ownership early. I’ve benefited greatly from regular interaction with senior leadership, who are accessible, supportive, and open to ideas. These interactions have strengthened my confidence, and helped me develop a more strategic mindset when approaching problems and opportunities."

Promoted to Manager (Colombo)

Isuri Mendis

How has Stax's approach to training and development contributed to your current professional growth?

"Grant Thornton Stax’s approach to professional development has played a significant role in shaping my growth, both personally and professionally. I joined the firm in 2019 as a Senior Associate and, over the past six years, have grown into a Manager—reflecting a combination of structured development, expanding responsibilities across people management, operations, and strategic initiatives, and the opportunity to take on stretch roles that challenged me to think differently and grow with the business. Most importantly, Grant Thornton Stax’s leadership has consistently demonstrated trust in my capabilities and ideas, creating an environment of support, autonomy, and accountability that has empowered me to contribute meaningfully while developing as a leader."

Promoted to Delivery Manager (Colombo)

Heshan Perera

How has working with the global consulting team deepened your understanding of how your analyses impact the business?

"Joining Grant Thornton Stax has reshaped how I approach Data Science and AI. Working closely with the global consulting team has pushed me to look beyond technical solutions and focus on the underlying business problems. Seeing how data-driven insights translate into strategic decisions across diverse industries has transformed my work into impact-driven outcomes, supporting my growth both professionally and personally."

Promoted to Senior Delivery Manager (Colombo)

Ali Bawa

How has Stax's growth over the past few years enabled you to contribute to various aspects of the company beyond your project work?

"Stax and now Grant Thornton Stax's growth over the past few years has created opportunities for me to contribute well beyond day-to-day project work. Having spent nearly 10 years at the firm and grown alongside it, I’ve been able to get involved in shaping internal best practices, supporting firm-building efforts, and helping influence how we work as a team. As the platform has expanded, I’ve also had more chances to share insights across our global offices and translate individual project learnings into repeatable value for the broader firm."

Devmin Jayawardena

How has your role on the Data Science team at Stax allowed you to apply your analytical skills and gain global exposure?

"My role on the Data Science team at Grant Thornton Stax has allowed me to apply rigorous analytical thinking to complex business problems, revolving around various investment theses. Success of it however has come across from my relentless efforts poured into the intersection of people, process, and technology amidst numerous moving parts. From collaborating with cross functional and international teams to building scalable, innovative AI-driven solutions, I’ve gained exposure that goes well beyond pure analytics and ventures deep into private equity."

Operations

Freddy Amara

Consultant Desktop Support Level 3

How has the firm supported your technical growth and career progression as you’ve advanced within the IT team?

"Grant Thornton Stax has supported my technical growth and career progression as I’ve advanced within the IT team every step of the way from when I started as Level 1 to my recent promotion to Level 3. I’ve learned new technical skills and been granted responsibility to support Consulting and Operations with their business needs. I have the support of my coworkers and managers to learn and grow and stay current with recent developments in the IT industry."

Stephanie Schaber

Head of People Operations & Delivery Optimization

What aspects of the firm’s culture or leadership approach have enabled you to expand your scope and take on greater strategic responsibility?

"Our firm’s supportive, growth‑minded leadership has played a pivotal role in helping me broaden my scope and embrace more strategic responsibilities. The collaborative dynamic here—across every function—has consistently encouraged me to stretch beyond my comfort zone and pursue new opportunities. Being in this kind of environment has fueled my passion for connecting our people with the business and has given me the space to make a meaningful impact."

Allie Tillson

Head of Business & Tech Operations

Why Grant Thornton Stax?

Stax Consultant Spotlight: Chris Flynn

Fri, 30 Jan 2026 18:00:22 GMT

Chris Flynn began his journey at Grant Thornton Stax while he was an undergrad at Northeastern University. With an interest in private equity and how investors strategize , he joined our Boston office as an Associate. Now a Consultant, Chris shares his experience and insights from his tenure at Grant Thornton Stax, as well as some fun facts about himself.

Professional Background & Journey

You joined Stax as a Northeastern University co-op during your junior fall semester (July–December 2022). Can you tell us about your background at the time (your major, interests, and any hobbies outside of school)?

Stax Consultant Kate Jennings Shares Her Experience and Learnings

Before joining Stax, I was a student at Northeastern University studying economics and finance. On campus, I spent time involved in economics-focused clubs, which helped sharpen my interest in markets and problem-solving. I was also very involved in athletics, playing intramural and club sports (basketball, rugby, ultimate).

What stood out to you during your co-op experience that motivated you to apply for a full-time role at Grant Thornton Stax after graduating in January 2024?

I was first introduced to Stax when I joined as a co-op in the fall of 2022. During that time, the flat culture and the approachability of the team really stood out to me. The general culture was a place where people want to know what junior team members think, allowing me to make an impact early-on. The fit was furthered by the fact Stax does what I find interesting -- tackling more strategic, high-level questions rather than operational excellence / problem-solving.

Career Growth at Grant Thornton Stax

You were promoted from Associate Consultant to Consultant this past summer. Can you walk us through your career progression at Grant Thornton Stax, your current role, and what you’ve learned along the way?

I was promoted this last summer to Consultant after joining full-time in January 2024 as an Associate Consultant. One of the biggest things I’ve learned at Stax is client empathy. Being dropped into new industries every two to four weeks forces you to quickly figure out what truly matters to the client. Over time, I’ve learned how to ask better questions, prioritize the most important insights, and communicate clearly under tight timelines. This skill has been critical in delivering work our clients value.

In what ways has Grant Thornton Stax supported your professional growth and helped you develop the skills needed to succeed in your career so far?

Grant Thornton Stax has supported my growth through a strong group of managers who are invested in teaching and mentorship. As a co-op and then as a full-time employee, I always felt comfortable asking questions and learning through feedback. In addition to day-to-day mentorship, I’ve benefited from meeting regularly with a firm-given mentor to help craft and refine my development goals. Managers take the time to explain not just what to do, but why it matters, which has accelerated my development.

Culture & Recruiting Insight

What characteristics do you think define a “Staxer”? What skills, mindset, or experiences help someone thrive in our fast-paced and collaborative environment?

Being a strong team player is essential to success at Grant Thornton Stax. The work is fast-moving, and projects move best when everyone collaborates closely and supports one another. It also helps to understand the idea of 80/20—focusing on what matters most and delivering the highest-impact insights (a skill I am still working and aiming to improve everyday!)

FUN FACTS:

What are you currently binge-watching or reading?

Binge-watching right now is all about True Detective! Reading is Sleep Walkers, by Christoper Clark (WWI history focusing on how it all started).

What’s your favorite place in Boston, and why?

Beacon hill is my favorite. I love history and find the streets charming to walk down.

What food can you never say no to?

Italian food, especially a branzino!

Grant Thornton Stax Advises Uplift Investors on its Formation of Orion Legal MSO with Dudley DeBosier Injury Lawyers

Wed, 28 Jan 2026 20:57:55 GMT

Grant Thornton Stax congratulates Uplift Investors on the launch of Orion Legal MSO , a managed services organization supporting leading plaintiff law firms, with Dudley DeBosier Injury Lawyers . We are proud to have provided commercial advisory support to both Uplift Investors and Orion Legal MSO on this successful formation.

Founded in 2009, Dudley DeBosier is a plaintiff-focused law firm representing clients in automotive accidents, workers’ compensation, medical malpractice, and personal injury matters, with six offices across Louisiana.

Through the partnership, Orion Legal will deliver a range of non-legal operational services to Dudley DeBosier and future affiliated firms, including marketing, finance, technology, talent management, and administrative support. This model allows attorneys to concentrate on delivering strong legal outcomes while benefiting from a scaled, professionalized operating platform.

Contact the Grant Thornton Stax team to learn more:

Tyler Veit

Roy Lockhart

Partner

About Grant Thornton Stax

Grant Thornton Stax Provides Sell-side Support to MCCi on its Acquisition by Incline Equity Partners

Wed, 28 Jan 2026 20:05:34 GMT

Grant Thornton Stax congratulates MCCi , a leading provider of enterprise content management and workflow automation solutions to public sector clients, on its recent acquisition by Incline Equity Partners . We are proud to have supported MCCI, a former Century Park Capital Partners portfolio company, on the sell-side, working closely with its management team and investment bank, Shea & Company , throughout this successful transaction.

Founded in 2003 and based in Tallahassee, Florida, MCCi is a GovTech software provider serving more than 2,300 public-sector organizations. The company offers solutions designed to replace manual, paper-based workflows with digital systems that improve efficiency across state and local governments. Its platform supports regulatory-driven functions such as document and records management, public records requests, permitting, licensing, and registration, helping agencies modernize operations and better serve their communities.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Lead

Will Barden

Partner

Roy Lockhart

Partner

About Grant Thornton Stax

Grant Thornton Stax Provides Sell-side Support to Czarnowski on its Acquisition by Platinum Equity

Fri, 23 Jan 2026 19:39:59 GMT

Grant Thornton Stax congratulates Czarnowski , a collection of integrated agencies providing end-to-end solutions for trade shows, corporate events, meetings, conferences, and other live experiences, on its recent acquisition by Platinum Equity . We are proud to have supported Czarnowski on the sell-side, working closely with its management team and investment bank, Baird, throughout this successful transaction.

Czarnowski Collective brings together four distinct studios to create impactful, end-to-end brand experiences. The firm designs and delivers everything from large-scale exhibits and live events to immersive environments and digital activations, helping brands engage audiences in meaningful ways. By combining creative vision, strategic thinking, and executional excellence, Czarnowski Collective supports brands in making lasting, high-impact connections.

Contact the Grant Thornton Stax team to learn more:

Florent Jarry

Roy Lockhart

Partner

Roy Lockhart

Partner

About Grant Thornton Stax

The Mispricing of ESG: A Capital Markets POV on Sustainability, Value Creation, and Competitive Edge

Fri, 23 Jan 2026 14:57:53 GMT

ESG has become a political, expansive, and often misunderstood topic. But behind the noise lies a deeper market inefficiency where M&A can capitalize on this disconnect. This joint perspective from Clearwater’s Joanna Daley and Grant Thornton Stax’s Anuj A. Shah unpack why ESG’s financial relevance has been obscured and how reframing it as a feature of enterprise value can reveal where real opportunity exists to sharpen competitive advantage. This article was originally published by Clearwater and is available on their website.

ESG's Repositioning Creates a Market Opportunity

Over the past several years, ESG has expanded in many directions: as a political lightning rod in the US, a compliance obligation in the EU, and a shorthand for everything from climate targets to workforce diversity. Somewhere along the way, its utility to investors and operators became obscured. What often gets labelled “ESG” is either too broad to be useful for decision making or too shallow to be material. That drift has created a pricing distortion, not because ESG does not matter, but because it has been consistently misunderstood and misapplied.

In investor memorandums, board discussions and equity stories, sustainability performance is often missing, muted or misaligned to how value is created and measured. Many companies are making meaningful investments in emissions reduction, supply chain resiliency, product design or workforce quality, and those efforts increasingly influence purchasing behaviour and shape competitive positioning. But because they are often reported through a framework-first lens, rather than tied to business fundamentals, they are excluded from underwriting and left out of the multiple that determines how the company is valued.

That outcome is both predictable and avoidable. In our experience at Clearwater and Grant Thornton Stax , where we advise companies and investors on integrating ESG in a material way, we argue that ESG only enhances value when it is approached as a byproduct of strong financial thinking.

Start with the business case — unit economics, growth capacity, risk management — and sustainability becomes a lens for detecting operational and strategic advantage. Start with ESG as the organizing principle and you risk chasing immaterial disclosures, spending defensively, confusing compliance with competitiveness and getting caught in an overall cycle of administrative bureaucracy.

Seen this way, ESG is a mispriced feature of enterprise value. For investors who can surface and communicate performance in investor-grade terms, that mispricing is an opportunity.

How ESG Data Falls Out of the Model

ESG is not an asset class or a siloed initiative. It is a category of operating and strategic signals. Some of those signals are highly relevant to valuation; others are not. Mispricing arises when those two groups are treated as if they are equally important.

Disclosure regimes and popular frameworks have often encouraged breadth instead of depth. Companies are pushed to report on long lists of indicators, many of which do not move revenue, cost, capital spending or risk in any meaningful way. At the same time, truly material indicators such as energy costs, losses or employee retention may be buried in appendices or omitted from ESG reporting altogether. The market is then asked to separate signal from noise, usually without enough context to do it well.

The core problem is a translation gap. Many companies now generate solid ESG-related metrics, but those metrics are not mapped to the financial variables investors actually model: growth, profitability, capital needs and risk exposure. Evidence that sits in a sustainability report is not automatically converted into relevance for cash flows or valuation. Upside from better growth or margins is underpriced. Downside protection from lower risk is underestimated. Close that translation gap and the exact same performance will earn attention in valuation, rewarding companies for outcomes that matter in the real economy and in portfolios.

How to Get ESG Back Into the Price

Transactions compress time and focus attention on what can be underwritten. That makes the issues above — broad disclosure without materiality and precise metrics without investor-grade proof — more visible. Yet, both fail to move price.

What doesn’t work: long catalogues of immaterial metrics, framework dumps, unaudited claims and ESG narratives detached from the equity story. These invite skepticism and keep sustainability performance out of the model.
What works: a short list of material ESG KPIs tied to specific financial levers (for example, energy intensity to gross margin, supplier reliability to revenue and inventory turns, incident reduction to loss ratios and insurance costs, or workforce stability to retention-sensitive revenue and productivity). Show trend, causality and repeatability, with evidence that withstands diligence and aligns with the operating plan.
Why it matters at exit: When ESG performance is financially legible, it widens the buyer universe, speeds conviction and can support stronger pricing. When it is not legible, capable companies leave value on the table and face slower, more conditional processes.

The ROI of a Focused Sustainability Strategy

Jackson Family Wines, one of the largest wineries in the US, provides a clear illustration of how a disciplined, business-first approach to sustainability can generate measurable financial results. Rather than looking across a broad swath of ESG topics, the company concentrated on a small number of material factors directly tied to its operating model, including energy use, water efficiency and packaging. It kept measurement manageable by tracking a limited set of KPIs that reflected tangible cost and operational outcomes.

Over several years, the winery invested roughly $19 million in solar generation, efficiency improvements and targeted resource management. Those initiatives delivered an estimated $26 million in savings. The impact was cumulative and reflected steady operational improvements rather than any single transformational shift.

ESG’s Strategic Utility is Growing

Capital markets are still recalibrating how they interpret sustainability-related performance. The term “ESG” may be under pressure politically and reputationally, but the underlying business signals remain relevant. The challenge is not whether ESG data matters, but how, where and when it’s applied.

In our work with investors and companies, the most actionable ESG factors are those that have a clear and direct connection to financial outcomes. And when those factors are surfaced in formats that capital markets already understand, they are more likely to be recognized and appropriately priced.

For investors, ensuring that real-world impact is properly reflected in valuation does two things at once: It supports stronger financial performance, and it strengthens the case for scaling solutions that work. ESG’s future utility does not depend on winning a political argument. It depends on execution that is relevant and grounded in how businesses deliver value.

Joanna Daley

Roy Lockhart

Director & Head of ESG and Impact

Joanna Daley is Director and Head of ESG and Impact at Clearwater, bringing two decades of sustainability expertise alongside transaction insight to ensure ESG is embedded in value creation. She advises corporates and investors on integrating ESG into business models to unlock commercial benefits and enhance brand positioning. Since joining Clearwater in 2022, Joanna has launched the firm’s multi award-winning ESG Advisory service—the first in mid-market corporate finance to integrate ESG directly into transactions. Her approach identifies and measures ESG risks and value drivers, so they inform valuations, diligence, and portfolio strategies. Recognised for aligning sustainability with financial performance, Joanna enables clients to capture growth opportunities and manage transition risk across the investment lifecycle.

Anuj A. Shah

Partner

Anuj A. Shah is a Partner at Grant Thornton Stax, where he works at the intersection of strategic risk, sustainability, impact, and ESG to deliver analytics-driven insights that drive both growth and resilience. Leveraging his capital markets background, Anuj advises private equity sponsors, portfolio companies, and investment banks on the business case for sustainability, pinpointing risks and value creation opportunities across the full investment lifecycle. Recognized for its integrated approach, the firm has been named a finalist for “Due Diligence Provider of the Year” at both the 2024 and 2025 Real Deals Sustainable Investment Awards.

In their respective roles, Joanna and Anuj work across markets and on both sides of transactions. Their view is simple: in commercial diligence and exit execution, ESG belongs in the core analysis; treating it as optional leaves value on the table.

Grant Thornton Stax Advises Gauge Capital on its Strategic Growth Investment in Ecosystems

Tue, 20 Jan 2026 20:25:54 GMT

Grant Thornton Stax congratulates Gauge Capital on its recent strategic growth investment in Ecosystems , a category-defining SaaS platform for Customer Value Management (CVM). We are proud to have supported Gauge Capital with investment advisory on this transaction.

Founded in 2010, Ecosystems is a leading SaaS platform purpose-built for Customer Value Management (CVM), serving as a system of record for customer outcomes. The platform is trusted by global B2B leaders such as HP, Verizon, ServiceNow, Atlassian, and Appian to help suppliers, customers, and partners collaboratively define, measure, and demonstrate value from initial engagement through renewal.

Ecosystems’ AI-enabled platform connects sales and customer success teams around a shared view of customer value, linking pre-sales business cases to post-sale value realization. By providing a consistent, outcome-focused framework, Ecosystems helps organizations strengthen retention, drive expansion, and support long-term growth through measurable, proven impact.

Contact the Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Lead

Chen L iu

Partner

Annie Sullivan

Director

Roy Lockhart

About Grant Thornton Stax

Private Equity 2026 Outlook: What Buyers Are Selecting For, and Where Capital Is Concentrating

Tue, 20 Jan 2026 18:29:15 GMT

Paul Edwards

Global Practice Lead

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Position

Name

Position

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As private equity enters 2026, with volumes buoyed, the defining shift is not capital or opportunity, but a change in buyer behavior. Assets continue to come to market and processes are active. What has evolved is what buyers are willing to underwrite and where they expect growth to come from once they own the business .

In the current environment, deals are less about narrative quality and more about performance credibility. ICs are increasingly focused on whether an asset’s results are durable, explainable, and improvable under realistic ownership conditions. The central question has moved from “Is this an attractive company?” to “Where does growth actually come from, how resilient is it, and what will tangibly improve under new ownership?”

From the vantage point of Grant Thornton Stax , 2026 is shaping up as a year of selectivity. Buyers are not broadly bullish or bearish. They are targeted, and capital is increasingly concentrating in areas where value creation is visible and executable.

Paul Edwards

Global Practice Lead

Assets Must Perform Under Tighter Capital Conditions

Financing markets have reset expectations. Higher rates, tighter underwriting, and more conservative leverage assumptions have pushed buyers to focus sharply on cash flow quality, margin durability, and downside protection .

Assets that continue to clear processes tend to demonstrate:

Stable or recurring revenue with limited reliance on aggressive growth assumptions
Evidence of pricing power or contractual economics
Margin structures that hold up under scrutiny, not just at peak performance

LP expectations reinforce this discipline. Capital is increasingly directed toward assets where value creation is tangible and defensible, rather than dependent on future multiple expansion or macro normalization.

Growth Is Underwritten Through Execution, Not Optionality

Growth remains central to investment theses, but how it is evaluated has changed. Buyers are placing less weight on aspirational expansion stories and more on operationally demonstrable growth paths .

Assets that resonate most strongly with ICs typically show:

Retention and customer behavior that support organic expansion
Clear operational levers tied directly to margin improvement or efficiency
Technology investments, including AI and automation, that already affect cost structure, speed, or decision-making

There is growing skepticism toward initiatives that sound compelling in diligence but fail to materialize post-close. Technology matters when it shows up in execution consistency, not when it remains conceptual.

Where We Expect M&A Activity to Concentrate Within Our Core Verticals

Based on ongoing dialogue with sponsors, we expect M&A activity in 2026 to remain focused within a defined set of sub-sectors across our core verticals. These are not simply attractive end markets in theory, but areas where capital is actively seeking deployment given a convergence of performance visibility, operational levers, and near-term value creation opportunity.

Healthcare

Behavioral health and outpatient specialty care

Behavioral health continues to see strong sponsor interest as demand growth remains durable, access gaps persist, and outpatient models offer scalability without the same capital intensity as acute care. In 2026, buyers are particularly focused on platforms where referral flow, clinician utilization, and payer mix can be actively managed, creating clear levers for growth and margin improvement.

Revenue cycle management and tech-enabled cost takeout

Revenue Cycle Management (RCM) remains in focus as providers face sustained margin pressure and labor scarcity. These assets are attractive not only for their recurring revenue profiles, but because performance improvement is measurable and near-term. Automation, analytics, and AI-driven workflow improvements are increasingly underwriting critical components rather than upside optionality.

Home-based and post-acute care platforms

As care continues to shift out of hospital settings, sponsors are leaning into scaled home-based models where operational discipline, scheduling efficiency, and payer contracting can materially improve economics. In 2026, buyer interest is centered on platforms that have already demonstrated an ability to manage complexity at scale rather than simply capture demand growth.

TMT (Technology, Media, and Telecom)

Vertical SaaS serving regulated or workflow-critical environments

Deal activity remains concentrated in vertical software platforms embedded in daily operations across healthcare administration, insurance, education, and construction. These assets are attractive in 2026 because retention, pricing power, and expansion are increasingly proven rather than theoretical, allowing buyers to underwrite growth with greater confidence.

Data capture and systems-of-record platforms

Sponsors continue to favor software that controls the point of data creation, particularly where that data feeds downstream automation, analytics, or AI use cases. ICs are prioritizing platforms where data is already monetized or operationalized, rather than future-state AI narratives.

Payments-adjacent software, fraud, and risk infrastructure

Platforms supporting payments enablement , fraud prevention, identity verification, and investigation workflows are seeing heightened interest. In 2026, the driver is increased transaction velocity, real-time risk requirements, and regulatory scrutiny, all of which favor scaled, workflow-embedded solutions.

Services (Including Industrial Services)

Environmental and compliance-driven services

Environmental services, testing, and remediation remain highly active due to regulatory complexity, recurring demand, and resilience across cycles. In 2026, buyers are particularly attracted to platforms that combine compliance mandates with opportunities for geographic density and operational standardization.

Inspection, testing, and monitoring services

These assets continue to attract capital as they sit at the intersection of regulation, safety, and infrastructure investment. Activity is being driven by mandated inspection regimes, high customer switching costs, and the ability to scale through add-ons while maintaining consistent margins.

Field-based infrastructure and specialty industrial services

Sponsors remain focused on services tied to critical infrastructure , including utilities, power, water, and transportation. In 2026, the appeal lies in multi-year demand visibility, labor-driven barriers to entry, and the opportunity to professionalize operations in fragmented markets.

Consumer and Commerce Enablement

Payments, loyalty, and customer engagement infrastructure

Consumer-facing platforms that support payments , loyalty, and retention are seeing renewed interest as brands refocus on unit economics and lifetime value. In 2026, buyers are underwriting these assets based on their ability to support repeat engagement and monetize first-party data rather than pure volume growth.

Automotive aftermarket and specialty retail enablement

Tech-enabled services supporting fragmented consumer end markets, particularly automotive aftermarket and specialty retail , continue to attract sponsor interest. These sub-sectors benefit from stable demand, operational complexity, and opportunities to improve pricing, logistics, and customer engagement.

Fraud, identity, and trust solutions impacting consumer transactions

As digital commerce accelerates, platforms that protect transactions and reduce fraud are increasingly viewed as core infrastructure. Buyer interest in 2026 is driven by rising fraud sophistication, regulatory pressure, and the need for real-time decisioning at scale.

Across these sub-sectors, activity is concentrating not simply because of favorable fundamentals, but because sponsors see clear, executable paths to value creation today . As deal flow tightens around these areas, firms with repeat exposure over time, supported by advisors with accumulated sub-sector pattern recognition, are better positioned to underwrite risk accurately, move decisively, and execute post-close.

Exit Outcomes Reflect Asset Quality, Not Market Timing

Exit markets remain selective, but assets with clear performance narratives continue to transact. Buyers are underwriting exits based on whether growth and margin expansion are credible to the next owner, not on expectations of broader market recovery.

Strategic exits, secondary buyouts, and partial liquidity events are all viable paths, but the common denominator is operational credibility and demonstrated progress.

Conclusion

Private equity in 2026 is defined less by macro swings and more by focus. Buyers are selecting assets with defensible performance, clear growth levers, and exposure to sub-sectors where demand and deal activity remain strong. Growth is expected to be earned through execution, not assumed through narrative.

At Grant Thornton Stax, we see 2026 as a year where understanding where capital is concentrating, why it is doing so, and how value is created inside assets will continue to separate winners from the rest. Visit our Insights page to learn more about our expertise.

Grant Thornton Stax Advises Ares and Automated Industrial Robotics on KAON Automation Acquisition

Mon, 12 Jan 2026 18:24:34 GMT

Grant Thornton Stax congratulates Ares Management and its portfolio company, Automated Industrial Robotics Inc. (AIR) , on its recent acquisition of KAON Automation , an Ireland-based industrial automation company that delivers advanced automation solutions for leading manufacturing companies globally. We are proud to have supported Ares and AIR with our investment advisory services in this successful transaction.

Founded in 2005 and headquartered in Sligo, Ireland, KAON has built a strong reputation for delivering highly customized automation solutions to medical and life sciences manufacturers, particularly in regulated production environments. The company specializes in designing and integrating automated production lines using modular system architectures that support flexible, scalable, and repeatable manufacturing. KAON is known for its expertise in intelligent conveyor systems, enabling high-throughput operations where precision, consistency, and uptime are critical.

Leveraging experience in central transport platforms and aseptic filling, KAON has also developed next-generation solutions that combine high-speed filling with zero-touch changeover. With a focus on technical excellence and innovation, KAON partners with leading component suppliers to deliver high-quality, efficient automation systems that enhance productivity while helping customers optimize capital investment.

Contact the Stax team to learn more:

Palash Misra

Partner

Joel Slater

Managing Director

About Grant Thornton Stax

ESG Trends to Watch: Grant Thornton Stax’s Top 10 for 2026

Fri, 09 Jan 2026 17:05:17 GMT

2025 marked a shift. For much of the past few years, ESG has felt reactive, shaped by external pressures (i.e., regulations, frameworks, commitments, industry initiatives), changing narratives, and the need to constantly affirm its relevance. That posture has now changed. A sharper focus on materiality and value creation is moving the work away from explanation and justification and towards decision-making and execution. The business case becomes clearer when the work is internally driven and informed by a deep understanding of a company, its industry, and the commercial trends shaping performance. Less complexity and more simplicity bring the most salient ideas into focus, particularly where sustainability intersects with revenue, cost, risk, and capital allocation.

With that backdrop, here are my Top 10 ESG Trends for 2026. These are not predictions per se, but more so perspective and context on where the work is heading. The intent is to underscore ESG’s continued relevance by showcasing how sustainability is increasingly influencing the macro environment, business decisions, capital allocation, and long-term value creation.

1. Less Data, Higher Quality

Momentum is shifting after several years of increasingly burdensome (and costly) data collection. The proliferation of ESG metrics and reporting requirements has flooded companies with data, often making it harder, not easier, to identify meaningful signals. The most progress toward better business outcomes will come from companies and investors narrowing their focus to a smaller set of decision-useful metrics used to track performance, manage risk, and inform capital allocation. Less data does not mean less rigor. It means clearer signals and better decisions.

2. Purpose-Built Energy and the Rise of Geothermal

After years of treating energy choices as ideological debates, 2026 looks like the year developers start treating energy the way they treat materials or financing, choosing what works best for the project. Geothermal will see increased adoption (where it makes sense) because it is clean, efficient, and draws on a durable energy source that can decarbonize heating and cooling while improving long-term operating economics. In 2026, more pilot programs will move beyond experimentation into broader deployment as costs come down, performance data improves, and benefits become clearer. Geothermal will not work everywhere, but where it fits, adoption will accelerate.

3. ESG’s Insights Yield Gets Taken Seriously

By 2026, ESG will be evaluated less on the volume of data produced and more on the insights it delivers. Pound for pound, ESG data can deliver outsized signals relative to other non-financial inputs because it often sits at the intersection of cost structure, operational risk, regulatory exposure, and value creation. More firms will start using ESG data as a direct input into underwriting and portfolio planning, rather than treating it as a parallel workstream. The advantages will come from triangulating this data with financial data, research, and industry context so analysis directly informs diligence findings and value creation priorities.

4. Sustainability Strategy Starts Before the Deal Closes

The next evolution of sustainability in private equity is moving upstream. Rather than treating it as a post-close exercise, firms are increasingly defining sustainability priorities during the deal process itself. Doing so allows investors to underwrite upside, prioritize risks earlier, and avoid retrofitting priorities after ownership begins. When done well, this pre-close clarity translates into a practical value creation playbook that gives operating teams a focused roadmap from day one and accelerates execution. Sustainability works best when it is embedded as part of the investment thesis, not added after the fact.

5. Climate Adaptation Becomes Acceptable, and Necessary

Climate strategy is no longer about mitigation. As physical and transition risks intensify, climate adaptation is emerging as a core pillar, particularly in asset-heavy and climate-exposed sectors. Best practice is shifting toward formal climate risk assessments that address emissions reduction, future emissions avoidance, and adaptation to a climate that, let’s face it, has already changed.

6. Sustainability Becomes an Innovation Engine

Sustainability will increasingly be recognized as a source of innovation, not a trade-off against it. History offers a clear precedent: tighter fuel efficiency standards helped accelerate the development of hybrid and electric vehicles by forcing automakers to rethink design, performance, and energy use. A similar dynamic is playing out across industries as sustainability concerns push firms to redesign products, processes, and supply chains. The companies that treat sustainability as an innovation input, rather than a compliance obligation, are likely to lead on both differentiation and performance.

7. Ceding the Future Has Consequences

Pullbacks in US renewable investment are beginning to carry visible strategic costs. As federal support for technologies like offshore wind is curtailed, the US risks ceding not just capacity, but innovation, supply chains, and long-term competitiveness to countries that continue to invest aggressively, particularly China . This is not simply a ‘source of energy’ debate. It is about who controls the technologies, cost curves, and expertise that will define future energy systems, industrial competitiveness, and energy security. In a global marketplace, stepping back does not pause progress, it reallocates it, along with the capital and talent that follow.

8. Blended Finance Grows Up or Gets Left Behind

With public funding constrained, the pressure to mobilize private capital toward impact has intensified. Blended finance is often cited as the solution, but unlocking more private wealth will require fluency in the language of institutional investors and framing opportunities through a commercial lens. Structures that rely on goodwill or concessionary framing will struggle, while those that clearly articulate risk, return, and downside protection will attract capital. The next phase of blended finance will be defined less by intent and more by execution.

9. The End of DEI, and the Beginning of Something Better

Organizations are moving beyond the DEI label toward a more mature, meritocratic approach focused on outcomes rather than optics. Much of the backlash has stemmed from reducing DEI to demographic box-checking, obscuring its original purpose: widening the talent pool, building stronger teams, and creating environments where people can perform at their best. The next phase emphasizes potential, complementary skills, and inclusion as drivers of performance, not ideology. Call it DEI or call it something else, but the work is evolving toward a clearer, more disciplined focus on how organizations identify talent and drive better results.

10. AI Governance Comes Before AI Scale

As AI adoption accelerates, governance is becoming a prerequisite, not an afterthought. The old “move fast and break things” mindset that defined earlier waves of tech adoption has left behind gaps in oversight, controls, and trust that are proving difficult to unwind. As AI roles proliferate across product, engineering, strategy, and automation, the absence of clear accountability around ethics, data security, and use cases is becoming a material risk. The next wave of adoption will favor firms that establish senior AI governance leadership before ramping execution, bringing order to a space that can no longer afford to break first and fix later.

BONUS: The Fossil Fuel Supply–Demand Paradox

Following the capture of Nicolás Maduro and renewed efforts to revive Venezuela’s oil infrastructure, a familiar narrative has resurfaced: expanding supply will restore the long-term viability of fossil fuels. In reality, increasing supply may ease prices in the short term, but it does little to address weakening demand fundamentals.

Most major oil companies and commodity traders now model global oil demand peaking or declining well before 2040, reflecting efficiency gains, electrification, and changing consumption patterns. In 2026, more investors recognize that while political actions can prop up supply, they cannot manufacture sustained marginal demand, increasing the risk that new oil infrastructure becomes stranded sooner than expected.

Anuj A. Shah

Partner, ESG & Impact Advisory

About Grant Thornton Stax

Now part of Grant Thornton Advisors LLC, Grant Thornton Stax is a global management consulting firm serving corporate and private equity clients across a broad range of industries including software/technology, healthcare, business services, industrial, consumer/retail, and education. The firm partners with clients to provide data-driven, actionable insights designed to drive growth, enhance profits, increase value, and make better investment decisions. Please visit www.stax.com and follow Grant Thornton Stax on LinkedIn , Instagram , Threads , and Facebook .

Grant Thornton Stax Provides Sell-side Support to Sur-Seal on its Acquisition by Brodie Generational Capital Partners

Fri, 09 Jan 2026 16:47:17 GMT

Grant Thornton Stax congratulates Sur-Seal , a leading advanced materials converting platform, on its recent acquisition by Brodie Generational Capital Partners . We are proud to have supported Sur-Seal, a former Heartwood Partners portfolio company, on the sell-side, working closely with its management team and investment bank, William Blair, throughout this successful transaction.

Sur-Seal designs and produces highly engineered, custom components that address demanding performance and reliability requirements. Its solutions span sealing, vibration and noise reduction, protection against dust and liquid intrusion, thermal management, and RFI/EMI shielding. As a provider of advanced material solutions, Sur-Seal partners closely with customers to overcome both engineering and supply chain challenges. The company brings a wide range of converting and manufacturing capabilities, backed by robust quality systems and certifications, and serves a diverse set of end markets.

Contact the Stax team to learn more:

Brad Kuntz

Roy Lockhart

Partner

Will Barden

Partner

Joel Slater

Managing Director

About Grant Thornton Stax

Grant Thornton Stax Advises Thoma Bravo on the Merger of Hypergene and Stratsys

Fri, 19 Dec 2025 19:06:31 GMT

Grant Thornton Stax congratulates Hypergene , a leading Nordic SaaS provider of Financial Planning & Analysis (FP&A) and portfolio management solutions backed by Thoma Bravo, on its recent merger with Stratsys , a former Verdane-backed leader in software for compliance, risk management, and strategy execution. We are proud to have supported Thoma Bravo with investment advisory on this transaction.

Stratsys is a Sweden-founded SaaS company that delivers an intelligent compliance platform designed to simplify compliance processes, risk management, and strategy execution. Its offerings span ESG, GRC, Quality Management, and Strategy Management, enabling organizations to plan, execute, and monitor activities that are essential to effective governance and regulatory compliance.

Contact the Stax team to learn more:

Florent Jarry

Roy Lockhart

Partner

Anuj A. Shah

Roy Lockhart

Partner, Head of ESG

Jai Singh

Director

About Grant Thornton Stax

Spreading Holiday Cheer Across Communities: Grant Thornton Stax Community ERG Unites to Give Back

Wed, 17 Dec 2025 20:24:50 GMT

Our Community ERG's across our US & UK offices teamed up to spread some holiday cheer, rallying together to donate toys to local charities. Chicago took the old-school route with an in-person toy store takeover, while Boston clicked their way to generosity online — different methods, same great outcome. Thanks to their efforts, children in our communities will receive much-appreciated toys this season. Here are the local organizations Grant Thornton Stax was proud to support.

Toys for Tots – Chicago

Mt. Sinai Children's Hospital – New York

ABCD - Boston

Great Ormond Street Hospital (GOSH) Charity

Grant Thornton Stax Provides Sell-side Support to Pairsoft on its Majority Growth Investment by TA Associates

Wed, 17 Dec 2025 19:28:22 GMT

Grant Thornton Stax congratulates Pairsoft , a leading provider of procure-to-pay automation and payment solutions, on its recent majority growth investment by TA Associates . We are proud to have supported Pairsoft, a former Turn/River Capital portfolio company, on the sell-side, working closely with its management team and investment bank, Deutsche Bank, throughout this successful transaction.

PairSoft delivers an end-to-end platform for procure-to-pay automation and payments, helping mid-market and enterprise organizations modernize accounts payable, procurement, payments, and document management on a global scale. Its AI-enabled technology connects seamlessly with leading ERP systems—such as Oracle, Oracle NetSuite, Microsoft Dynamics, Blackbaud, and Sage Intacct, giving finance teams greater efficiency, transparency, and control throughout the entire P2P process.

As a trusted provider in the procure-to-pay space, PairSoft empowers organizations to improve AP performance through intelligent automation and deep ERP integration. The company’s focus is on supporting finance and accounting teams as they take ownership of their P2P operations, offering enterprise-grade capabilities that enhance visibility, governance, and sustainability through data-driven automation and analytics.

Contact the Stax team to learn more:

Palash Misra

Roy Lockhart

Partner

Roy Lockhart

Partner

Tyler Michaels

Director

About Grant Thornton Stax

Grant Thornton Stax Provides Sell-side Support to Moss on its Acquisition by Vomela

Wed, 17 Dec 2025 18:39:53 GMT

Grant Thornton Stax congratulates Moss , a globally recognized producer of premium event and retail graphics, complex structures, and custom installations for innovative brand experiences, on its acquisition by Vomela , a Riverside Company-backed leader in visual communications, graphics, and experiential events across North America. We are proud to have advised Moss, a former EagleTree Capital portfolio company, on the sell side—working closely with its management team and investment bank, William Blair, throughout this successful transaction.

Established in 1955 and based in Franklin Park, Illinois, Moss has built a reputation for innovative tension fabric architecture, modular solutions, complex structural designs, and immersive experiential environments. The company works with many of the world’s leading brands, agencies, exhibit builders, and architectural firms, supported by a strong international footprint that includes operations in Germany, Poland, the UK, and Spain.

Moss collaborates with brands globally to bring stories to life through impactful experiences. Operating across North America and Europe, the company combines materials, technology, and craftsmanship with a focus on sustainability. With end-to-end capabilities spanning global sourcing, fabrication, printing, and technical design, Moss serves as a trusted partner capable of supporting a wide range of branding and experiential needs.

Contact the Stax team to learn more:

Florent Jarry

Roy Lockhart

Partner

Anantha Natalegawa

Director

About Grant Thornton Stax

Will Barden Named Among The Consulting Report’s Top 25 Strategy Leaders of 2025

Thu, 11 Dec 2025 19:33:38 GMT

Robert Lytle

Senior Managing Director

Phil Dunne

Managing Director

Will Barden

Partner

The Consulting Report is pleased to announce The Top 25 Strategy Consultants and Leaders of 2025 . Strategy consulting now sits at the center of how major organizations make consequential decisions, respond to disruption, and position themselves for the years ahead. The professionals recognized in this year’s list work at the point where corporate direction, technology, capital, and operations converge, shaping how companies grow, restructure, or rethink their business models amid shifting markets.

Their work spans some of the most intricate environments in the private and public sectors. They have guided multibillion-dollar transformations, advised on M&A and portfolio shifts, redesigned operating models, and helped organizations integrate AI, data, and digital capabilities into core decision-making. Their experience spans healthcare, education, industrials, energy, consumer markets, technology, and public institutions—sectors where strategic choices carry far-reaching operational and financial consequences. Collectively, they support leadership teams in making well-founded decisions that carry through in practice.

Among this year’s awardees, Jagan Ramachandran, Senior Partner at Cognizant Consulting, stands out for leading strategy across the healthcare payer segment, advising national and regional plans on digital strategy, customer experience, and the application of AI to reshape member engagement and operating models.

David Vidal, Senior Partner at Simon-Kucher and a member of the firm’s global Executive Committee, is recognized for directing commercial strategy and pricing programs across Europe and the U.S., guiding companies and private equity investors through the strategic decisions that drive profitable growth. Francisco Salazar, Global Strategy and Business Design Leader at Monitor Deloitte, is noted for overseeing one of the firm’s core global strategy disciplines and advising major organizations on competitive strategy, large-scale transformation, and organizational restructuring across multiple industries.

Will Barden

Partner

Investing in Pharma Technology: A Healthcare Breakfast Discussion

Mon, 08 Dec 2025 21:23:46 GMT

In partnership with Raymond James and Farragut Square Group , Grant Thornton Stax recently hosted a breakfast event to discuss emerging opportunities in pharma technology and tech-enabled services across the clinical development lifecycle. Joining us for the morning were several leading Private Equity firms and Investment Banks.

The agenda covered a c omprehensive view of how technology is transforming the pharmaceutical industry and where investors are focusing their attention, as well as a look into the evolution of the pharma tech stack across the drug development lifecycle. A key focal point was investor sentiment and valuation trends from recent transactions that are informing forward-looking investment considerations, including assets expected to come to market in 2026 and 2027.

Focusing more on 2026, our Healthcare team shared some high-potential investment themes stemming from AI-driven scientific enablement and automation. Most importantly, the discussion centered around the growing role of artificial intelligence in preclinical drug discovery, along with the importance of leveraging structured data systems like ELNs and LIMS in order to unlock AI’s full value.

The event covered a sector characterized by digital transformation, AI integration, and fragmented ecosystems that offer significant opportunities for consolidation and innovation. Some other key themes covered during the event include:

Pharma Tech Evolution Across Drug Development
Commercialization Trends
M&A Landscape

To learn more about the event, Pharma Tech, or our Healthcare vertical, click the button below to contact us directly.

Rob Larson

Partner

Jordan Abrams

Director

Recognizing Impact: Miriam El-Baz and Connor Novy Honored as Consulting Magazine Women Leaders

Tue, 02 Dec 2025 16:12:41 GMT

Miriam El-Baz and Connor Novy were recently recognized at the Consulting Magazine Women Leaders Awards, a program that highlights the outstanding contributions women continue to make across the consulting profession. Miriam’s honor for Excellence in Client Service and Connor’s recognition for Excellence in Strategy & Operations underscore not only their individual achievements, but also the broader impact of women who drive meaningful progress in our industry. We are grateful to Michael Webb, Editor of Consulting Magazine , for his ongoing commitment to elevating the consulting field and championing the accomplishments of women leaders.

Below, Miriam (center) and Connor (right) share their insights, advice, and reflections on what this honor means to them:

What do you consider your greatest personal or professional achievement?

Miriam - During my junior year of college, I sustained a severe injury that resulted in two broken bones in my left leg. At the time, my medical team anticipated that I would need to withdraw from college for the semester due to the extent of the surgery and recovery required. However, I was committed to remaining on track academically and making it to my first major consulting internship that upcoming summer.

With the support of a tight network of family, friends, and professors, I developed a structured plan that enabled me to manage a full course load while undergoing intensive rehabilitation. Over the course of a year, I progressed steadily—from using a wheelchair, to a walker, to a cane, to ultimately regaining full mobility.

Completing my degree on time despite these challenges remains one of my most significant personal achievements. The experience instilled in me a deep understanding of resilience, discipline, and the value of a strong support system that continues to inform my professional approach.

Connor - Building Stax’s GTM engine—and getting senior leaders to adopt a shared, commercially-aggressive posture. The hardest part wasn’t the tooling or metrics. It was aligning a group of high-autonomy, high-opinion Managing Directors to operate as firm-first sales leaders. It took a lot of tough conversations, trade-offs, and creating space where healthy tension could drive better outcomes. It took discipline to reinforce consistent strategies and judgment to know when to flex and grace to know when to let go. We built a durable operating model where commercial decisions are made with speed, intent, and shared accountability.

What’s the best advice—consulting or otherwise—you’ve ever received?

Miriam - A long-time mentor once gave me a piece of advice that has stayed with me: “Bet on yourself.” To me, this means trusting in my own abilities, judgment, and potential—especially when facing uncertainty, taking risks, or navigating complexity. Embracing this mindset has been transformative. It has taught me to lead with my own conviction rather than wait for external validation or approval, and it continues to shape how I approach challenges, make decisions, and chart my professional path.

Connor - Your reputation isn’t built on hours; it is built on results. While a positive impact is, in the end, the only thing that matters, it is a destination decided by its journey. How you get there impacts what you achieve.

What advice would you give to a female consultant just beginning her career?

Miriam - My advice to a female consultant at the start of her career is this: trust that you belong in the room, even when it feels intimidating. Speak with confidence, ask thoughtful questions, and don’t wait until you feel 100% “ready” to contribute—your perspective is valuable from day one.

Build strong relationships early, both with peers and mentors, and seek out people who will advocate for you when you’re not in the room. At the same time, advocate for yourself—be clear about your goals, raise your hand for stretch opportunities, and don’t shy away from feedback: it's one of the fastest ways to grow.

Finally, don’t underestimate the power of staying grounded in your values. Consulting moves fast, but staying true to what motivates you will help you navigate the pressure, the pace, and the pivots—and ultimately help you build a career that’s not only successful, but meaningful.

Connor - Grace under pressure. Behave in a way you will later be proud of when the going gets tough. It's not the mistakes people remember, it’s your response to them.

What would this recognition mean to you?

Miriam - This recognition would be deeply meaningful to me—not only as a personal milestone, but as a reflection of the people and experiences that have shaped my journey. Consulting can be demanding, and like many women in the field, I’ve had to navigate moments of doubt, challenge, and growth. Being recognized in this way affirms the value of perseverance, authenticity, and the importance of lifting others as you climb. It would also serve as a powerful reminder to continue betting on myself—and to encourage other women to do the same.

Connor - This recognition would be a rare moment to pause and reflect on the impact of quietly getting the hard stuff right, and a signal to keep pushing: that the work of structuring chaos, enabling good decisions, and building a firm based on integrity is worth the struggle.

Featured in Financier Worldwide—Accelerating value in PE carve-outs: strategy and execution

Tue, 11 Nov 2025 16:35:29 GMT

Financier Worldwide (FW) discusses strategy and execution for accelerating value in private equity carve-outs with Phil Dunne and Peter Rodrigues-Renon at Stax, a Grant Thornton company, and Gerard Nichol at Grant Thornton.

Phil Dunne

Roy Lockhart

Partner

Phil Dunne is a Partner and leads Stax, a Grant Thornton company’s, private equity initiatives in the UK and EMEA. With over 25 years of experience spanning both industry and consulting within the private equity ecosystem, he is a respected thought leader and strategic partner. Prior to the joining the firm, he served as the UK managing partner at Roland Berger, advising private equity and corporate clients across the automotive, aerospace and industrial sectors.

Peter Rodrigues-Renon

Managing Director | EMEA Value Creation Lead

Peter Rodrigues-Renon is a Managing Director at Stax, a Grant Thornton company, in the London office, leading the EMEA value creation practice. With nearly two decades of experience in M&A and strategy consulting, he specialises in driving growth, scaling businesses and enhancing operational efficiency for private equity clients. His expertise lies at the intersection of strategy, commercial insights and operational execution, which he combines to support private equity firms and corporate M&A teams in defining, quantifying and implementing value creation plans.

Gerard Nichol

Partner | Grant Thornton, London

Gerard Nichol is a partner in Grant Thornton’s operational deal services team and has been at the firm since 2011. He advises and provides clients with hands-on, operationally focused support on transactions. This is usually in relation to complex integrations (including synergy assessments), carve-outs and rapid, targeted change focused on sustainably enhancing the value of a business before its sale or after its acquisition.

FW: Could you provide a summary of the most significant trends and developments you have observed in private equity (PE) carve-outs over the past 12-18 months? How would you describe appetite and activity levels for this type of deal?

Dunne: The past 24 months have seen carve-out activity increasing and, as a structure, increasingly overlapping with private equity (PE) investment thematics. As a percentage of total M&A buyouts, carve-outs are increasing at around 10 percent per year, with an increasing concentration in the mid-market. Appetite is strong because these transactions offer proprietary, off-market deal flow, often at more balanced pricing than traditional auctions. A notable change I have seen is the dual role of carve-outs. Corporates continue to use them to streamline, and PE portfolios are also spinning out to release liquidity. With an increasing emphasis by PE on value creation these deals often present greater alpha opportunity than traditional buyouts. Industrial and energy carve-outs have dominated recent activity, but we are also seeing increasing momentum across technology, information services, and health. Carve-outs are no longer a niche category; they have become a mainstream deal type, offering entry, value creation and exit options for sponsors.

FW: In your experience, what are the most effective ways to accelerate value creation during the transition service agreement (TSA) period, without compromising operational stability?

Rodrigues-Renon: The transition service agreement (TSA) period is where I see many carve-outs begin to struggle. To accelerate value creation without destabilising operations, discipline is essential. I advise teams to follow four guiding principles: revenue, cost, risk and timing. Customer continuity must come first, since losing revenue momentum undermines the equity story immediately. It is also critical to structure the sale and purchase agreement and TSA so that the vendor retains financial incentives to support a smooth handover. Another success factor is capital planning. Separation costs should be calculated upfront and investment phased carefully, so the business and covenants are not stressed during a vulnerable period. Finally, dependencies between value creation levers and separation steps must be mapped. Growth initiatives that rely on tech platforms, systems or customer data access need realistic sequencing. If these fundamentals are handled well, the TSA period becomes not only a stabilisation window but also a launchpad for growth.

FW: How can PE sponsors ensure stability and momentum in the sales function during and after a carve-out, given that customer continuity and growth is the most critical driver of value growth?

Rodrigues-Renon: Sales continuity is often the single most important driver of value in a carve-out. Customers need to believe the newly independent business is stable, capable and committed. My first priority is signalling continuity: making sure account managers, contracts and service levels are preserved through the transition. My second priority is retaining key sales talent, so sponsors should design packages that reward both near-term retention and medium-term growth. Carve-outs also present an opportunity to sharpen the commercial proposition. Freed from legacy corporate constraints, the sales team can often pursue underserved customer segments, adjust pricing strategies or speed up decision making. Finally, communication matters – proactive outreach to customers explaining the benefits of independence builds trust and can even turn a potential churn risk into a source of momentum. In many successful carve-outs, stabilising and energising the salesforce has been the fastest route to preserving and growing enterprise value.

FW: How should vendors approach building a compelling equity story in carve-outs, particularly when the business has historically been positioned as a non-core asset within a larger group?

Nichol: When a business has been positioned as non-core, the vendor’s first task is to reframe the narrative. The equity story must shift from what the vendor did not sufficiently value or could not realise value from to what will be different for the business on a standalone basis or as part of a new trade acquirer’s group. That starts with articulating a new vision: how the asset becomes sharper, more focused and strategically relevant once independent or, where trade buyers are a likely acquirer, how being part of a different platform will unlock greater benefit. For businesses being divested by large groups, demonstrating that the carved-out business is freed from corporate constraints is critical, whether that is faster decision making, the ability to reinvest in growth or closer alignment with customer needs. In addition, demonstrating that there is a reinvigorated management team who can credibly sell the story and deliver this is key, and will be a focus for new investors. Vendors should also highlight how the business can capture opportunities that the current parent overlooked, for example through digital transformation, new channels or product innovation.

"When a business has been positioned as non-core, the vendor’s first task is to reframe the narrative."

-Gerard Nichol, Grant Thornton

FW: How should PE firms evaluate whether a carve-out is best positioned as a standalone platform versus a bolt-on to an existing portfolio company?

Nichol: The decision on whether to position a carve-out as a standalone platform or a bolt-on is about optionality and timing. A standalone platform preserves exit flexibility – it can be taken public, sold to a trade buyer or passed to another sponsor. However, it requires critical mass, a distinct equity story and sufficient independence to stand alone. Bolt-ons, by contrast, can deliver faster returns through synergy capture and multiple arbitrage, particularly when integrated into an existing portfolio. The trade-off is risk, if customer overlap, systems compatibility or cultural fit are weak, value can be diluted or destroyed. Increasingly, sponsors model both paths before committing, testing whether the equity story is stronger as standalone or as part of a platform. The right decision depends on hold period, customers perception and the appetite of prospective buyers at exit.

FW: How should PE firms approach synergy realisation and avoid integration pitfalls when acquiring carve-outs that are intended to bolt onto existing portfolio companies?

Rodrigues-Renon: When a carve-out is intended as a bolt-on, integration discipline is vital. I have witnessed the temptation to chase synergies immediately, but poorly sequenced activity can destabilise both businesses. The best approach is to set a phased integration roadmap anchored in customer continuity. Secure revenue first, then layer in revenue and cost synergies. Data and systems are often the biggest traps – rushing migrations without aligning on ownership, customer records, or regulatory needs creates real risk. Cultural integration is another pitfall, as leaders from the corporate parent may struggle in a PE environment, making communication and engagement critical. Finally, the capital intensity of the separation and integration should not be underestimated. Realistic budgets must be set for systems, branding and process harmonisation. When done well, synergies accelerate returns. When rushed, they can destroy the value originally underwritten. In bolt-on carve-outs, sequencing and planning are the real accelerators.

"When done well, synergies accelerate returns. When rushed, they can destroy the value originally underwritten. In bolt-on carve-outs, sequencing and planning are the real accelerators."

-Peter Rodrigues-Renon, Grant Thornton Stax

FW: In your view, what distinguishes a successful PE carve-out from a merely adequate one, in terms of stakeholder engagement, execution speed and long-term value creation?

Dunne: An adequate carve-out is one where there are no surprises and separation risks do not derail growth. A successful carve-out goes further – it accelerates into the growth plan from day one. Three factors stand out. First is stakeholder alignment. Management, employees, the seller and the sponsor all need to share a common vision and clear incentives. Second is execution speed. Successful carve-outs exit TSAs quickly while keeping the business stable. And third is strategic clarity. The value creation plan must be embedded in every decision, from IT investments to customer engagement. Where carve-outs fail, it is usually because execution and strategy become disconnected. The best outcomes materialise when every operational action reinforces the equity story. Success is measured not just by smooth separation, but by how quickly the business transitions from a former division to an independent, growth-ready market leader.

"An adequate carve-out is one where there are no surprises and separation risks do not derail growth. A successful carve-out goes further – it accelerates into the growth plan from day one."

-Phil Dunne, Grant Thornton Stax

Key Considerations for Investors Exploring the Automotive Retail Tech Value Chain

Thu, 06 Nov 2025 20:56:26 GMT

Market Overview

In the wake of the Covid pandemic, automotive tech investment activity has steadily increased in a variety of segments across the automotive retail value chain and broader market.

Investment focus in automotive technology continues to broaden beyond OEMs to the core service ecosystem – dealerships, aftermarket repair shops, and fleet operators. Each of these segments represents a large and increasingly technology-dependent end market. Software spend is shifting from discretionary marketing to mission-critical operating systems, creating structurally large and durable TAMs for platforms across the automotive lifecycle.

Automotive Dealerships , for example, are focusing on adopting solutions that can credibly demonstrate strong, measurable ROI. These dealers (independent and franchise) constitute a significant market with a wide breadth of needs and potential software applications. While the market is highly competitive, dealers view software as a critical part of doing business and, as they explore D2C and the agency model, the opportunity to serve them will only increase. However, OEMs may restrict dealer decision-making in certain categories.

Aftermarket shops utilize these technology solutions to improve customer communication, streamline appointment scheduling, facilitate payments, and improve operational efficiencies. Though their number is significant, their needs are relatively narrow next to dealers.

In addition to the auto retail value chain, there is also significant investor momentum across the broader market. In particular, investments in innovative solutions catering to fleet services operators (including loaner fleets at dealerships) enable operators to optimize fleet utilization while offering newer monetization models (e.g., on demand rentals). Investment across the automotive technology ecosystem is a result of growing markets, competitive fragmentation, and new/emerging use cases—especially within the highlighted segments (see below), where we observe the most interest:

Managing Director

Director

Market Overview

In the wake of the Covid pandemic, auto tech investment activity has steadily increased in a variety of segments across the auto retail value chain and broader market.

Dealers , for example, are focusing on adopting solutions that can credibly demonstrate strong, measurable ROI. These dealers (independent and franchise) constitute a significant market with a wide breadth of needs and potential software applications. While the market is highly competitive, dealers view software as a critical part of doing business and, as they explore D2C and the agency model, the opportunity to serve them will only increase. However, OEMs may restrict dealer decision-making in certain categories.

In addition to the auto retail value chain, there is also significant investor momentum across the broader market. This is a result of growing markets, competitive fragmentation, and new/emerging use cases—especially within the highlighted segments, where we observe the most interest:

Meet the authors

Managing Director

Director

Tailwinds

Increasing vehicle complexity combined with an aging vehicle base is driving a focus on efficiency and operations for automotive end-market customers:

Headwinds

Along with other factors, dealership consolidation and the broader shift towards electric vehicles serve as the primary potential headwinds in certain end-markets:

Fragmentation

Automotive dealerships, repair shops, and fleet / mobility markets represent large and relatively fragmented markets with increasingly complex software requirements. There are sizeable market opportunities across each segment of the automotive aftermarket spectrum; each end-market has its own unique and dynamic underlying technology stack.

Automotive Dealerships

Automotive dealership tech stacks are typically built off of a Dealership Management System, but include a host of other software solutions.

In addition to selling new and used cars, automotive dealerships provide financing and manage fixed operations including parts, service, and collision repair. There are an estimated ~18k+ franchised dealerships across the US, and more than 40k+ independent dealerships currently selling new and used vehicles. Auto dealerships are typically the most mature and well-capitalized buyers of software as they tend to have a higher focus on customer experience, lead conversion, and fixed operations profitability.

Aftermarket Repair / Collision Shops

Independent repair facilities that provide diagnostics, routine maintenance, and repair services. This market includes general repair shops, tire and lube chains, collision centers, and multi-shop operations (MSOs). There are an estimated ~160k+ independent auto repair establishments in the US. The market is largely dominated by smaller shops (<10 FTEs) but has experienced continued consolidation. There is high demand for shop management systems (SMS),digital vehicle inspection (DVI), and scheduling tools.

An average aftermarket service shop can be using up to 5+ different software vendors; core shop management systems (“SMS”) often plug-in with adjacent point solutions.

Fleet Services and Mobility

Within the B2B segment, fleet companies are served by a broad assortment of vendors. The underlying fleet services require tools for maintenance, compliance, driver management, and cost optimization.

Currently there are an estimated ~3.5+ million commercial vehicles in the US across ~250k+ fleet operators. This is significant because software adoption is typically driven by scale and complexity of operations. Specifically, a premium is placed on telematics, predictive maintenance, payments, and admin automation tools and buyers often require integration with ERP, fleet cards, and compliance systems.

Investment Considerations

Grant Thornton Stax has prepared these five considerations for any investors interested in exploring opportunities in automotive tech:

AI - Opportunity vs. Risk

Opportunity: AI unlocks efficiency and monetization across call analytics, customer engagement, predictive maintenance etc. Massive opportunity or data-driven upsell opportunities.
Risk : Rapidly evolving models mean vendors must continually reinvest to maintain differentiation - is your value prop eroding? Some capabilities are at risk of commoditization.

Demonstrable ROI

Both dealerships and repair shops alike demand measurable ROI before adopting (i.e., inbound leads, efficiency gains, etc.). Solutions without a clear payback period are unlikely to scale in a fragmented, cost-sensitive ecosystem. ROI proof points drive stickiness.

Modern vs. Legacy Systems (User Experience)

Next-gen platforms (e.g., Tekion, Shop Monkey, AutoVitals) are winning share by being cloud-native and intuitive. However, legacy incumbents still control large installed bases, slowing migration and creating some friction for new challengers.

Integration

Best-in-class integrations with SMS / DMS platforms or OEM ecosystems are important - though dependence on one partner creates risk.
Assets with open APIs and multi-partner integrations are positioned to scale faster.

ICP Focus — Health of Target ICP

It's important to understand underlying market dynamics and identify what portion of the market is ready to adopt your product (e.g., aftermarket repair shops with <4 bays may not adopt much software beyond core SMS).
Multi-shop operators and PE-backed consolidators are accelerating adoption as they standardize solutions across roof tops.

About Grant Thornton Stax

Grant Thornton Stax has extensive experience across automotive technology including the underlying sub-categories. We have built in-depth expertise supporting Sponsors and Management teams to optimize the value of their investments across buy-side, sell-side and value creation engagements, and are actively tracking the deal activity in this space. To learn more about automotive technology or discuss our priority watchlist, reach out to Sameer Tejani and Max Massaro , or click here to contact us directly .

Learn more about our private equity consulting services, industry expertise, or explore our latest insights.

Unlocking US Growth: Why European PE-Backed Software Firms Are Eyeing Expansion Stateside

Tue, 04 Nov 2025 16:32:52 GMT

Ben Bugg

EMEA Financial Sponsors Coverage

In today’s evolving market landscape, the US remains an enticing destination for European private equity backed software companies. Drawing on insights from our recent Stax Breakfast event , "Unlocking US Growth Potential" (February 2025), where we were joined by leading Private Equity firms and Investment Banks, we’ve distilled key strategic takeaways to help European businesses successfully navigate US expansion:

What is the US Market Advantage for European Private Equity?

European investors are increasingly drawn to the US market for its robust fundamentals and unique growth dynamics. Our analysis reveals that:

Strong Fundamentals Drive Demand: The current deal flow is powered by healthy market fundamentals. Yet, a scarcity of exits has led to an accumulation of vintage assets.
Valuation Premiums Continue to Climb: US assets consistently command a significant premium—a gap that has widened notably over the past five years.
Transformative Opportunities Abound: For UK/EU businesses, the US offers unparalleled growth prospects. However, a nuanced understanding of local market challenges is essential to fully capitalize on these opportunities.

What are the Strategies for Successful US Growth?

Expanding into the US demands a refined, data-driven approach. Key strategies include:

Targeting the Right Customer Segments: When a segment like enterprise is mature, shifting focus to mid-market and SMB opportunities can unlock significant market share and uncover untapped whitespace.
Establishing a Winnable Beachhead: A focused market entry strategy—potentially accelerated by targeted M&A activity—can serve as a critical stepping stone for broader US expansion.
Mitigating Product and GTM Risks: Success hinges on balancing product innovations with effective go-to-market (GTM) strategies. Building brand awareness, competing effectively, and managing market transitions are crucial elements for sustained growth.

How do US Software Investors’ Approach CDD?

Due diligence in the US market reflects a distinct mindset:

Speed and Granularity: US investors—often part of transatlantic PE teams—tend to move faster and expect detailed, data-backed insights. They use tools like the VCDD to “get smart quick” and hone in on growth levers.
Growth Over Downside: Unlike their European counterparts, who may emphasize downside protection, US deal teams prioritize a business’s scalability and long-term growth potential, placing less focus on management’s detailed plans.

About Stax

By leveraging these insights and adapting your market entry strategy accordingly, European companies can better position themselves to harness the full potential of the US market. At Stax, we’re committed to empowering our partners with the actionable insights and strategic guidance needed to drive success across borders. Contact us now to chart your path towards a successful exit in the US and maximize the value of your next strategic move.

Interested in US Exits? Read more!

Insights Related to TransAtlantic Growth:

Vince Zosa

Partner

Andrew Keller

Managing Director

Peter Rodrigues-Renon

Managing Director

Sagar Bansal

Managing Director

Grant Thornton Stax Provides Sell-Side Support to SteelEye on its Merger With FundApps

Mon, 03 Nov 2025 18:20:42 GMT

Grant Thornton Stax congratulates SteelEye , a leading trade and communications surveillance and data analytics platform, on its recent merger with FundApps . Existing FundApps investor FTV Capital provided an additional equity investment to consolidate the two industry-leading RegTech providers. We are proud to have supported SteelEye on the sell side, working closely with its management team and investment bank, Perella Weinberg Partners, throughout this successful transaction.

SteelEye is the industry’s pioneering integrated trade and communications surveillance solution. They empower financial firms with the data-driven tools and complete insights they need to focus on what matters, all from a single platform. Founded in 2017, SteelEye has offices in the UK, North America, Portugal, and India, while also being incorporated in Singapore.

Contact the Grant Thornton Stax team to learn more:

Will Barden

Roy Lockhart

Partner

Jai Singh

Director

About Grant Thornton Stax

Grant Thornton Stax Perspectives on the Growth Outlook of Data Centers

Mon, 03 Nov 2025 15:13:03 GMT

Tyler Veit

Partner

Joel Slater

Managing Director

Tyler Michaels

Director

Kate Philbrick

Manager

Name

Position

Name

Position

Name

Position

Over the past decade, global appetite for data has grown exponentially. As data generation doubles roughly every three years, data centers are racing to keep pace. However, despite large investments into data centers, vacancy rates continue to decline across major markets, highlighting an ongoing capacity shortage. With typical US data center build times spanning 3 to 6 years, supply will remain tight, driving continued demand for construction, power, and supporting infrastructure.

The next phase of expansion will be shaped by a balance of supply and demand constraints. On the supply side, limited grid capacity and land availability are slowing the pace of new development, particularly in key hubs like Northern Virginia and Silicon Valley.

On the demand side, several factors could moderate growth. Continued advances in hardware efficiency may reduce the power intensity of computing. As AI models mature, training workloads (the most energy-intensive component) could taper, shifting toward lighter inference activity. While hyperscalers have fueled much of the sector’s expansion, their investment pace could slow if AI monetization lags or regulatory costs rise. Still, even under these scenarios, the underlying demand for data processing and storage continues to trend upward.

Looking ahead, capacity will continue to expand, though we expect the market to move toward fewer, larger new builds, led by hyperscalers with the capital and technical capabilities to overcome grid and land constraints. This consolidation will likely narrow the field of new projects but amplify total spend, as each new site becomes larger, more power-intensive, and more sophisticated.

Conclusion

As data center development shifts toward larger builds, demand for specialized service providers, such as those offering backup power, electrical systems, and cooling infrastructure, is poised to grow. This will create opportunities for investors seeking to back scalable platforms positioned to serve data centers.

Grant Thornton Stax partners with private equity investors to identify, evaluate, and capture these opportunities. With more than 30 years of experience delivering actionable insights across the industrial, business services, and technology sectors, we help clients uncover growth pathways and drive value creation. Learn more about our expertise at www.stax.com or contact us directly.

Tyler Veit

Partner

Joel Slater

Managing Director

Tyler Michaels

Director

Kate Philbrick

Manager

Grant Thornton Stax Appoints Chen Liu as Partner to Drive Growth in Technology and Education Sectors

Thu, 30 Oct 2025 17:12:52 GMT

NEW YORK, October 30, 2025 /PRNewswire/ -- Grant Thornton Stax , part of the Grant Thornton Advisors LLC multinational platform, and a global strategy consulting firm specializing in commercial due diligence, value creation, and exit planning for private equity firms, PE-backed companies, hedge funds, and investment banks, today announced the appointment of Chen Liu as Partner in its Chicago office.

With more than a decade in consulting, Chen brings deep expertise advising private equity investors and corporate leadership teams on both buy- and sell-side diligence, corporate strategy, and growth acceleration initiatives. He has led over 100 projects in the technology sector, developing significant knowledge and experience across EdTech, enterprise software, administrative platforms, and GovTech. His work spans K–12, higher education, and professional learning platforms ; as well as ERP, HR/HCM, CRM/CMS, workflow automation, and other back-office solutions.

Before joining Grant Thornton Stax, Chen was part of the EY-Parthenon's private equity practice, where he primarily focused on commercial due diligence for technology and B2B services businesses.

“We’re thrilled to welcome Chen to the Grant Thornton Stax team,” said Paul Edwards , Global Practice Lead, Grant Thornton Stax. “His decade-plus experience advising investors and management teams on scaling B2B services and software companies adds tremendous depth to our practice. Chen’s career has been defined by curiosity, drive, and a mentorship mindset—qualities that align perfectly with our culture. We’re excited to have him join our leadership team and continue building a culture where great people do their best, most impactful work for clients.”

"Chen’s exciting addition is an important move in expanding the depth and agility of our team,” said Tom Puthiyamadam , national managing partner of Advisory Services at Grant Thornton Advisors LLC. “His experience adds a layer of insight that’s both timely and transformative. By adding the right subject matter experts, we’re not just bolstering our capabilities—we’re sharpening our edge in delivering specialized, tech-driven solutions that meet the evolving demands of our clients."

“What excites me most about joining Grant Thornton Stax is the firm’s entrepreneurial spirit and collaborative culture,” said Chen Liu. “The team operates with the agility of a focused firm while consistently delivering the depth and rigor of a global platform—a combination that truly sets Grant Thornton Stax apart. Its focus on private equity aligns closely with my background and interests, and I’m eager to contribute to the firm’s accelerated growth in this next stage of expansion under Grant Thornton. With experience across technology and education sectors, I look forward to helping Grant Thornton Stax further expand its sector expertise and deliver even greater value to clients through sharper insights, AI-driven analysis, and strategic guidance.”

Media contact: Joe Brownell , Global Head of Marketing, Grant Thornton Stax, jbrownell@stax.com

About Grant Thornton Stax

About Grant Thornton

Grant Thornton delivers professional services in the US through two specialized entities: Grant Thornton LLP, a licensed, certified public accounting (CPA) firm that provides audit and assurance services ― and Grant Thornton Advisors LLC (not a licensed CPA firm), which exclusively provides non-attest offerings, including tax and advisory services.

In January 2025, Grant Thornton Advisors LLC formed a multinational, multidisciplinary platform. The platform offers a premier advisory and tax practice, as well as independent audit practices. With offices across the Americas, Europe and the Middle East, the platform delivers a singular client experience that includes enhanced solutions and capabilities, backed by powerful technologies and a roster of 15,000 quality-driven professionals enjoying exceptional career-growth opportunities and a distinctive cross-border culture.

Grant Thornton is part of the Grant Thornton International Limited network, which provides access to its member firms in more than 150 global markets.

Grant Thornton LLP, Grant Thornton Advisors LLC and their respective subsidiaries operate as an alternative practice structure (APS). The APS conforms with applicable laws, regulations and professional standards, including those from the American Institute of Certified Public Accountants.

“Grant Thornton” refers to the brand under which the member firms in the Grant Thornton International Ltd (GTIL) network provide services to their clients and/or refers to one or more member firms. Grant Thornton LLP and Grant Thornton Advisors LLC serve as the U.S. member firms of the GTIL network. GTIL and its member firms are not a worldwide partnership and all member firms are separate legal entities. Member firms deliver all services; GTIL does not provide services to clients.

Education Growth Strategy: Rethinking the Commercial Engine

Thu, 30 Oct 2025 14:40:23 GMT

Miriam El-Baz

Managing Director

Alex Erines

Director

Name

Position

Name

Position

Name

Position

In recent years, private equity investment in the education sector has remained strong, with sustained interest in companies delivering technology, products, and services to the K-12 market. During this period, firms have discovered that growth playbooks used in other verticals do not translate seamlessly to this market.

More specifically, traditional go-to-market (GTM) strategies that rely on aggressive sales outreach or high-velocity lead generation are often insufficient to achieve the organic growth ambitions of portfolio companies.

Therefore, the key question facing private equity and portfolio company leaders is: "How do we align our commercial engine to how district and school leaders buy today?"

Outdated GTM Playbooks Don’t Work in Education

Many PE-backed education companies struggle with commercial scaling because their GTM strategies are designed for environments with faster sales cycles, clearer buyer personas, and lower regulatory complexity.

In education, those assumptions rarely hold. Decision-making can be diffuse, with different stakeholders influencing selection, holding budget, and using the product. Procurement cycles are long, often governed by compliance requirements, RFPs, and board approvals. And, perhaps most importantly, key decision makers place a premium on trust.

Effective GTM strategies for education require a fundamentally different approach. It starts with building a clear stakeholder map that defines roles, influence, and decision-making dynamics across the buying process. From there, sales motions can be structured to reflect how buyers—typically districts—evaluate and adopt new solutions. Also critical is the use of outcome-based messaging that speaks to what district and school leaders value: student impact, instructional quality, and operational efficiency.

At Grant Thornton Stax, we recently observed this firsthand in our work with a provider of K-12 professional development solutions. Despite strong brand equity and a high level of customer satisfaction, our client was experiencing stalled growth. Through a comprehensive commercial assessment, we identified a key gap: the company was over reliant on inbound demand and legacy district relationships while under-investing in outbound sales capacity and structured district targeting. By developing a segmentation-driven GTM strategy—including a refined and actionable Ideal Customer Profile (ICP), refreshed personas, and targeted messaging—the organization is now positioned to reaccelerate growth across both current and whitespace districts.

Miriam El-Baz

Managing Director

Alex Erines

Director

Start with Stakeholder Mapping

In education, the sales funnel is seldom linear. Accordingly, we advise clients to start by mapping stakeholder dynamics inside their priority segments. Key questions include:

Who owns the budget?
Who influences provider selection?
Who will use the product?

These roles often sit in different parts of the education ecosystem, from district administrators and school boards to school-level leaders and teachers.

Once the stakeholder map is well understood, the sales motion can be purpose-built for success. As an example, this may require a company to:

Build awareness with educators
Gain commercial alignment with buyers and budget holders
Ensure procurement readiness with compliance officers

Use Outcome-Based Messaging

District and school leaders seek to buy student outcomes, instructional quality, and efficiency—not flashy dashboards and integrations. Our work with several K-12 EdTech and services providers shows that messaging is most effective when it emphasizes the metrics that matter most to schools, rather than descriptions of features. These generally include:

For student-facing solutions:
Student achievement gains, overall and by segment
Student engagement (e.g., usage rates, attendance improvements)
For teacher-facing solutions:
Teacher satisfaction and usage
Teacher time saved per week
For administrator-facing solutions:
Administrator satisfaction and usage
Administrator time saved per week
Tangible cost savings and/or ROI

A common misstep we particularly see in EdTech is one-size-fits-all messaging that focuses on the platform, not the pain point. Differentiating this messaging and aligning it to clearly defined customer segments (e.g., urban districts focused on equity vs. rural districts focused on staffing gaps) can dramatically improve engagement and conversion.

Rebuilding the Commercial Engine in Education

Across our education value creation work, we consistently see companies realize their revenue growth goals when they adopt a GTM structure built for this market, actioning:

Segment-level stakeholder mapping to define roles, decision rights, and friction points
Persona-based messaging that aligns to real-world educational outcomes, not platform features
Omnichannel marketing that prioritizes relational and influence-based channels (e.g., educator referrals, school associations, community partnerships)
Salesforce alignment around long-cycle, multi-contact pursuits—with defined KPIs beyond quota (e.g., district advocacy, board engagement, pilot success)
Salesforce enablement that equips the team to effectively navigate compliance, RFPs, and highly relational buyer journeys

Conclusion

The education market rewards alignment, not speed. For private equity firms and operators, driving commercial growth often means rethinking the sales playbook, reframing KPIs, and rebuilding the GTM model in accordance with how education decision makers buy.

Grant Thornton Stax supports private equity investors, PE-backed companies, and educational institutions in the Education & Public Sector landscape. Our team delivers insights and strategies to providers of—and investors in—software, products, and services across the entire ecosystem, from early childhood education to professional learning, and from municipal to federal government.

To learn more about Grant Thornton Stax and our expertise, visit our Education & Public Sector page or contact us directly.

The MSP Landscape: Ripe for Consolidation, Expansion, and Expertise-Led Differentiation

Tue, 28 Oct 2025 14:05:49 GMT

Tyler Veit

Partner

Tyler Michaels

Director

Luke Scheibel

Director

Yiwei Jiang

Director

Name

Position

Name

Position

Name

Position

MSP Overview

Managed Service Providers (MSPs) sit in the middle of the IT services landscape, overseeing clients’ IT strategy and infrastructure while increasingly moving beyond lower-complexity support into higher-margin, value-added solutions (e.g., Compliance Advisory, Managed Security).

Grant Thornton Stax estimates the US MSP total addressable market (TAM) at approximately $250B , with roughly 60% concentrated in small and mid-market firms (i.e., organizations with fewer than 1,000 FTEs). Within this segment, there is significant whitespace opportunity across both adoption , as many firms have yet to engage a third-party MSP, and penetration (i.e., firms not outsourcing full suite of IT needs).

Key Investment Themes for MSP

Capturing tech-enabled growth without exposure to select tech provider risk: Capture the upside of broader technology adoption while maintaining a “Switzerland” position, benefiting from multiple platforms without dependence on any single software or hardware provider.
Meaningful cross-sell opportunities into higher-value services through control of customer relationships: Strong ownership of client relationships creates recurring, stable revenue streams and opens opportunities to cross-sell into more services (e.g., security, compliance).
Fragmented industry landscape enabling consolidation / platform expansion strategy: With leading players holding less than 5% market share, the sector offers significant runway for consolidation, roll-ups, and platform expansion.
Meaningful whitespace providing room for organic growth: Especially at the lower end of the market where firms have not adopted more advanced services (e.g., security).
Risks and opportunities from AI remain to be seen, but near-term risks appear moderate (see the final section of this article for details).

Tyler Veit

Partner

Tyler Michaels

Director

Luke Scheibel

Director

Yiwei Jiang

Director

MSP Segmentation / Grant Thornton Stax View of the Provider Landscape

There are multiple ways to segment MSPs, including:

Size focus: SMB vs. mid-market and Enterprise.
Vertical strategy: Single-vertical focus, multi-vertical focus, or generalist approach.
Technology stack focus: Aligned with specific tech ecosystem(s) (i.e., Microsoft).

We categorize the market using the following buckets:

While these categories are not strictly MECE, each represents a distinct way to play in the MSP market and highlights a different strategic positioning.

MSP Investment Consideration

There are several approaches to selecting and growing MSP investments, each with distinct trade-offs. Grant Thornton Stax evaluates opportunities along the following dimensions:

Verticalized Approach : Targeting specific industries to build deep domain expertise and tailored solutions.
Ecosystem Alignment: Anchoring to a specific technology ecosystem.
Horizontal Expansion: Broadening the scope of service offerings to capture more wallet share.

Verticalized Approach

Description : Some MSPs choose to focus on a few verticals (e.g., Integris focuses on Financial Services, Legal, etc.; Medicus and MTS focusing on Healthcare). In highly regulated verticals and / or sectors rely on specialized line-of-business software, verticalized approach resonates strongly (see below for the illustration of sectors that value verticalization) .

Benefits : Vertical specialization translates into higher win rate and pricing power. In certain industries, true verticalization creates real value (see below for illustrative business use cases for select verticals) . In others, it may serve primarily as a GTM accelerator, helping the team “speak the language” of the industry and build credibility with customers.

Key Questions / Considerations:

The gist is to understand the depth of the verticalization: Does the MSP have a true moat and differentiated business use case within a vertical, or are they only superficially aligned (leveraging reputation and vertical branding to aid GTM)?
Verticalization can be both a strength and a limitation. On the one hand, it can justify higher pricing and differentiation. On the other hand, it may constrain growth runway and increase exposure to single-industry risks. For this reason, some players pursue a multi-vertical strategy—for example, Integris, Thrive, and the Abacus + Med Tech merger—to balance the benefits of specialization with the resilience of diversification.

Ecosystem Alignment

Description: Another way for MSPs to specialize and differentiate is through an ecosystem play , positioning themselves as the expert within a single software ecosystem and serving customer needs related to it. Examples include MSPs specializing in Microsoft (e.g., Qurom Cyber, Huntress, Netrix) and transformational services providers focusing on IBM, Oracle, and others.

Benefit : The upside of this model is meaningful differentiation:

Expertise through focus: Concentrating on one ecosystem allows the provider to develop deep expertise, making them the preferred choice for customers.
Alliances that drive growth: Strong partnerships with the ecosystem vendors help generate leads and expand the top of funnel. By enabling the vendor to deliver value to its customers, the MSP becomes a natural extension of the “mothership,” which in turn directs customers their way.

Key Questions / Considerations: The key to success lies in making the right ecosystem bet and ensuring the ability to scale once that bet is made.

Horizontal Expansion

Adjacent / Advanced Capabilities: MSPs can also drive revenue growth and differentiation by expanding into adjacent capabilities such as Managed Security, transformation services, MDR, compliance services, and IT advisory.

Benefit : Because MSPs “own” the customer relationship, these additional offerings create natural upsell opportunities and strengthen account stickiness. MSPs also sit close with customers’ infrastructure, making them the ideal candidate to address other tech service needs from customers.

Key Questions / Considerations : The key consideration is how aligned are the additional services the MSP’s ICP (ideal customer profile)..For example: SMBs typically value a one-stop-shop model and are often satisfied with the MSSP/MDR capabilities bundled within their MSP. Whereas Enterprises, on the other hand, often prefer specialized, pure-play MDR providers that offer deeper expertise. Therefore, MSPs focused on lower end of the market might have more potential for this strategy.

Impact of AI

“What is the impact of AI?” is a growing question across investments, and MSPs are no different. While the market is evolving quickly, we currently view AI as more of an opportunity than a threat for MSPs in the near-term:

Opportunities: AI offers MSPs the chance to drive internal efficiency (e.g., ticket intake, scheduling, cost-to-serve reduction) and create new revenue streams by packaging managed AI services for SMBs or embedding AI into compliance monitoring.

Risks: While AI is beginning to automate Tier 1–2 support tasks, adoption among SMBs remains limited (lack of budget and maturity), and compliance work is still highly consultative. As a result, near-term displacement risk to the MSP business model is muted.

Conclusion

Grant Thornton Stax brings corporate strategy and operational knowledge to MSP engagements, paired with 30+ years of experience serving clients throughout the investment lifecycle. Having been involved in a majority of recent MSP transactions, our Software and Technology team — consisting of seasoned industry experts and insiders — provides knowledgeable depth and breadth to every engagement. To learn more about our expertise with MSPs, visit our Insights page or contact us directly .

Recent Grant Thornton Stax Deals in the MSP Space

Stax Advises Berkshire Partners on its Strategic Investment in Thrive, an Industry-Leading MSP

Stax Provides Sell-Side Support to Integris, a leading IT MSP, on its Acquisition by OMERS

Stax Advises Berkshire Partners on its Strategic Investment in Thrive, an Industry-Leading MSP

Stax Provides Sell-Side Support to Integris, a leading IT MSP, on its Acquisition by OMERS

Grant Thornton Stax Provides Sell-side Support to CR Fitness on its Strategic Growth Investment by Sixth Street

Thu, 23 Oct 2025 18:44:26 GMT

Grant Thornton Stax congratulates CR Fitness on its recent strategic growth investment by Sixth Street , a global investment firm. We are proud to have supported CR Fitness, the leading franchisee in the Crunch Fitness system, on the sell side, working closely with its management team and investment bank, Harris Williams, throughout this successful transaction.

CR Fitness is the largest franchisee in the Crunch Fitness system, operating nearly 90 clubs across Florida, Georgia, North Carolina, Texas, and Tennessee, with plans to expand into Arizona. Recognized for the system’s highest unit volumes, CR Fitness delivers a high-energy, high-value gym experience built on great programming, welcoming clubs, and community.

Contact the Stax team to learn more:

Will Barden

Roy Lockhart

Partner

Roy Lockhart

Partner

Sameer Tejani

Managing Director

Shoaa Ansari

Associate Director

About Grant Thornton Stax

Phil Dunne Featured on The Consulting Report's Podcast: Top Consultant

Thu, 23 Oct 2025 18:39:11 GMT

Grant Thornton Stax Partner Phil Dunne recently joined the Top Consultant podcast hosted by T he Consulting Report , to discuss his career and Grant Thornton Stax. Hosted by RJ Lumba, the show highlights nominees of their "Top Consultant" lists to learn more about them and how they do the work they do.

Tune in to the episode to learn more.

Phil Dunne

Partner

Grant Thornton Stax Honored with Prestigious OnCon Icon Top 100 Award

Wed, 22 Oct 2025 19:26:39 GMT

Robert Lytle

Senior Managing Director

Phil Dunne

Managing Director

October 22, 2025 – Grant Thornton Stax , recognized for its excellence in marketing, has been awarded the esteemed OnCon Icon Top 100 award. The OnCon Icon Awards celebrate outstanding achievements of top organizations and teams worldwide.

This prestigious recognition is determined through peer and community voting. Voters are instructed to select teams they have seen make a significant impact on their own organization or within the broader industry, contribute to their professional community through thought leadership, drive innovation, and demonstrate exceptional leadership.

Grant Thornton Stax’s commitment to excellence, innovation, and marketing leadership has distinguished it as a top-performing team. Notable achievements include launching a scalable thought leadership platform, earning over 30 industry awards, and driving measurable brand visibility and revenue growth across global markets.

For more information about the OnCon Icon Awards and to view the full list of winners, click here.

Grant Thornton Stax Provides Sell-side Support to TrustArc on its Acquisition by Main Capital Partners

Wed, 22 Oct 2025 13:18:56 GMT

Grant Thornton Stax congratulates TrustArc , a leading provider of privacy compliance and data protection solutions, on its acquisition by Main Capital Partners . We are proud to have supported TrustArc, a former Bregal Sagemount portfolio company, on the sell side, working closely with its management team and investment bank, Moelis, throughout this successful transaction.

TrustArc is shaping the future of privacy in the age of AI. With more than 28 years of global experience in privacy compliance and assurance, we offer the industry’s only platform that unites regulatory intelligence, automation, and artificial intelligence to deliver comprehensive data governance from end to end.

From automated data subject request (DSR) fulfillment and AI risk evaluations to dynamic compliance reporting, TrustArc empowers organizations to build trust into every interaction. Based in the San Francisco Bay Area and operating worldwide, our privacy-first solutions enable responsible innovation, reduce risk, and give businesses the confidence to navigate an ever-changing regulatory landscape.

Contact the Grant Thornton Stax team to learn more:

Roy Lockhart

Partner

Will Barden

Partner

Owen Tindle

Managing Director

Director

About Grant Thornton Stax

Six Cybersecurity Themes Private Equity Investors Should Know Leaving 2025

Mon, 20 Oct 2025 19:53:07 GMT

Marissa Licu rsi

Director

Tyler Michaels

Director

Yiwei Jiang

Director

Name

Position

Name

Position

Name

Position

Cybersecurity is undergoing a structural transformation in 2025, driven by regulatory pressure, cloud adoption, AI innovation, and evolving threat vectors. Grant Thornton Stax has compiled this report outlining several key investment themes, based on our prior work with cybersecurity assets throughout 2025 to date. These themes highlight where capital is flowing and where differentiated capabilities are emerging.

1. Cyber Compliance: Software and Service Strategic Growth Drivers

As regulatory frameworks such as CMMC, ISO 27001, SOC 2, and HIPAA evolve, cybersecurity vendors and service providers with embedded compliance capabilities are gaining traction, particularly in regulated industries like financial services and insurance. This trend is being accelerated by cyber insurance providers, who increasingly require baseline security controls and offer premium discounts for adherence to recognized standards.

Demand for compliance services (i.e., gap assessments, control design, and audit readiness) is also rising. Compliance-as-a-service platforms, such as Vanta and Drata, are lowering the barrier to entry (i.e., reducing costs, automating log gathering), even for small and mid-sized firms. As a result, compliance is now a board-level concern and a key driver of cybersecurity purchasing decisions.

Key Drivers:

Regulatory expansion across industries is increasing demand for compliance-aligned products and services.
Cyber insurance providers are enforcing stricter security requirements and incentivizing compliance through premium discounts.
Compliance-as-a-service platforms are democratizing access to attestation and audit readiness.

Market Commentary:

“Almost half of the motivation to purchase MDR services is driven by regulatory compliance as buyers fear the auditor more than the attacker.” — Chief Strategy Officer, Cyber Compliance Vendor

“Insurers are making recommended MDR providers lists…promising a 30% reduction in premiums if clients use Arctic Wolf.” — Director Enterprise of Sales, MDR Vendor

“Expansion of frameworks is driven by organizations applying more rigor to vendors due to cyber insurance coverage requirements.” — VP Cybersecurity, Cyber Industry Analyst

“Compliance-as-a-service tools like Vanta and Drata have made SOC 2 and ISO 27001 more accessible, even for small firms.” — Senior Manager, Cyber Compliance Service Provider

Marissa Licursi

Director

Tyler Michaels

Director

Yiwei Jiang

Director

2. SASE: The Convergence of Networking and Security

Secure Access Service Edge (SASE) is becoming the architecture of choice for distributed enterprises, combining security service edge (SSE) capabilities (e.g., CASB, SWG, and ZTNA) with SD-WAN. This convergence is driven by cloud migration, remote work, and the need to simplify fragmented networking and security environments.

Key Drivers:

Enterprises are consolidating networking and security stacks for operational efficiency.
SASE platforms are evolving to include digital experience monitoring and GenAI-enhanced DLP.
Market leaders like Netskope and Zscaler are gaining share through innovation and bundling.

Market Commentary:

“The SD-WAN market is quickly giving way to SASE…think of it as SD-WAN plus security.” — Fmr. Group VP, Cloud-Ready Data Center, Cyber Vendor

“Nobody will buy SD-WAN without a security component in two to three years.” — Fmr. Head of Global Sales Engineering, Cyber Vendor

“With no on-site servers, we rely entirely on internet connectivity which makes SASE extremely important.” — Cloud Security Lead, Enterprise Firm

3. Agentic AI: Blooming Table Stake in Threat Detection & Response

While embedded AI has long been used to enhance analytics and automation, the rise of agentic AI signals a change: systems that can autonomously execute tasks, coordinate across tools, and continuously learn from outcomes.

In SOC operations, this means moving from “AI-assisted” detection toward “self-directed” remediation, playbook orchestration, and intelligent escalation, capabilities that are quickly becoming standard across platforms. Industry analysts underscore this shift; Gartner ranks GenAI as the top cybersecurity trend, Forrester highlights AI’s role in transforming SOC workflows, and IDC reports that 74% of enterprises have deployed AI-powered detection tools.

Key Drivers:

AI is enabling faster, more accurate threat detection and response.
VARs, MSPs and MSSPs are leveraging Agentic AI to offer scalable services.

Market Commentary:

“AI is a real facilitator…it can make low-value tasks efficient and help VARs build out SOC capabilities.” — Director, Cyber Vendor

“We're approaching a new era where fully automated and agentic AI will conduct much of the security research. In this future state, tool integration might become less critical as AI systems will aggregate data from various sources and present it through a unified interface. This evolution might lead some organizations to migrate away from traditional integrated platforms as new agentic companies emerge offering superior value propositions.” —Chief Security Technologist, Global VAR

4. Email Security: Critical and Evolving Vendor Landscape

Email remains a top attack vector, but the category is under increasing pricing pressure due to the bundling of Microsoft Defender and intensified competition. The category has evolved from static filtering and batch updates to dynamic, AI-driven detection with seamless integration (i.e., Abnormal Security).

As enterprises face mounting pressure from DMARC mandates and growing phishing threats, vendors like Valimail are gaining traction by offering centralized, automated control over domain-level email authentication, an increasingly critical component of enterprise security infrastructure.

Key Drivers:

DMARC mandates and phishing threats are elevating the importance of domain-level email authentication.
Microsoft Defender’s bundling is eroding standalone vendor pricing power.
API-based, AI-enhanced email security is becoming the new standard.

Market Commentary:

“Email is the most attacked platform—it's where most social engineering and attacks originate, making it a huge space. We're seeing new email security companies emerge, but these companies need to be truly significantly different to succeed.” – Chief Security Technologist, Global VAR

“As email security becomes more robust, threat actors are pivoting to other communication channels like Microsoft Teams and Slack. ICES providers are responding by extending their security coverage to these adjacent platforms. This expansion is technically complex and relies heavily on APIs, giving ICES players with existing API-based platforms a first-mover advantage” – Fmr. CMO, Email Security Vendor

5. Cyber-Focused VARs: Trusted Advisors in a Complex Market

Specialized cybersecurity VARs are gaining share from broadline resellers due to their technical depth, vendor relationships, and ability to deliver high-touch advisory services. As cybersecurity needs grow more complex, driven by evolving regulations, advanced threats, and bespoke architecture requirements, organizations increasingly rely on VARs for consultative sales, integration support, and lifecycle management.

Key Drivers:

VARs differentiate through deep technical expertise and vendor partnerships.
Buyers value pre-sales engineering and implementation support.
VARs help vendors navigate complex buying centers and deployment processes.

Market Commentary:

“Specialized VARs are strongly preferred…they ensure proper service delivery and maintain partnerships with prominent security providers.” — CIO/CISO, Enterprise firm

“I expect to get more from cybersecurity VARs…I see more spending shifting to cybersecurity vendors and less to the other two categories.” — Director of Information Security, Mid-market firm

“What really makes a difference is the capability to do pre-sales…we’ve often chosen a VAR because of their very skilled pre-sales engineer.” — Director, Cybersecurity Vendor

6. Shift Left in Cyber Services: MSPs and VARs Adding Cybersecurity Services

The line between MSPs, VARs, and MSSPs is blurring. More partners are offering managed detection and response (MDR), compliance-as-a-service, and 24/7 SOC capabilities. This shift is especially pronounced among SMBs and mid-market firms, which face increasing cyber threats but lack the internal resources to build robust security programs. Gartner and Forrester both note the rise of MSSP-lite models. SMBs and mid-market firms increasingly prefer bundled services from a single provider.

Key Drivers:

SMBs are adopting MSPs for comprehensive cybersecurity services.
VARs are evolving into hybrid vendors offering managed services.
MSSP-lite models are gaining traction as firms seek bundled solutions.

Market Commentary:

“Clearly, we see increasingly VARs, especially the smaller local ones, are now already working as MSSPs. This has been a trend we've observed for the past two to three years, because that's the way VARs are going to grow their business. — Director, Cyber Vendor

“Commercial businesses and small to medium-sized businesses (SMBs) are more likely to prefer a full suite provider. Even if such a provider is not very good in one area, the ability to manage everything in one swoop is appealing.” — VP Revenue & Sales, MSP

About Stax

Now part of Grant Thornton Advisors LLC, Stax is a global management consulting firm serving corporate and private equity clients across a broad range of industries including software/technology, healthcare, business services, industrial, consumer/retail, and education. The firm partners with clients to provide data-driven, actionable insights designed to drive growth, enhance profits, increase value, and make better investment decisions. Please visit www.stax.com and follow Stax on LinkedIn , Instagram , Threads , and Facebook .

About Grant Thornton

In January 2025, Grant Thornton Advisors LLC formed a multinational, multidisciplinary platform. The platform offers a premier advisory and tax practice, as well as independent audit practices. With almost 60 offices, the platform delivers a singular client experience that includes enhanced solutions and capabilities, backed by powerful technologies and a roster of almost 14,000 quality-driven professionals enjoying exceptional career-growth opportunities and a distinctive cross-border culture.

Grant Thornton is part of the Grant Thornton International Limited network, which provides access to its member firms in more than 150 global markets. 

Robert Lytle and Phil Dunne Named Among The Consulting Report’s Top 25 Private Equity Consultants and Leaders of 2025

Mon, 20 Oct 2025 19:41:24 GMT

Robert Lytle

Senior Managing Director

Phil Dunne

Managing Director

Robert Lytle

Partner

Phil Dunne

Partner

The Consulting Report is pleased to announce The Top 25 Private Equity Consultants and Leaders of 2025. Private equity has become one of the most powerful forces in the global economy, fueling company growth, driving innovation across industries, and shaping the strategies of corporate titans. As the asset class has expanded—reaching trillions of dollars in assets under management—its influence on job creation, competitiveness, and long-term value has also grown.

Behind this expansion are advisors who help firms deploy capital wisely and ensure portfolio companies deliver on their potential. The individuals recognized here are those trusted voices: leaders who validate investments, identify risks, and design strategies that accelerate scaling and transformation. Their work links the flow of private capital with real outcomes in sectors such as technology, healthcare, consumer goods, and industrials—demonstrating why private equity matters not only to investors but to the wider economy.

Among this year’s awardees, Rachel Barton, Senior Managing Director at Accenture, stands out for leading the firm’s global Private Equity business and helping investors and executives navigate the full deal lifecycle—from diligence through exit—while driving growth, innovation, and large-scale transformation. Sean McDevitt, Partner at Arthur D. Little, is recognized for guiding private equity firms, infrastructure funds, and lenders through high-stakes investment decisions, applying three decades of international consulting and operations experience to due diligence, market assessments, and portfolio value creation.

Also recognized is Amit Vij, Global Head of Private Equity at Tech Mahindra, who has built and scaled private equity practices across multiple organizations, leading global teams that help investors and portfolio companies drive value through digital transformation, cost efficiency, and sustainable growth.

Robert Lytle

Partner

Phil Dunne

Partner

Grant Thornton Stax Advises Accel-KKR on its Strategic Growth Investment in Phocas Software

Mon, 20 Oct 2025 14:15:43 GMT

Grant Thornton Stax congratulates Accel-KKR on its recent strategic growth investment in Phocas Software , a leading Business Intelligence and Financial Planning & Analysis (BI and FP&A) platform for the middle-market. We are proud to have provided our investment advisory support to Accel-KKR.

Built specifically for manufacturing, distribution, and retail companies, Phocas integrates with leading industry ERPs to unify multiple data sources into one intuitive platform. This enables teams to access reliable, real-time insights that power smarter planning, in-depth analysis, and more informed decision-making across the business. In 2024, BARC’s Planning Survey recognized Phocas as a global leader in product innovation across both business intelligence (BI) and financial planning and analysis (FP&A) for the mid-market sector. Today, over 2,800 organizations worldwide rely on Phocas to connect their data, gain clarity, and collaborate more effectively.

Contact the Grant Thornton Stax team to learn more:

Palash Misra

Roy Lockhart

Partner

Kelsey Chisholm

Partner

Dan Chen

Director

About Grant Thornton Stax

Featured by TechTarget—Embedding ESG into IT strategy: Insights for IT leaders

Wed, 15 Oct 2025 18:15:03 GMT

Anuj A. Shah

Head of ESG & Impact Advisory

This article was originally featured on " TechTarget " and was written by Tim Murphy.

CIOs have become key players in advancing environmental, social and governance (ESG) goals.

Technology strategy underpins many aspects of ESG, including how organizations track greenhouse gas emissions and report progress to regulators and investors. IT leaders must find ways to reduce the environmental footprint of their own infrastructure and embed sustainability data into day-to-day business workflows and systems.

Anuj Shah, head of responsible investing at Grant Thornton Stax consulting firm, works with enterprises to operationalize ESG through data management, technology modernization and AI-driven analytics. In the following interview, he explains how IT leaders can make ESG measurable and meaningful -- and why aligning sustainability with business outcomes is often the most effective approach.

Editor's note: This transcript was edited for length and clarity.

Anuj A. Shah

Head of ESG & Impact Advisory

How can IT leaders align their technology strategy with ESG and sustainability goals?

Anuj Shah: IT managers will be responsible for the hardware and software within the organization. IT operations consume a lot of energy, so there's that level of greening IT operations -- that's one level.

On the other side, there is a level of integrating ESG factors -- or sustainability data -- into workflows. If a company identifies financially meaningful ESG KPIs for its business, it must track that data. Let's say it's something related to a supply chain -- then you want to look at your supply chain software and determine whether those KPIs can be tracked through your existing software, whether you need an upgrade, an add-on or a different vendor.

What are the most common IT-led ESG and sustainability initiatives you see across industries?

Shah: I'm noticing a trend this year that I call 'connecting the dots around ESG.' ESG starts with disclosed data from a company. Investors sit downstream from that, consume that data and can introduce it into an investment process. For companies themselves, just disclosing that data is not very useful.

However, there are regulations across the globe. For instance, if you operate in the EU, there's the corporate sustainability reporting directive that requires companies to make almost 900 data points of disclosure. If you just disclose that information, it may be decision-useful to investors, but the company still needs to put a strategy around it to advance the needle on sustainability.

We're seeing more companies ensure their third-party or supply chain risk management software includes features that drive measurable ROI, improve workflow efficiency and save employees' time.

Why is measurable ROI becoming more central to ESG initiatives?

Shah: Under the current U.S. administration, there is little support for ESG measures. In Europe, there is a heavy-handed approach to regulations. These two polar opposites are present, but there is the same narrative within the two geographies.

In the U.S., ESG advisers tell clients to focus on the business case of sustainability. In Europe, you hear the same thing because it's overly regulated. However, its regulations are not necessarily moving the needle because people see sustainability as a check-the-box exercise. It's an interesting paradox between these two geographies -- polar-opposite approaches, but both are focused on the business case.

What is AI's role in ESG reporting?

Shah: AI can certainly make this a lot easier. It can simplify the handling of large amounts of ESG data and turn it into actionable insights. A lot of what's held the sustainability space back is that it can be confusing when you're talking about scope 1, scope 2 and scope 3 emissions disclosures. AI can make a lot of that easier to understand. It can compress workflow so you can get decision-useful information much quicker than in a pre-AI world. To me, this is exciting.

We have developed a few proprietary tools within Grant Thornton Stax to help our clients with analysis. As little as three years ago, I used to do a type of workload for clients that would take my firm about four weeks. I can now do that exact same analysis with AI in 30 seconds.

How should CIOs prioritize ESG projects when their budgets and resources are limited?

Shah: CIOs should start with where money is already being spent. If you are already spending on third-party software, I would see whether that software has sustainability reporting capabilities already built into it. This approach doesn't require you to ask for an additional budget or for some new software or process that would require a brand-new workflow.

What are the biggest challenges that IT teams face when implementing a sustainability program?

Shah: The biggest challenge is making sure that sustainability becomes business as usual -- not just a pet project. When you focus on areas where the company is already spending money, such as existing software or processes, it's easier to add sustainability practices there rather than starting something completely new. If you are trying to convince the powers that be within your organization to spend a lot of money to get this done, there's a higher likelihood of failure.

Focus on the business case and really try to determine how you can narrow your focus. If you take a broad approach to sustainability, you probably will end up losing support within an organization. People change roles every couple of years, and someone will look at it and say, 'We're spending money on this, and I don't see the ROI. Let's kill this program.' Focus on the two to three things that matter the most -- where the business case is very clear.

How can IT teams ensure that ESG data is accurate and reliable for reporting purposes?

Shah: For ESG data to have credibility, we want to get it assured by a third party. ESG data that has been verified by a third party is much more credible in the marketplace.

The challenge with that is there's a cost involved. That means bigger firms can afford to do it, and smaller firms may disclose data, but it's not assured.

Do you recommend any governance or compliance frameworks for managing ESG data across multiple regions or business units?

Shah: We think about it more in terms of best practices. For instance, it must be discussed in the appropriate meetings, on the agenda and on the C-suite's radar.

Investors certainly do look at the governance models around sustainability within an organization. It's not uncommon, particularly in firms in certain industries, to see the role of a chief sustainability officer within the C-suite of an organization. That's instant credibility, because it shows that there's someone who's accountable for the performance within an organization.

How should IT leaders collaborate with other executives, such as chief sustainability officers, to ensure the success of their sustainability initiatives?

Shah: They must cooperate to set clear targets and define what they want to achieve. It sounds basic, but it often goes overlooked. Companies can jump very quickly to the data and to improving performance on the data. However, it's worth taking a step back and ensuring that everyone is on the same page in terms of what they're trying to accomplish. Then, set the strategy around achieving those goals, and make sure you have governance around that, and people are accountable.

Featured by MT Newswires: Private Equity Flees Carriers, Embraces Freight Tech in 2025

Tue, 14 Oct 2025 19:42:04 GMT

The transport and logistics sector is experiencing one of its sharpest investment realignments in years. Private equity deal values sank to $3.5 billion in Q2 2025, their lowest point since early 2024, but freight tech deals told a different story. Investors are abandoning asset-heavy carriers and are instead chasing scalable platforms that blend software with supply chain strategy. Freight forwarders and digital operators are winning attention for their ability to grow margins without expanding physical assets, while AI and automation are helping transform logistics into a high-return, tech-driven ecosystem.

In MT Newswires recent article, Brad Kuntz, Partner, discussed the impact of Trump tariffs on the market and how this has impacted deal volume.

“The Q2 2025 pullback was likely a function of owners pausing on bringing assets to market during both a shipping rate downcycle and period of high consumer uncertainty brought on by the Trump Administration's tariffs.”

-Brad Kuntz, Partner, Industrials

"The Q2 2025 pullback was likely a function of owners pausing on bringing assets to market during both a shipping rate downcycle and period of high consumer uncertainty brought on by the Trump Administration's tariffs."

-Brad Kuntz, Partner, Industrials

Featured by Reuters: Ferrari Lifts the Hood on EV Tech in Maiden Electric Car

Fri, 10 Oct 2025 16:07:57 GMT

Ferrari has officially revealed the powertrain for its first all-electric car, the Elettrica, marking a milestone moment for the Italian automaker.

Unveiled at its Maranello headquarters, the production-ready chassis showcases Ferrari’s approach to electrification: preserve emotion and performance, even without combustion. Expected to debut next year, the four-door Elettrica is Ferrari's highly anticipated entrance into the EV space, creating commotion amongst consumers and competitors. While rivals like Lamborghini and Porsche wrestle with timing and demand, Ferrari is betting that wealthy younger buyers will see electric power as the next frontier in luxury performance.

Phil Dunne speaks on the slow initial demand and how Ferrari's strength is to offer consumers the same strong performance they come to expect from their gas counterparts.

Read the full Reuters article below, or by clicking here .

"If their customers want to be environmentally friendly today, they can have a Tesla, they can have some other EV. Teslas can give you an amazing feeling of power, but it doesn't feel anything like a Ferrari."

- Phil Dunne , Partner, Industrials

"If their customers want to be environmentally friendly today, they can have a Tesla, they can have some other EV. Teslas can give you an amazing feeling of power, but it doesn't feel anything like a Ferrari."

- Phil Dunne , Partner, Industrials

Know Your Buyer, Grow Your Margin: A Case for Segment-Specific Pricing

Fri, 10 Oct 2025 15:46:55 GMT

Alex Erines

Director

Today, private equity firms are laser focused on identifying value creation levers that can deliver tangible and measurable EBITDA impact. While growth levers like sales acceleration or product expansion are commonly pursued, pricing remains one of the most impactful, yet consistently underleveraged, drivers of value in B2B companies.

Before thinking about flashy usage-based models, it’s essential to deeply understand who your customers are and what they’re willing to pay. These insights become the foundation for future strategic pricing initiatives that drive profitable revenue growth.

The Problem with One-Size-Fits-All Pricing

Alex Erines

Director

Many B2B companies, especially those in the growth stage, operate with pricing models that reflect internal views of cost structure or competitive benchmarking—not actual customer value perception. Such an approach typically leads to two sub-optimal outcomes:

Overcharging price-sensitive segments and driving churn.
Undercharging power users who see massive value but aren’t being priced accordingly.

The result is margin erosion and a missed opportunity to capture full value potential.

Go Deeper Than Demographics

Effective value-based segmentation goes beyond standard firmographics like company size or industry. We consider behavioral and psychographic variables that directly inform willingness-to-pay (WTP), such as:

Job-to-be-done: What problem is the buyer solving?
Workflow integration: How embedded is the product in their day-to-day?
Risk exposure: What are the implications if the tool fails?
Budget ownership: Is the buyer a department lead, IT, or procurement?

These variables provide true insight into pricing power and collectively paint a clear picture of customer WTP.

Grant Thornton Stax Case Studies

Case Study 1

In one engagement, Grant Thornton Stax partnered with a SaaS provider operating in the insurance sector. Our research uncovered that agencies who prioritized automation and reporting capabilities were willing to pay significantly more for these advanced features. By contrast, agencies with manual workflows were more price-sensitive and less engaged with premium modules.

This led to segment-specific GTM and pricing strategies, including the introduction of targeted messaging and customized packages aligned to each segment’s workflow maturity and appetite for digital transformation. These changes resulted in a more efficient funnel, improved customer retention, and increased attach rates on premium product modules.

Case Study 2

We also worked with a K-12 transportation services provider whose pricing was uniform across all districts. Our research showed meaningful variation in price sensitivity tied to local vendor competition, perceived student safety outcomes, and procurement sophistication.

We developed a new pricing model that introduced differentiated pricing and an accompanying price guidance tool for the sales team. With these new capabilities, our client was able to expand share in highly competitive districts while protecting margin in high-WTP accounts.

Operationalizing Segment-Based Price Differentiation

Our structured approach quickly translates WTP insights into margin impact:

Quantitative WTP Research: Use advanced analytics (e.g., conjoint, MaxDiff) to quantify what each segment values and how pricing influences their behavior.
Customer Segmentation Model : Start with hypotheses about what drives value perception and buying behavior differences, then validate through qualitative and quantitative data (e.g., survey data, usage patterns, internal performance data). Identify segments that are both analytically significant and commercially actionable.
Price-Metric Alignment: Align pricing structure to how each segment realizes value. Balance precision with commercial feasibility to maximize price realization.
Segment-Tailored Messaging: Develop sales playbooks that enable frontline sellers to articulate a compelling value proposition for each unique customer segment.

Conclusion

Pricing isn’t just about what you charge, it’s about how well you understand your customer. In commercial diligence, segment-based WTP insights serve as an early indicator of pricing headroom. In ownership, they unlock segment-specific pricing strategies that expand margin with minimal disruption.

Want to know if your portfolio companies are leaving pricing value on the table?

We help investors and management teams identify where pricing power exists, and how to translate insights into actionable strategies that drive measurable results. Visit our Insights page or contact us directly to learn more .

Featured in Pitchbook: Transatlantic Growth — How a UK Cybersecurity Firm Unlocked the US Valuation Premium (A Business Fable)

Wed, 08 Oct 2025 20:20:15 GMT

Andre w Keller

Managing Director

Andrew Keller, Managing Director at Grant Thornton Stax, has 15 years in strategy consulting and commercial due diligence and six years in corporate finance and strategy.

This article was featured in Pitchbook's Q3 2025 European PE Breakdown report . This article describes a hypothetical company. The story is fictional, but the challenges and strategies are based on real-world insights from Grant Thornton Stax’s work with European software firms pursuing US growth and valuation premiums.

SecuraTech, a cybersecurity company, was quietly building its reputation and had carved out a stronghold across Western Europe, protecting middle-market enterprises from escalating cyberattacks. By the time a private equity sponsor came on board, the firm was profitable, nearing £100 million in annual recurring revenue, and had expanded beyond its UK roots into Germany and the Nordics, serving several household-name clients.

Yet despite its success, the founders and early investors knew the valuation ceiling in Europe. Multiples in London or Frankfurt rarely compared with those achieved in New York. Grant Thornton Stax has found that US software-as-a-service (SaaS) firms consistently commanded valuation multiples 60%-100% higher than their European peers in recent years. The data confirmed what the leadership team had long suspected: In order to achieve US-style multiples, SecuraTech needed to cross the Atlantic.

The initial US opportunity

Andrew Keller

Managing Director

Andrew Keller, Managing Director at Grant Thornton Stax, has 15 years in strategy consulting and commercial due diligence and six years in corporate finance and strategy.

The breakthrough came via an existing client, a Fortune 500 company headquartered in the US, with its UK locations already served by SecuraTech. What began as a London-based contract grew into a NYC opportunity. The founders saw the Atlantic corridor opening—if one US-based multinational was willing to adopt its platform, surely others would follow.

In boardrooms, talk turned to US growth. Slides pointed to the massive total addressable market in North America. Grant Thornton Stax analysis shows that US enterprises account for nearly half of global cybersecurity spending . The logic was compelling: Scaling there could reframe SecuraTech’s valuation entirely.

Flush with optimism, the leadership team began telling investors: “We’re in the US now.”

But the reality was less triumphant. One US customer, however prestigious, was not the same as a US business. Sales cycles dragged. Competitors had deeper relationships and larger teams. US compliance requirements, from Systems and Organization Controls (SOC) 2 to HIPAA, demanded costly investment.

Worse still, investors weren’t convinced. As Grant Thornton Stax’s recent article, Unlocking US Growth: Why European PE-Backed Software Firms are Eyeing Expansion Stateside , points out, “A single logo does not constitute market traction.” Instead of boosting SecuraTech’s valuation, the US presence was dismissed as opportunistic.

The hoped-for US valuation premium never materialised.

The setback forced introspection. The leadership realised they had treated US expansion as a byproduct of luck rather than a deliberate strategy.

They revisited the fundamentals:

Market understanding : Grant Thornton Stax analysis stresses the need to segment the US market carefully, identifying winnable niches rather than attempting blanket entry.
Sales model : Its European go-to-market motion didn’t resonate with US buyers, who demanded rigorous return on investment proof points.
Investor perception : Without a growth story grounded in strategy and evidence, valuations were still tied to European comparables.

The message was clear: To unlock US valuations, SecuraTech needed to redefine its strategy from the ground up.

Revamping the strategy

The turnaround began with humility. The firm acknowledged that one US customer was not a strategy. Instead, it designed a plan around three pillars:

1. Targeted US market entry

Rather than tackling the entire US, SecuraTech identified specific customer segments where its solution had an edge: middle-market financial institutions underserved by legacy players. This mirrored guidance in Grant Thornton Stax’s thought piece Financial Services and Transatlantic: Why UK PE Investors Should Look West for Exits , which highlights financial services as a natural fit for UK software firms expanding west.

2. Local presence and talent

The company hired a seasoned US sales leader with a track record of scaling cybersecurity businesses. It opened a small East Coast office to support customer success and compliance. These moves signalled seriousness to both customers and investors.

3. Building investor access

Perhaps most importantly, SecuraTech began cultivating US investor relationships early. Grant Thornton Stax’s article Is Your Exit Strategy Targeting the US Market Premium notes that engaging US growth equity and private equity well ahead of a transaction helps shift valuations from European to US benchmarks.

18 months later, the results were evident. SecuraTech had moved beyond its original anchor client to win a portfolio of US customers across multiple states. US revenues now represented nearly one-quarter of the business.

Operationally, the company had invested in compliance, scaling its infrastructure to meet US buyer expectations. Strategically, it had sharpened its pitch, focusing on the expanding US middle-market financial cybersecurity spending.

When the company re-engaged with investors, the tone had shifted. No longer dismissed as a European firm dabbling in the US, SecuraTech was viewed as a credible transatlantic growth story. And with that came a new benchmark: valuations anchored against US cybersecurity peers, not just European ones.

Success at exit

By the time its private equity sponsor explored an exit, SecuraTech was positioned for both European and US buyers. US strategics saw the business as a foothold into Europe; US growth equity funds valued its proven expansion model.

The process generated real competition. US buyers were willing to price off US multiples, lifting offers materially above what a Europe-only process might have achieved. The eventual transaction closed at a valuation multiple far exceeding initial expectations.

SecuraTech’s journey offers a blueprint for other middle-market European software firms. The US valuation premium is real, but it cannot be unlocked by accident.

The premium is earned by:

Crafting a credible US growth story : Quantify the size of the opportunity with data, show early traction in revenue or customer wins, and highlight how the business model scales beyond a niche. The narrative must connect strategy with proof points.
Building US readiness : Put real foundations in place: Hire local commercial and leadership talent who understand the market, adapt compliance and governance frameworks to US standards, and ensure operational infrastructure can handle rapid growth. Investors look for more than intent; they look for readiness.
Engaging US investors early : Develop relationships well before an exit. Early conversations shift the frame of reference from European peer multiples to US comparables, giving management time to educate investors and build conviction around the growth story.

For private equity sponsors, embedding this strategy into value-creation plans can materially influence exit outcomes. For founders, it is the difference between being valued as a regional player and as a global contender.

The Atlantic is no longer a barrier—it is a corridor. For European software firms, the US remains the destination where ambition meets valuation. But as SecuraTech’s journey shows, crossing that corridor requires more than luck. It requires strategy, preparation, and the right story told to the right investors.

Changing the Game: Emerging Investment Opportunities in Youth Sports

Mon, 06 Oct 2025 18:37:21 GMT

Owen Tindle

Managing Director

Luke Scheibel

Director

Name

Position

Name

Position

Name

Position

Youth sports in the US have quietly become a multi-billion dollar industry, rapidly evolving into a sophisticated, tech-enabled ecosystem.

A wave of professionalization, digital transformation, and integrated platform models is unlocking additional monetization opportunities that extend the traditional playbook. These opportunities not only drive revenue growth but also deepen engagement, strengthen retention, and create value for all stakeholders (i.e., athletes, parents, coaches, and recruiters) while positioning operators and investors to capture long-term value.

Market Outlook/Growth Drivers

Several converging trends are accelerating the potential for monetization growth in youth sports :

1. Pathways to Advancement

Families increasingly view youth sports as a gateway to advancement, whether that means improving athletic performance, gaining exposure to higher levels of play, or pursuing collegiate opportunities. This aspiration-driven dynamic makes investment in youth sports feel less discretionary and more essential, with parents prioritizing spend that supports long-term outcomes for their children. Notably, the Aspen Institute’s 2025 Project Play survey found that US “sports families” spent, on average, 46% more on their child’s main sport in 2024 than in 2019.

Opportunities for advancement are becoming more structured and data-driven. Beyond the traditional focus on college recruiting, families are turning to readiness programs, curated exposure opportunities, performance analytics, and athlete development portfolios. Demand is strong for platforms that deliver robust stat tracking, highlight reels, or verified scouting coverage, as well as tools that provide holistic support through training, nutrition, and mental conditioning resources. Collectively, these offerings expand the definition of “return on investment” in youth sports, blending athletic growth with future opportunity.

Competition for advancement continues to intensify, creating demand for tech-enabled solutions that both showcase athletes’ abilities and support their development. Families and coaches increasingly seek platforms that combine verified performance data, development tracking, and exposure tools, whether through scouting coverage, highlight reels, or integrated training insights. The solutions most likely to lead in this space will be those that deliver both credibility and breadth, helping athletes stand out while elevating the overall development experience.

Owen Tindle

Managing Director

Luke Scheibel

Director

2. Professionalization of Youth Sports Organizations:

Local sporting events/tournaments once run by volunteers are being replaced by multi-state, brand-driven operators with standardized formats, consistent quality, and professional staff. This shift is most visible in:

Consistent quality: Skilled referees, well-maintained venues, and reliable scheduling.
Brand credibility: Events are viewed as “must-attend” badges of competitiveness.
Content/scouting: Professional content engines produce highlight reels, player rankings, and sponsor activations, extending visibility well beyond the event itself.

For example, Triple Crown Sports takes over a convention center with approximately 400 courts, consolidating all activities in one location. This level of organization ensures efficiency and ease for participants and recruiters.

In the sports management software space, professionalization has manifested in transforming a landscape that once relied on fragmented, manual, or non-existent workflows into one offering pro-grade tools for scheduling, analytics, and communications . These capabilities, once reserved for collegiate or professional programs, are now accessible to club teams, elevating operational standards and enhancing the athlete, coach, and recruiter experience.

Monetization Levers: Opportunities for New Investment

Opportunities can be broken down by the key stakeholders in the youth sports ecosystem: athletes and parents, coaches, and recruiters.

Recent high-impact investments and industry deals across youth sports and adjacent sectors include:

Unrivaled Sports, youth sports venues and programming brands (e.g., Ripken Baseball), secured $120 million in funding led by Dick’s Sporting Goods in 2025, valuing the company at over $650 million, underscoring the growing professionalization in youth sports operations.
ScorePlay, an AI-powered content management system used by professional leagues like MLS but also by youth sports leagues like League One Volleyball, raised $13 million in Series A funding, with investors such as NBA star Giannis Antetokounmpo—highlighting convergence of pro-level tools and youth-facing sports content.
PureAthlete launched "PA+"—a premium subscription offering over 1,000 expert-led video lessons , live interactive sessions with college coaches, and curated content aimed at navigating today’s complex youth sports environment. This underscores growth in monetized content delivery for families and coaches.

Recent funding and platform innovations highlighting investment in this space include:

360Player raised $25 million in November 2024 from Five Elms Capital to fund global expansion. The platform offers video analytics, player development tools, team management, and financial services —strengthening subscription-based coaching and club management infrastructure.
Strava acquired Runna, a UK–based running coaching app, in April 2025, a move that expands its mobile coaching capabilities and aligns with the broader rise of digital coaching tools.

Recent strategic investments and acquisitions have strengthened leading recruiting platforms, enhancing features, reach, and data capabilities:

IMG Academy, in 2025 acquired SportsRecruits, integrating functionality with NCSA to deepen its youth recruiting ecosystem, enriching content, analytics, and tools for clubs and high-school teams.
NCSA (Next College Student Athlete), now under Endeavor Group Holdings, merged with BeRecruited in 2022, continuing its expansion through high-volume recruiting management and content services .

Conclusion

The youth sports market is entering a new monetization era. The leaders will be those who:

Professionalize the experience to elevate brand credibility.
Build interconnected networks between athletes, coaches, and recruiters.
Expand monetization beyond the field to capture recurring, defensible revenue.

For investors and operators, this is a nascent market to back category leaders positioned to become the infrastructure of youth sports. To learn more about youth sports, or Grant Thornton Stax expertise, visit www.stax.com/insights or contact us directly .

Grant Thornton Advisors Expands Multinational Integrated Platform to Include Grant Thornton in France, Spain and Belgium

Mon, 29 Sep 2025 15:34:58 GMT

Transactions enhance wealth of capabilities and seamless connections of unique platform
French firm serves impressive roster of European clients; ranks as one of the largest Grant Thornton firms worldwide
Spanish firm brings domestic leadership in key market
Belgian firm expertly serves clients at the heart of the European Union
In total, eleven of the fastest growing Grant Thornton member firms have now been welcomed into the integrated multinational platform

CHICAGO, PARIS, MADRID and BRUSSELS, September 29, 2025 – Grant Thornton Advisors LLC (Grant Thornton Advisors) today announced that Grant Thornton France, Grant Thornton Spain and Grant Thornton Belgium will be joining its rapidly growing platform.

The transactions with each firm underscore Grant Thornton Advisors’ seamless connectivity and capabilities across the Americas, Europe and the Middle East, building on the recently announced platform acquisitions of the Grant Thornton member firms in the United States, Ireland, the United Arab Emirates, the Netherlands, Switzerland, Liechtenstein, the Cayman Islands, Luxembourg and the Channel Islands.

Grant Thornton Advisors is supported by an investor group led by New Mountain Capital and initiated its multinational platform strategy in January 2025. The platform has pioneered a uniquely cohesive, multidisciplinary approach that delivers the highest quality cross-border services through a unified advisory and tax practice, as well as independent audit practices. With today’s announcement, eleven Grant Thornton member firms have banded together under a unified platform backed by the New Mountain Capital led investor group. And the platform looks to continue selectively welcoming the highest quality, most collaborative firms across strategic markets.

With the new additions, the Grant Thornton Advisors platform will accelerate growth in the French, Spanish and Belgian markets – representing high-value, strategic footprints that solidify the platform’s preeminence across Europe. Clients will benefit from access to an even more extensive array of industry expertise and innovative solutions, amplified by substantial investments in technology and talent.

Grant Thornton France stands as one of the premier accounting and advisory firms in a key global financial center. It has demonstrated consistent outsized growth, becoming one of the largest firms in the Grant Thornton International Limited (GTIL) network – with 2,800 employees across 24 offices.

The firm maintains a client roster ranging from CAC 40 and SBF 120 leaders to large corporations, as well as middle-market businesses. It is deeply respected for its commitment to quality, clients and customized solutions that drive measurable outcomes.

Similarly, Grant Thornton Spain is a significant, high-momentum member of the Grant Thornton network — with thousands of clients serviced by nearly 900 professionals across 10 locations. It has grown quickly thanks to its reputation for creative, forward-thinking solutions and deep sector expertise in areas such as financial services, mobility and energy.

Grant Thornton Belgium is an equally respected market leader rooted in globally strategic locations playing an integral role in the European Union. Its more than 250 professionals are deeply experienced in services related to cross-border mandates and mergers and acquisitions, as well as a range of audit, accounting, tax, legal and advisory needs.

In recent weeks, Grant Thornton Advisors has also announced transactions to enhance its advisory offerings. These include Auxis, a pioneer in outsourcing and business modernization services, and Stax, which specializes in commercial due diligence and value creation.

The entire Grant Thornton Advisors platform will continue to be part of the GTIL network, comprising member firms in more than 150 markets worldwide.

The transactions are all expected to close in the coming weeks.

Simpson Thacher & Bartlett LLP, Taylor Wessing, ECIJA, and EY Abogados provided transaction services to Grant Thornton Advisors. Major advisors to Grant Thornton France included: Sycomore Corporate Finance; Osborne Clarke; BakerHostetler; and Ogier. Grant Thorton Spain was advised by PwC and Baker McKenzie. The Belgian firm was advised by law firm Baker McKenzie.

Executive quotes

Jim Peko, CEO of Grant Thornton Advisors LLC: “Expanding the platform into France, Spain and Belgium is a defining chapter in our journey and represents a sea change in how our industry serves clients. We’re furthering our commitment to growth across services, industries and geographies. And we’re solidifying Grant Thornton as the platform of choice for talent and technology, underpinned by exceptional quality and our one-of-a-kind culture. We set out to build something bold and that’s exactly what we’re doing.”

Steve Tennant, managing partner at Grant Thornton Ireland: “Ireland was the first building block in Grant Thornton Advisors’ strategic multinational expansion, and we’ve seen firsthand the benefits of integrating our people, resources and client services into a unified platform. Adding France, Spain and Belgium builds on that momentum, creating an unmatched presence across the European Union and many other markets.”

Adam Nicol, president of Grant Thornton France : “France is one of the most active, rapidly evolving business markets on the continent — making this the ideal moment for our firm to execute our own transformation. Committed to quality and a truly unified approach, we are poised to rapidly accelerate our scale in Europe and deliver differentiated multidisciplinary offerings to our broad client base.”

Ramón Galcerán, president of Grant Thornton Spain : “Our team is very excited to be joining this multinational platform, which has already demonstrated clear benefits for its constituent firms. We look forward to dramatically enhancing our growth strategy with unparalleled access to technology, insights and capital at scale.”

Leslie Van den Branden, managing partner of Grant Thornton Belgium : “Joining this powerhouse platform marks a strategic step forward for our firm. It strengthens our ability to deepen global collaboration while remaining deeply connected to our local clients. Above all, it enables us to further invest in our people and our clients, and the technologies that strengthen our capabilities and empower our teams. With our proven expertise and strategic location at the heart of European business, we’re confident this important milestone will drive innovation and accelerate long-term growth.”

Andre Moura and Nikhil Devulapalli, managing directors at New Mountain Capital : “We couldn’t be more pleased to admit France, Spain and Belgium to the global unified platform. The visionary leadership of these firms embodies the best of Grant Thornton, and today’s news is yet another example of our commitment to invest in people, technology and expanded capabilities for the ultimate benefit of Grant Thornton’s clients. We’re just getting started.”

About Grant Thornton

Grant Thornton delivers professional services in the U.S. through two specialized entities: Grant Thornton LLP, a licensed, certified public accounting (CPA) firm that provides audit and assurance services ― and Grant Thornton Advisors LLC (not a licensed CPA firm), which exclusively provides non-attest offerings, including tax and advisory services.

In January 2025, Grant Thornton Advisors LLC formed a multinational, multidisciplinary platform. The platform offers a premier advisory and tax practice, as well as independent audit practices. With almost 60 offices, the platform delivers a singular client experience that includes enhanced solutions and capabilities, backed by powerful technologies and a roster of more than 14,000 quality-driven professionals enjoying exceptional career-growth opportunities and a distinctive cross-border culture.

Grant Thornton is part of the Grant Thornton International Limited network, which provides access to its member firms in more than 150 global markets.

About Grant Thornton France

Grant Thornton France is a leading Audit and Advisory group, bringing together more than 2,800 professionals across 24 offices in France. The firm operates across four core service lines: Audit, Advisory, Accounting & Reporting Advisory, and Tax & Legal.

With a mission to empower clients to unlock their full potential, Grant Thornton France delivers strategic insight, technical precision, and a collaborative approach. Combining international reach with deep local expertise, the firm provides agile and impactful support to a diverse client base, including dynamic companies, listed firms, public entities, and private businesses.

Grant Thornton France is a member firm of Grant Thornton International Ltd (GTIL) - one of the leading audit and advisory networks in the world. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide services to their clients and/or refers to one or more member firms. GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients.

About Grant Thornton Spain

With 40 years of experience in the Spanish market, Grant Thornton Spain is one of the leading professional services firms in the country, specializing in Audit and Assurance, Tax, Advisory, Legal, and Outsourcing. It has a team of 900 professionals spread across 11 offices nationwide: Madrid, Barcelona, Bilbao, Castellón, Las Palmas, Murcia, Pamplona, Valencia, Vigo, and Zaragoza. The firm is also part of Grant Thornton International, with 76,000 professionals operating in more than 150 markets worldwide.

About Grant Thornton Belgium

Grant Thornton Belgium is a full-service business advisor with strong expertise in audit, accountancy, tax and legal, and advisory. With over 250 employees across 7 locations in Belgium, we offer a full range of services to help clients of all sizes address the challenges and opportunities for growth.

Our local teams and member firms worldwide work and train together, sharing industry expertise and technical expertise, and a commitment to excellence.

For more information on Grant Thornton Belgium, please visit https://www.grantthornton.be/en/ .

About New Mountain Capital

New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit and net lease investment strategies with approximately $55 billion in assets under management. New Mountain Capital seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit newmountaincapital.com .

Grant Thornton US

Jon Rucket

T: +1 404 984 6249

E: jon.rucket@us.gt.com

Grant Thornton France

Agnes de Ribet

T: +33611233325

E: agnes.deribet@fr.gt.com

Grant Thornton Spain

Policarpo Aroca Oviedo

T: +34 91 576 39 99

M: +34 650 71 31 21

E: Policarpo.aroca@es.gt.com

Grant Thornton Belgium

Marleen Van den Broeck

T: +32 498 370 650

E: Marleen.VandenBroeck@be.gt.com

Grant Thornton Stax Provides Sell-side Support to Altus Commercial Receivables on its Acquistion by Astira Capital Partners

Mon, 29 Sep 2025 13:38:47 GMT

Grant Thornton Stax congratulates Altus Commercial Receivables , a leading provider of commercial receivables management solutions, on its acquisition by Astira Capital Partners. We are proud to have provided sell-side support to Altus, collaborating with their management team and investment bank, Guggenheim Securities, throughout this successful transaction.

Altus is a global provider of commercial receivables management and BPO services, helping businesses strengthen their credit-to-cash cycle. The firm supports CFO organizations in addressing challenges such as unpaid invoices and working capital pressures by combining deep industry expertise with advanced technology. Its approach integrates automation and data-driven analytics to simplify and accelerate both first- and third-party collections, ensuring security and compliance at every stage. Altus serves as a trusted partner to clients ranging from small enterprises to multinational corporations across diverse industries.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Lead

Will Barden

Partner

About Stax

Stax is a global management consulting firm serving corporate and private equity clients across a broad range of industries including software/technology, industrials, business and information services, healthcare and HCIT, consumer, and tradeshows and events.

Grant Thornton Advisors Closes Deal With Diligence and Value-Creation Provider Stax

Mon, 22 Sep 2025 15:27:59 GMT

CHICAGO and BOSTON, September 22, 2025 — Grant Thornton Advisors LLC (Grant Thornton Advisors) has closed its transaction to acquire Stax, a leading strategy consulting firm specializing in commercial due diligence, value creation and exit-planning services for private equity (PE) firms, as well as their portfolio companies and advisers.

The transaction, which was previously announced on August 19, adds Stax’s approximately 300 team members to the Grant Thornton Advisors multination platform, stretching from the Americas across Europe to the Middle East.

The acquisition elevates U.S.-headquartered Grant Thornton Advisors’ market-leading transaction advisory team by enhancing the breadth and depth of its M&A capabilities. Together, Stax and Grant Thornton Advisors now service almost 70% of the U.S.-based Private Equity International 300.

Three-decade-old Stax has grown rapidly in recent years, while maintaining high client-retention rates and lengthy stakeholder relationships. Its strength comes from serving many of the leading players in large-cap and middle-market PE, alternative investments and investment banking.

Grant Thornton Advisors established its multinational platform in January 2025. To date, transactions have been announced with several full-service accounting and consulting firms to join the platform, including those in Ireland, the UAE, Switzerland/Liechtenstein, the Netherlands, Luxembourg, the Cayman Islands and the Channel Islands. Additionally, Grant Thornton Advisors recently acquired Auxis, a U.S.-based leader and pioneer in outsourcing and business modernization services.

The platform is backed by an investor group led by New Mountain Capital, a growth-oriented investment firm with approximately $55 billion in assets under management.

You can read more about how Grant Thornton Advisors is joining forces with Stax in the August 19 press release announcing the transaction.

About Grant Thornton

In January 2025, Grant Thornton Advisors LLC formed a multinational, multidisciplinary platform. The platform offers a premier advisory and tax practice, as well as independent audit practices. With almost 60 offices, the platform delivers a singular client experience that includes enhanced solutions and capabilities, backed by powerful technologies and a roster of more than 14,000 quality-driven professionals enjoying exceptional career-growth opportunities and a distinctive cross-border culture.

Grant Thornton is part of the Grant Thornton International Limited network, which provides access to its member firms in more than 150 global markets.

About Stax

Stax is a global strategy consulting firm specializing in commercial due diligence, value creation, and exit planning for private equity firms, PE-backed companies, hedge funds, and investment banks across a broad range of industries including software/technology, industrials, business services, healthcare, consumer, and the events ecosystem. The firm partners with clients to provide data-driven, actionable insights designed to drive growth, enhance profits, increase value, and make better investment decisions.

Featured by Raymond James: Packaging, Paper, and Plastics Quarterly Market Update

Mon, 22 Sep 2025 08:59:25 GMT

Raymond James has partnered with Grant Thorton Stax, a global consulting strategy firm, for this edition of Packaging Insights.

Across the US, recycling rates have stalled due to a lack of innovation and improvement throughout the lifecycle. While certain areas, such as plastics, have seen modest improvements from regulations and technologies, materials such as aluminum and paper are struggling to keep up. Inversely, Stax has observed how foreign recycling programs (specifically in Germany) are seeing widespread success, demonstrating that these programs can thrive if given the proper support and infrastructure.

Private investment has become the key to expanding and developing the US recycling industry. Our team of experts have compiled this report exploring the strong commercial opportunities available to those seeking an investment that makes an impact in more ways than one.

Download the full Raymond James report below.

Brad Kuntz

Partner

Anuj A. Shah

Partner

Joel Slater

Managing Director

Why Should Investors Consider Investing in Digital Engineering?

Thu, 18 Sep 2025 17:09:58 GMT

Tyler Michaels

Director

The Pentagon defines digital engineering as “an integrated digital approach that uses authoritative sources of systems’ data and models to support lifecycle activities from concept through disposal.”

In practice, digital engineering incorporates data throughout the engineering lifecycle to make decisions and process physical assets intelligently based on computer-based models and real-life feedback loops. This is done through leveraging simulations in lieu of physical prototypes for design and testing, which enables engineers to iterate faster and catch issues earlier. This approach is becoming central to modern industries as organizations seek to reduce development time, costs, and risks while improving product quality.

Tyler Michaels

Director

Given the fragmentation of the digital engineering market, investors need to consider specific questions as the right-to-win varies and presents nuanced risks across the different types of asset.

IT Services and Consulting Market Landscape:

The digital engineering lifecycle leverages different products and services through each stage but the reliance on a unified data stream enabling informed decision making is consistent throughout.

There are certain digital engineering practices that have broad applicability across industries, but the greatest impact is seen in asset-intensive sectors, where the ROI has been well demonstrated:

Aerospace and Defense: Boeing and the US Air Force deployed Digital Twins for fighter jets to continuously monitor aircraft systems using Internet of Things (IoT) sensors and AI-driven analytics. This implementation reduced unexpected failures by 30%, improved fleet readiness , and lowered maintenance costs by 10–15%.

Manufacturing & Industrial : Siemens deployed Digital Twin models of its manufacturing facilities, integrating IoT data from factory equipment to optimize production and predict machine failures before they occurred. This resulted in a 20% boost in production efficiency, 30% less unplanned downtime, and higher product quality.

Healthcare : The Mayo Clinic leveraged AI-driven Digital Twins of patients, built from MRI and CT scans, to simulate surgeries before operating. This gave surgeons the ability to plan and practice complex procedures in advance, resulting in higher surgery success rates, faster patient recovery, and 20–30% fewer complications.

Automotive: GM used Computer-Aided Engineering (CAE) simulations and Digital Twins to conduct thousands of virtual crash tests before building a physical prototype. This approach reduced crash testing time by 50%, lowered costs by millions of dollars, and accelerated the launch of EVs like the Chevy Bolt.

Infrastructure & Construction : NYC built a city-scale Digital Twin to model real-time traffic flows and test road infrastructure changes before making any physical modifications. The outcome was a 15% drop in congestion, optimized traffic light timing, and emergency response times improved by 10–20%.

Given the complexity of digital engineering practices, a long tail of product and service providers has emerged, each targeting niche elements of the lifecycle with varying levels of engineering sophistication.

Growth Drivers

1. Digital Transformation

Manufacturers and infrastructure firms are adopting digital tools to improve efficiency, cut costs, and collaborate more effectively—especially in sectors like automotive, aerospace, and construction. This is fueling demand for digital twins, real-time simulation, and cloud-based engineering software for monitoring, testing, and maintenance.

2. Increased Timeline & Quality of Needs

Firms are under pressure to speed up development, cut prototyping costs, and go-to-market faster. Engineering software enables early-stage validation, rapid iteration, and fewer physical prototypes—critical advantages in competitive and regulated industries.

Modern products like EVs and medical devices are becoming more complex, blending mechanical, electrical, and software elements. To manage this, engineering teams rely on advanced modeling and simulation tools, while rising demand for customization and speed is driving adoption of agile, digital-first development.

There is also a need for simplified and consistent data threads across solutions (e.g., PLM, IoT devices, engineering platforms) to make data-based decisions which has resulted in a need for data transformation services to reach the new standard.

3. Labor Constraints

Bolstering the growth of digital engineering is the proliferation of AI-assisted solutions which has required an increase in implementation and onboarding services to fully equip working teams with effective AI tools. Human capital challenges have resulted in end customers to rely on outsourced engineering talent to advance digital engineering initiatives in the short-term.

Investment Themes for Digital Engineering Market:

Engineering service providers that have built proprietary IPs (e.g., simulation engines, digital twin frameworks, workflow accelerators) are more attractive than pure services businesses. These platforms drive margin expansion, enable recurring revenue, and offer greater defensibility.

Verticalized vendors serving regulated or high-complexity industries (e.g., aerospace & defense, MedTech, energy) benefit from deeper customer stickiness and higher barriers to entry—making them strong candidates for consolidation and premium pricing. Meanwhile, vendors positioned around the digital thread (i.e., connecting PLM, CAD, IoT, and analytics) are becoming foundational to enterprise engineering stacks. These players enable end-to-end data continuity and are well aligned with long-term infrastructure trends. Lastly, vendors with embedded AI/ML capabilities are moving up the value chain by enabling use cases like predictive maintenance and autonomous testing. These capabilities create stickier client relationships and improve margin profiles.

Service-focused providers with full-time labor pools and robust talent development processes are more differentiated and command higher pricing than those that rely on staff augmentation—particularly offshore augmentation—to deliver services.

Grant Thornton Stax has observed several robust tailwinds supporting the rising demand for digital engineering offerings:

Tailwinds:

Technology Advancement: Generative AI, cloud-based simulation, and real-time digital twins are transforming engineering workflows.

Adoption of Digital Thread: Companies are integrating CAD, PLM, IoT, and AI to create seamless end-to-end digital engineering ecosystems.

Government Support: DoD mandates, smart city initiatives, and sustainability goals are driving digital engineering investments.

Growing Industry Adoption: Aerospace, automotive, healthcare, and manufacturing are rapidly implementing digital engineering for efficiency gains.

However, legacy organization practices and tech stacks, skills gaps, and general costs are just a few of the headwinds holding back growth:

Headwinds:

High Implementation Cost: Digital engineering tools require significant upfront investment, making ROI justification difficult.

Skills & Talent Gap: A shortage of AI, digital twin, and model-based engineering expertise is slowing adoption.

Data Sensitivity: Engineering data moving to the cloud increases the risk of IP theft and cyberattacks.

Legacy Organization Stacks: Legacy systems with interoperability struggles, data silos, and resistance to change slows adoption.

What Deal Activity is the Digital Engineering Market Seeing?

M&A activity in the digital engineering market has been robust, with a notable rebound in 2024—reflecting renewed interest from both private equity and strategic buyers amid accelerating digital transformation. The rising deal activity stems from increased PE interest due to the attractive market opportunity and multitude of positive tailwinds.

Recent M&A Activity

Recent private equity transactions in the digital engineering market include a mix of services and software vendors across the size spectrum.

Conclusion

Grant Thornton Stax conducts over 150 software and technology engagements each year for private equity and sponsor-backed businesses. Our deep knowledge of assets along the spectrum from growth equity to mid-market to large-cap allows us to provide diligence and strategy advisory that improves investment outcomes.

To learn more about our expertise, visit www.stax.com or click here to contact us directly.

Grant Thornton Stax Recognized Among Consulting Magazine’s Best Firms to Work For

Wed, 17 Sep 2025 15:03:00 GMT

Last week in Chicago , Consulting Magazine hosted its 25th Annual Best Firms to Work For awards . For the fourth consecutive year, Grant Thornton Stax was recognized—earning the #2 ranking in our category for 2025. The annual list is based on employee satisfaction surveys across five key areas: culture, career development, client engagement, compensation & benefits, and firm leadership.

“Being named a Best Firm is really about our people. At Grant Thornton Stax, we’ve built a culture that puts them at the center—where talented, driven individuals are supported, challenged and given room to grow. More than 30 years in, what continues to set us apart is that we never lose focus on our people: their growth, their voice and their ability to thrive. That commitment has always been, and will always be, the foundation of our success.”

– Jayson Traxler, CEO

The European Wealth Management Software Landscape: A New Era of Opportunity

Mon, 15 Sep 2025 18:20:54 GMT

As wealth management software evolves from fragmented legacy systems to intelligent, AI-native platforms, a powerful set of structural forces is accelerating this transformation across Europe. These forces—spanning client expectations, regulation, product complexity, and profitability pressure—are making digital modernization not just a strategic priority, but a commercial imperative. Together, they are expanding the opportunity for modular, cloud-native platforms and creating fertile ground for private equity investors to back scaled vendors and consolidation plays.

In his new whitepaper, Jai Singh highlight key growth drivers & regulatory tailwinds accelerating the shift to intelligent platforms, as well as providing a future outlook on the drivers that are reshaping the competitive dynamics of European wealth software.

Download the report below to learn more about European Wealth Management Software, including key takeaways such as:

Geographic Diversity
Who Powers What in European WealthTech
Evolution of Wealth Management Software
Critical Threshold of Technology Adoption
Highly Fragmented Vendor Landscape
Scalable Operating Models Through SaaS and Cloud Maturity
Regulatory Impact Tailwinds
Range of High-Conviction Investment Plays

Download the report below to learn more about European Wealth Management Software, including key takeaways such as:

Geographic Diversity
Who Powers What in European WealthTech
Evolution of Wealth Management Software
Critical Threshold of Technology Adoption
Highly Fragmented Vendor Landscape
Scalable Operating Models Through SaaS and Cloud Maturity
Regulatory Impact Tailwinds
Range of High-Conviction Investment Plays

Witold Czartoryski

Partner

Jai Singh

Director

About Grant Thornton Stax

Grant Thornton Stax has a 30-year track record in successfully guiding management and private equity investors through value creation strategies. Our extensive experience within the financial services sector consists of multiple engagements in the banking, wealth & asset management, insurance, and broader financial technology. Visit www.stax.com or click here to contact us directly .

Why Are Private Equity Investors Caring More About DevOps?

Thu, 11 Sep 2025 20:13:23 GMT

Andrew Keller

Managing Director

Tyler Michaels

Director

Yiwei Jiang

Director

Name

Position

Name

Position

Name

Position

What is DevOps?

Broadly, DevOps is a working philosophy that breaks down silos between product development (“Dev”) and IT operations (“Ops”), emphasizing collaboration, automation, and continuous improvement to accelerate delivery and improve quality.

DevOps software refers to the tools that enable developers and IT operations teams to collaborate more effectively across the software development lifecycle. These tools help teams build, test, release, and run software faster, more reliably, and with fewer errors. Currently, the global DevOps market is expected to grow at ~20% CAGR through 2030, driven by the measurable ROI realized by organizations adopting DevOps solutions and best practices.

Impact of DevOps

The market is expected to see double digit growth in the long term fueled by innovation and expanding usage, underpinned by the material ROI impacts on operational efficiencies and gains in time-to-market experienced by adopters.

Cost Savings

Labor & Productivity: Atlassian and Forrester estimate that organizations that adopt DevOps see developer productivity increase up to 20% and results in time savings of ~1.5 hours per day per developer.

Technical Debt: Organizations that adopt DevOps solutions are shown to spend ~30% more time on improving product infrastructure relative to time spent troubleshooting.

Risk Mitigation: DevOps solutions and practices have resulted in faster times to market with a few examples of industry leaders below:

Amazon’s DevOps allows it to deploy new code every 11.7 seconds.
Netflix leverages DevOps automations to release updates daily.
Etsy’s adoption of DevOps reduced deployment times from hours to minutes.

Andrew Keller

Managing Director

Tyler Michaels

Director

Yiwei Jiang

Director

Revenue Generation

Product Quality: An IBM study found that fixing a software bug in production can cost 100 times more than addressing it during development. Organizations that adopt DevOps practices have been shown to improve defect escape rates by up to 40%.

Vendor Landscape

The landscape for DevOps is highly fragmented, being further segmented by mobile & desktop development, infrastructure, and respective ecosystem (e.g., Java). Vendors tend to specialize along two vectors: ecosystem or stage of DevOps lifecycle.

Ecosystem-Tailored Solutions

These vendors are designed around specific programming languages, frameworks, or platforms. They offer tight integrations and workflows optimized for particular tech stacks or cloud environments, often resulting in faster adoption or better developer experience.

While many DevOps tools aim for broad applicability, ecosystem-aligned tools succeed because they deeply understand and optimize for specific developer needs, language behaviors, and deployment environments.

Stage-Aligned Solutions

These vendors offer focused capabilities aligned to specific stages of the DevOps cycle, such as planning, CI/CD, deployment automation, or observability. Buyers often assemble multiple tools to build a best-in-breed tool chain.

Despite the appeal of all-in-one platforms, the DevOps market today is largely dominated by modular tools, although some vendors have had success with broader offerings (e.g., GitLab, Atlassian).

Growing Investor Interest in DevOps

The DevOps market presents an attractive investment opportunity, driven by rapid growth in spend and adoption across company sizes and industries, with several emerging pockets of investor activity:

Tool Consolidation & Platform Expansion

Buyers are consolidating DevOps tools post-pandemic, favoring full-lifecycle platforms that simplify operations and cut costs. PE-led M&A (e.g., Perforce, GitLab) reflects strong demand for end-to-end solutions.

Rise of DevSecOps & Compliance Tooling

Growingly tighter regulations, DevOps tools that embed security, compliance, and dependency scanning early in the pipeline are seeing increased adoption.

SME & Mid-Market Expansion

SMEs and mid-market firms are rapidly adopting DevOps to support digital transformation in sectors like manufacturing and healthcare, driving demand for SaaS-based CI/CD and infrastructure platforms.

Rise of AI‑DevOps / AIOps

AIOps platforms are streamlining operations by automating incident response, accelerating root-cause detection, and enabling self-healing systems.

Potential investors looking to enter the DevOps market frequently express concerns in the disruption of AI, along with the defensibility of a product’s moat, and what growth avenues are available to them. However, answers to these concerns often vary by asset.

Conclusion

Stax perspectives draw from deep experience in the DevOps ecosystem, spanning well over a decade of building insight for investors and management teams. With expertise across various DevOps segments (Plan, Build, Test, Deployment, Operation, and Feedback), our team provides comprehensive assessments and tailored strategies that will expertly guide any engagement. To learn more about our services and expertise visit our Insights page or click here to contact us directly.

Investing in Healthcare 2025: Grant Thornton Stax PE Investor Survey

Tue, 09 Sep 2025 18:24:19 GMT

The healthcare private equity investment landscape in 2025 is expected to be shaped by a mix of optimism and caution. Even with tariff-related uncertainty and a challenging macroeconomic, investor sentiment has strengthened since the start of the year, with many expecting steady or increased deal activity. A combination of attractive assets coming to market, record-long hold periods, and pressure from LPs is driving expectations for greater capital deployment. At the same time, tariffs, shifting reimbursement dynamics, and operational challenges are prompting investors to adopt a more rigorous and data-driven diligence approach.

Within this environment, thematic focus areas such as healthcare facilities, hospital operations software, and non-physician services are drawing significant attention, with AI increasingly viewed as an important influence on investment opportunities. Our Healthcare vertical has compiled the results of a recent survey, conducted by Grant Thornton Stax, highlighting the changing landscape in the Healthcare industry and the opportunities becoming present to PE investors.

Download the report below to learn more about Grant Thornton Stax Healthcare survey, including key takeaways such as:

Deal Flow Optimism
New Assets Entering the Market
Tariff Impacts
Factors Driving Valuations
Our Top 3 Areas of Investment Focus
Physician Practice Management (PPM) Investment Opportunities
Deep-Dive Into Hospital Operations
Impacts of AI

Download the report below to learn more about Stax Healthcare survey, including key takeaways such as:

Deal Flow Optimism
New Assets Entering the Market
Tariff Impacts
Factors Driving Valuations
Our Top 3 Areas of Investment Focus
Physician Practice Management (PPM) Investment Opportunities
Deep-Dive Into Hospital Operations
Impacts of AI

About Grant Thornton Stax

Featured by Reuters: 'It's Europe vs China' as Chinese brands crowd Munich car show

Mon, 08 Sep 2025 14:02:49 GMT

Competition in the EV market intensifies as Chinese and European carmakers are set to clash at the Munich IAA Mobility show.

European automakers are losing ground in China’s price war , with Chinese giants like BYD, Changan, GAC, and Hongqi aggressively pushing into Europe despite tariffs. In response, European players such as Volkswagen, BMW, Mercedes-Benz, and Renault are rolling out mass-market EVs to retain market share. Reuters approached several key industry experts to weigh in on the ongoing clash between the two automotive titans.

Phil Dunne shared his thoughts on the slow response by European manufacturers to the challenge posed by China.

Read the full Reuters article below, or by clicking here .

“Western manufacturers have been a bit too complacent. They'll just have to get used to life with a smaller market share because the Chinese are here to stay.”

- Phil Dunne , Partner, Industrials

“Western manufacturers have been a bit too complacent. They'll just have to get used to life with a smaller market share because the Chinese are here to stay.”

- Phil Dunne , Partner, Industrials

Featured by Management Consulted: Grant Thornton Acquires Stax – What It Means for Private Equity Consulting

Fri, 05 Sep 2025 17:32:02 GMT

This content was originally featured by Management Consulted .

Grant Thornton has announced it will acquire Stax , a leading strategy consulting firm serving private equity clients worldwide. What does this deal mean for the consulting industry and the future of PE-focused advisory?

In this conversation, Jenny Rae sits down with Paul Edwards , Global Practice Lead at Stax, to unpack the acquisition, discussing Stax’s growth journey, cultural DNA, and how the partnership with Grant Thornton will impact clients, consultants, and the broader market.

Paul Edwards

Global Practice Lead

Paul Edw ards

Global Practice Lead

Grant Thornton Stax Advises Bregal Sagemount on its Strategic Growth Investment in Spark Membership

Fri, 05 Sep 2025 16:05:59 GMT

Grant Thornton Stax congratulates Bregal Sagemount on its recent strategic growth investment in Spark Membership , a category-leading platform that provides vertically integrated membership management software and embedded payment solutions purpose-built for martial arts studios. We are proud to have provided our investment advisory services to support Bregal Sagemount.

Spark Membership is a specialized software and payments platform designed for martial arts studios. Its comprehensive offering includes tools for membership management, integrated payment processing, and marketing support delivered through its Ignite division. The platform serves roughly 2,000 clients worldwide and facilitates more than $750 million in annual payments.

Contact the Stax team to learn more:

Palash Misra

Roy Lockhart

Partner

Owen Tindle

Managing Director

About Grant Thornton Stax

Grant Thornton Stax Top 20 Exhibition Organizers Ranked by 2024 Revenue

Wed, 03 Sep 2025 10:12:30 GMT

Florent Jarry

Partner

Exhibition Industry: Growing Revenues, Changing Landscape

Grant Thornton Stax has released its annual Top 20 Ranking of Exhibition Organizers. The Grant Thornton Stax Top 20 ranks the exhibition industry’s leading organizers based solely on their exhibition-organizing revenues in 2024. The global exhibition industry has not only recovered—it’s transformed. The Stax Top 20 reflects a 20% growth for the cohort from its pre-Covid19 high in 2019, but more notably demonstrates a reshaped competitive hierarchy with a shift in market share between institutional and non-institutional organizers. Stax has prepared this report to analyze both of these trends.

ORGANIZERS RANKED BY 2024 REVENUE

Florent Jarry

Partner

Although Informa and RX remain the largest exhibition organizers in 2024, the Grant Thornton Stax Top 20 sees some change with Messe Frankfurt rejoining the podium (at the expense of Clarion), and both Hyve and dmg Events joining the Top 10 after stupendous growth in the year (respectively acquisitive and organic).

CloserStill, NürnbergMesse (both returning to the Top 20), and Easyfairs are also to be commended for their rise up the ranking in 2024.

The Grant Thornton Stax Top 20 also welcomes three new joiners: IEG, IFEMA, and Terrapinn on the back of ambitious growth strategies.

Note: The disappearance of the Chinese institutional organizers from the ranking this year (CFTC, CCPIT, and HKTDC) is due to the absence of credible revenue data.

Year-on-Year Growth: 2023–2024

The topline story is acceleration. Aggregate revenues across the Top 20 organizers rose from $8.77B in 2023 to just over $10B in 2024 , a 14% annual increase. This growth was broad-based—led by both global leaders and mid-tier challengers.

Both Informa and RX, global market leaders, expanded revenues double-digit, the former achieving a record-breaking $2.74B in exhibition-organizing revenues, including the acquisition of Ascential.

The standout gains, however, came from mid-sized and sector-focused groups.

Hyve nearly doubled its revenues, reflecting both portfolio strength and the acquisitions of HLTH and POSSIBLE. dmg Events grew by approximately 70%, driven by strong performance in the energy and infrastructure sectors as well as Middle Eastern growth. Messe Frankfurt, NürnbergMesse, and IFEMA benefited from positive biennial effects to grow above 25%, whilst CloserStill and IEG reaped the rewards of strong portfolio management to expand at a similar pace.

When taking into account all biennial effects (which mostly apply to “institutional” organizers) it is interesting to note that this group grew about 10% in 2024, whilst the “non-institutional” group grew 16%. Of course, results are biased by the biennial event calendars of some players (e.g., Kölnmesse, GL events, or Deutsche Messe). Despite their drop in 2024, these organizers show 20-60% growth on their more comparable 2022 results.

Long-Term Perspective: 2019–2024

Comparisons with the 2019 “high watermark” reveal the full arc of recovery and a significant reshuffling of leadership. Aggregate revenues for the Top 20 in 2024 were 20% above 2019 levels ($10.0bn vs. $8.35bn), confirming the industry has not just recovered, but grown.

Yet within that growth, performance diverges. The firms that have outperformed are those that leaned into international growth, targeted acquisitions, broader event types (including B2B festivals and 1:1 events), and sector-focused models, unconstrained by location.

From an organizer model perspective, it is eye-opening to note that the institutional organizers in today’s Top 20 cohort have flat revenues in aggregate in 2024 compared to 2019, whilst the non-institutional cohort saw aggregate revenues grow more than 30% over the period.

Institutional vs. Non-Institutional Dynamics

For decades, European institutional organizers, often tied to city-owned venues, anchored the global exhibition hierarchy. But their leadership is wavering. While Messe Frankfurt, München, and Düsseldorf remain Top 10 players, their revenue growth since 2019 has been incremental. In fact, not so long ago, there used to be five Messen in the Top 10.

In contrast, groups like Informa, Clarion, Hyve, Easyfairs, and IEG, regardless of ownership model, have achieved faster expansion (35%-50% growth) through acquisitive, international, and asset-light strategies. The most impressive trajectories over the period are those of dmg Events, CloserStill Media, and Terrapinn (new Top 20 entrant this year) who have doubled or even tripled revenues over the period, mostly driven by very strong organic growth engines.

The operators gaining ground are those with the freedom to move capital, launch in growth regions, and scale sector communities—rather than being tied to physical venues and local mandates.

The Bigger Picture

This is not just a rebound story, it’s an ongoing structural shift.

Exhibitions have reasserted themselves as a core channel for B2B marketing throughout the funnel and for customer engagement. The growth strategies of the leading organizers demonstrate that the industry has become more competitive, global, and sector-focused than it was pre-Covid.

The non-institutional players are increasingly defining the growth curve, powered by strategically-focused portfolios, geographic reach, customer closeness, and operational excellence.

Looking ahead, these members of the Top 20 are likely to widen the gap with the rest of the industry as consolidation, geographic expansion, and sector clustering continue. The ability to develop additional channels to support the in-person event model is also one that is being championed by many non-institutional players, further strengthening their value proposition.

Future value creation in exhibitions will be shaped by operators that combine sectoral depth with geographic flexibility and scalable platforms. Fixed-venue operators, by contrast, will be more limited in their ability to capture growth.

Where Do We Go From Here?

Several key questions now define the industry’s forward trajectory:

Which growth strategies (M&A, sector clustering, geographic expansion) are proving most effective?
How defensible are the revenue gains among newly ascendant players?
What operational models offer the best leverage for global scaling?

These are critical questions for any investor or executive evaluating the exhibitions landscape. If you're asking them, Grant Thornton Stax is well-positioned to help answer them . To learn more about Grant Thornton S tax and our expertise visit our Insights page or click here to contact us directly .

Featured by Roofing Contractor: Tariffs, Talent and Tech — The New Rules of Roofing Consolidation

Fri, 29 Aug 2025 13:21:33 GMT

Tyler Veit

Partner

This article was originally published by " Roofing Contractor " and was written by Bryan Gottlieb .

In less than half a decade, roofing has evolved from a fragmented service trade into one of the most aggressively consolidated sectors in construction. Private equity has been the primary catalyst behind this shift, drawn in to the market's dependable demand cycle and margin potential, but the pace has raised questions about sustainability. Meanwhile, macro shocks like tariffs on steel, aluminum, and copper have spiked material costs and extended project timelines, testing the patience of both contractors and investors. Despite this, strategic opportunities remain abundant: tech adoption is accelerating, distributors are consolidating at the highest levels, and disciplined platforms are finding new ways to turn volatility into advantage.

Grant Thornton Stax Managing Director Tyler Veit cautions investors against getting swept up in headline deal volumes, stressing that due diligence requires separating short-term environmental claim waves from true recurring earnings. Tyler also shares how the key to sustainable value isn’t just buying into growth, but ensuring platforms can withstand the ebbs and flows of a cyclical, claims-heavy market.

Tyler Veit

Partner

Grant Thornton Stax Provides Sell-side Support to Innovative Systems on its Acquisition by GTCR

Thu, 28 Aug 2025 15:03:21 GMT

Grant Thornton Stax congratulates Innovative Systems , a leading platform of mission-critical enterprise software serving regional broadband providers nationwide, and a portfolio company of Alpine Investors, on its acquisition by GTCR . We are proud to have provided sell-side support to Innovative Systems, collaborating with their management team and investment bank, Lincoln International, throughout this successful transaction.

Founded in 1998, Innovative Systems is a leading provider of mission-critical enterprise software for regional broadband providers nationwide. The Company offers a fully integrated suite of operating and billing software systems (OSS/BSS), along with payments and bill processing solutions. Its platform enables a seamless, end-to-end operational and billing experience that reduces the cost and complexity of managing multiple point solutions. Innovative Systems serves broadband service providers, utilities, cooperatives, and municipalities across the U.S., delivering comprehensive solutions backed by 24/7, high-quality customer support.

Contact the Grant Thornton Stax team to learn more:

Kelsey Chisholm

Partner

David Lindsay

Director

Alice Dillon

Director

About Grant Thornton Stax

Grant Thornton Stax Advises Peak Rock Capital and PortCo Tapco on its Acquisition of Logix ITS, a Leading Provider of Connected Traffic Solutions

Tue, 26 Aug 2025 17:55:47 GMT

Grant Thornton Stax congratulates Peak Rock Capital and its portfolio company, Traffic and Parking Control Co. (Tapco) , on its recent acquisition of Logix ITS , a Canadian-based provider of connected traffic solutions. We are proud to have supported Peak Rock Capital and Tapco with our investment advisory services in this successful transaction.

Logix ITS is a provider of intelligent transportation systems (ITS) and traffic safety solutions, operating across North America under the Traffic Logix and Parking Logix brands. Since 1995, the company has focused on delivering innovative products that enhance roadway safety, optimize traffic flow, and create long-term value for municipalities, organizations, and communities. More than a technology provider, Logix ITS fosters a culture of growth and innovation, with a mission centered on saving lives, improving well-being, and making a positive impact beyond financial results.

Contact the Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Leader

Yevgeniy Volodin

Director

Yiwei Jiang

Director

About Stax

Grant Thornton Stax Advises Peak Rock Capital on its Acquisition of Aegis, a Leading Manufacturing Software Provider

Thu, 21 Aug 2025 18:20:30 GMT

Stax congratulates Peak Rock Capital on their recent investment in Aegis Industrial Software , a global provider of innovative manufacturing execution system (MES) software solutions for electronic components and discrete manufacturing across the aerospace & defense, medical device, consumer electronics, and diversified industrial end-markets. We are proud to have provided our investment advisory services to support Peak Rock Capital.

Aegis offers FactoryLogix, a next-generation MES platform built on IIoT technology that connects CAD design directly to the shop floor. The solution supports every stage of manufacturing, from generating work instructions and mapping production routes to managing materials, quality control, KPIs, and real-time dashboards. By driving automation, intelligence, and connectivity, FactoryLogix has helped more than 1,000 factories worldwide accelerate digital transformation.

Founded in 1996, Aegis has grown into a global leader in MES software for discrete manufacturers operating in mission-critical industries. Today, its enterprise solutions are deployed across more than 400 customers and 2,200 factory sites in North America, Europe, Asia, and Latin America. The company is headquartered in Horsham, Pennsylvania, with additional offices in Europe and Asia.

Contact the Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Leader

Anantha Natalegawa

Director

Dan Chen

Director

About Stax

Grant Thornton Stax Advises on Successful Transaction of CENTEGIX, a Leader in Workplace Safety Solutions

Wed, 20 Aug 2025 19:03:51 GMT

Grant Thornton Stax’s Education & Public Sector practice congratulates Charlesbank Capital Partners , Gauge Capital , Baird , and Shea & Company on the recent successful transaction of CENTEGIX , a leading innovator in workplace safety solutions within K-12 and other diverse end markets. We’re proud to have supported this deal with our advisory services.

CENTEGIX is a recognized leader in delivering advanced safety solutions across diverse workplaces. Its cloud-based Safety Platform serves as the foundation for comprehensive, layered safety strategies and enables the quickest emergency response, whether for routine incidents or critical situations, anywhere on campus. Trusted by leaders nationwide, CENTEGIX provides innovative tools that help protect and empower people every day.

Contact the Grant Thornton Stax team to learn more:

Robert Lytle

Roy Lockhart

Partner

Miriam El-Baz

Managing Director

About Grant Thornton Stax

A Discussion with Tom Puthiyamadam and Jayson Traxler on Grant Thornton’s Acquisition of Stax

Tue, 19 Aug 2025 21:12:03 GMT

This article was originally featured by Consulting Magazine and was written by Michael Webb.

Following Grant Thornton’s recent announcement that it will acquire Stax, Consulting Magazine took the opportunity to have a conversation with Tom Puthiyamadam , Managing Partner for Advisory Services at Grant Thornton Advisors LLC and Jayson Traxler , CEO of Grant Thornton Stax.

In this exclusive conversation, Tom and Jayson reveal the strategic rationale behind the deal, detail how their combined expertise will elevate offerings across the private equity investment lifecycle, and explain why their shared values will ensure a seamless cultural integration.

They also look ahead to the next chapter of their partnership—expanding the range of services available to private equity clients and portfolio companies and creating fresh opportunities for team members to grow within a people-focused culture both firms have worked hard to foster.

Consulting Magazine: How does the acquisition of Stax fit into Grant Thornton’s strategy for its consulting practice?

Puthiyamadam: We’re building a different kind of advisory practice — one that combines AI-powered insight, deep sector expertise and a broad multinational reach. Grant Thornton Stax is a perfect fit for that vision.

Once closed, this acquisition will significantly enhance our M&A and value creation capabilities, especially for private equity clients. This isn’t just about growing our team — it’s about boosting our capabilities. Stax’s decades of experience, exceptional track record and technology-enabled approach will strengthen how we help clients identify, create and realize value across the deal lifecycle.

Grant Thornton Stax will also align seamlessly with our broader M&A growth strategy, which is focused on expanding high-impact capabilities across key markets. Since January, we’ve announced nearly 10 transactions that extend our platform from the Americas through Europe and the Middle East. Our pending acquisition of Auxis — a nearshoring, AI-powered BPO transformation leader — is another example of how we’re building balanced strength across capabilities, quality and trusted client relationships.

We’re not trying to mimic the Big 4 or stay in a boutique lane. We’re creating a consulting model that scales through talent, technology and a client-first culture — one that’s uniquely positioned to deliver at speed, with precision.

Consulting Magazine: What made Stax the best choice for partnership?

Puthiyamadam: Grant Thornton is looking for advisory partners that can combine speed, scale and precision. Stax will deliver exactly that — and now is the right time to bring their capabilities into our platform.

Stax’s reputation, long-standing client relationships and AI-powered, data-driven approach align perfectly with our vision for technology-forward advisory. By joining forces, we will significantly expand our ability to serve the private equity ecosystem — ranging from funds to portfolio companies — with actionable insights that drive measurable value.

The client synergy is clear. Grant Thornton Advisors already serves more than 600 PE firms and 1,600 PE-backed companies. Together with Stax, we will reach nearly 70% of the U.S.-based Private Equity International 300 — giving us an unmatched footprint in the market.

This acquisition strengthens our U.S. leadership while accelerating our multinational expansion — enabling us to deliver consistent, high-quality impact across borders at the pace private equity demands.

Consulting Magazine: Will joining Grant Thornton change Stax’s ability to serve the private equity market, and what new opportunities might this create for your clients?

Traxler: At Stax, we see the private equity market as more than an investment ecosystem; it is a powerful catalyst for business transformation. Joining Grant Thornton’s leading Transaction Advisory Services platform marks a transformative inflection point for Stax’s growth and impact.

This partnership significantly enhances our ability to deliver value at scale, unlocking access to broader resources, deeper and differentiated capabilities, and expanded geographies. With Grant Thornton’s extensive reach, we are now better equipped to help our forward-looking clients grow, create value, and succeed at the rapid pace of private equity in a world of ever-increasing global complexities. 

Consulting Magazine: Stax is known for its ‘good people doing good work for good people’ mindset. How do you envision the preservation of that distinctive culture within Grant Thornton’s people-first approach?

Traxler: This partnership is a milestone for our people. It opens new avenues of growth, impact, and career development while preserving the collaborative and entrepreneurial spirit that has defined Stax for more than three decades. At the same time, it enhances what we can deliver to our clients, blending Stax’s expertise in private equity, commercial due diligence, value creation, and exit planning with Grant Thornton’s deep financial advisory capabilities to offer a broader, more impactful suite of services.

Our values align closely with Grant Thornton’s people-first culture, which ensures that the unique aspects of Stax will be both protected and strengthened. We also acknowledge the contributions of the many Staxers, past and present, whose contributions brought us here, and we’re energized for the opportunities ahead.

Grant Thornton Advisors to Add Top Diligence and Value-Creation Provider Stax

Tue, 19 Aug 2025 14:08:45 GMT

Together, they will serve almost 70% of the U.S.-based Private Equity International 300

CHICAGO and BOSTON, August 19, 2025--(BUSINESS WIRE)-- Grant Thornton Advisors LLC (Grant Thornton Advisors) today announced it will acquire Stax, a leading strategy consulting firm specializing in commercial due diligence, value creation and exit-planning services for private equity (PE) firms, as well as their portfolio companies and advisers.

Headquartered in Boston with a presence across key financial markets, Stax provides buy- and sell-side diligence and planning for merger and acquisition (M&A) activities, while delivering clients with growth strategies and value-creation initiatives. The firm’s data-driven approach taps into leading AI and advanced intelligence to deliver actionable insights and proven successes for its clients.

The three-decade-old firm has grown rapidly in recent years, while maintaining high client-retention rates and lengthy stakeholder relationships. It serves many of the leading players in large-cap and middle-market PE, alternative investments and investment banking.

The acquisition will elevate U.S.-headquartered Grant Thornton Advisors’ market-leading transaction advisory team by enhancing the breadth and depth of its M&A capabilities. The practice currently has more than 600 PE relationships, including 60% of the top 10 global PE firms by total equity, and more than 1,600 sponsor-backed clients. The deal with Stax further expands Grant Thornton Advisors’ commercial-diligence offerings and adds Stax’s seasoned transaction-consulting leadership team and entrepreneurial energy. Together, the two firms will service almost 70% of the U.S.-based Private Equity International 300.

The transaction grows the multinational, multi-disciplinary platform that Grant Thornton Advisors established in January 2025. To date, it has announced transactions with several accounting and consulting firms to join the platform, including those in Ireland, the UAE, Switzerland/Liechtenstein, the Netherlands, Luxembourg, the Cayman Islands and the Channel Islands. Additionally, Grant Thornton Advisors announced a deal last month to acquire Auxis , a U.S.-based leader and pioneer in outsourcing and business-modernization services.

The platform is backed by an investor group led by New Mountain Capital , a growth-oriented investment firm with approximately $55 billion in assets under management.

“With this bold move, we’re taking our platform to new heights — combining Stax’s top-tier talent with our own industry-leading professionals, while broadening our offerings and further elevating our tech capabilities,” said Jim Peko, CEO of Grant Thornton Advisors. “Stax has a decades-long legacy delivering transformative value to clients — similar to our own 100-year history. Together, we will generate bold results for a PE client base stretching from the Americas across Europe to the Middle East.”

“PE firms today don’t just want an adviser; they want a partner with agility, intelligence and scale,” said Tom Puthiyamadam, managing partner for Advisory Services at Grant Thornton Advisors. “By adding Stax, we’re combining trust with data-driven precision to unlock strategic value at every stage of the investment lifecycle. This is more than an expansion — it’s a leap forward in delivering outcomes for PE and corporate clients.”

According to Jayson Traxler, CEO of Stax: “We are proud to have built a 30-year reputation for excellent client service, unique tech-enabled solutions and impressive growth. As part of Grant Thornton Advisors, those characteristics will endure — but with far greater scale, speed and amplification of our impact. We will be empowered to build on our unique strengths and insights, for the benefit of the leading PE firms, portfolio companies and investment banks.”

Stax’s approximately 300 team members will join Grant Thornton Advisors when the transaction closes, which is expected to take place in 2025, subject to standard closing conditions.

Andre Moura and Nikhil Devulapalli, managing directors at New Mountain Capital, said, “Stax’s world-class commercial diligence and value-creation capabilities are highly complementary to Grant Thornton Advisors’ scaled transaction advisory offering. The addition of Stax enables Grant Thornton to better serve its clients as they contemplate and execute on major investment decisions and operating initiatives. We are proud to continue supporting Grant Thornton as the firm grows and broadens its capabilities.”

In addition to transaction-related services, Grant Thornton Advisors provides a range of services centered on strategy, transformation and operations. These include offerings across technology, finance, operations, sales and marketing, data, AI, cybersecurity and risk. It also provides a complete slate of tax services.

Clearsight Advisors, Inc. and Harris Williams served as financial advisers to Grant Thornton Advisors — and its legal adviser was Simpson Thacher & Bartlett LLP. William Blair and Baird served as financial advisers to Stax. Jones Day served as legal adviser to Stax. Stout served as sell-side financial diligence and tax adviser to Stax.

About Grant Thornton

In January 2025, Grant Thornton Advisors LLC formed a multinational, multidisciplinary platform. The platform offers a premier advisory and tax practice, as well as independent audit practices. With almost 60 offices, the platform delivers a singular client experience that includes enhanced solutions and capabilities, backed by powerful technologies and a roster of almost 13,000 quality-driven professionals enjoying exceptional career-growth opportunities and a distinctive cross-border culture.

Grant Thornton is part of the Grant Thornton International Limited network, which provides access to its member firms in more than 150 global markets.

About Stax

Media Contacts

Grant Thornton US

Jon Rucket

T: +1 404 984 6249

E: jon.rucket@us.gt.com

Stax

Joseph Brownell

T: +1 212 209 0087

E: jbrownell@stax.com

Grant Thornton Stax Advises Ares Management and PortCo Automated Industrial Robotics on its Acquisition of Owens Design

Mon, 18 Aug 2025 16:18:59 GMT

Stax congratulates Ares Management and their portfolio company Automated Industrial Robotics (AIR) on its recent acquisition of Owens Design , a leading industrial automation company with deep experience developing custom solutions for customers in high-tech industries. We are proud to have supported Ares Management and AIR with our investment advisory services in this successful transaction.

Owens Design, founded in 1983 and based in Silicon Valley, specializes in custom automation solutions that help companies accelerate production, reduce risk, and bring products to market faster. Partnering with OEMs and manufacturers from startups to Fortune 500 firms, the company has delivered over 3,000 bespoke tools across industries including semiconductors, medical devices, renewable energy, data storage, and emerging technologies. Supported by a team of 100 experts and a 60,000-square-foot facility, Owens Design is recognized for its engineering excellence, turnkey design-to-manufacturing services, and proven track record in tackling highly complex automation projects.

Contact the Stax team to learn more:

Palash Misra

Roy Lockhart

Partner

Joel Slater

Managing Director

About Stax

Grant Thornton Stax Advises Gridiron Capital on its Acquisition of ABC Legal Services

Mon, 18 Aug 2025 13:34:24 GMT

Grant Thornton Stax congratulates Gridiron Capital on its recent acquisition of ABC Legal Services , a leading national provider of services of process and court filing solutions, from Aquiline Capital Partners . We are proud to have supported Gridiron Capital with our investment advisory services in this successful transaction.

ABC Legal Services is a leading provider of service of process (SOP), trusted by more than 29,000 clients worldwide, including law firms, corporations, government entities, and individuals. Founded in 1974 and headquartered in Seattle, Washington, the company has grown into the largest process serving network in the U.S., with more than 8,000 process servers operating across all 50 states and in 88 countries.

For over 50 years, ABC Legal has supported clients with time-sensitive legal workflows by combining expertise, compliance, and scale. Its services include process serving, skip tracing/locate solutions, court document eFiling, and appearance counsel through its Docketly brand. Backed by a technology-enabled platform, ABC Legal delivers speed, precision, and nationwide coverage, while extending its reach globally to support cross-border legal needs.

Contact the Grant Thornton Stax team to learn more:

Tyler Veit

Roy Lockhart

Partner

Sameer Tejani

Managing Director

Luke Scheibel

Director

About Grant Thornton Stax

K-12 School Safety: Investing Across Physical and Digital Frontiers

Fri, 15 Aug 2025 15:51:15 GMT

Miriam El-Baz

Director

Marissa Licursi

Associate Director

Miriam El-Baz

Managing Director

Marissa Licursi

Director

Name

Position

Name

Position

Name

Position

Introduction: Safety is the New Baseline

School safety, once a reactive line item, has now become a baseline requirement. Across the US, physical and digital safety have become non-negotiable expectations for families, communities, and districts. Amidst rising threats, publicized incidents, and regulatory momentum, school systems are under immense pressure and scrutiny to take visible and effective action.

For investors, this shift is opening a mandate-driven and under-digitized market with growing budget prioritization. Differentiated and extendable solutions—especially those that are critical to broader ecosystems—are best positioned to capture durable demand.

Adoption Drivers: Factors Powering Demand for School Safety Solutions

K-12 safety solutions span two primary categories. Physical safety solutions provide mechanisms to protect students and staff in school environments as everyday incidents (such as medical events and disruptive behavior) and rare but critical threats (such as active shooters or unauthorized visitors) occur. Digital safety solutions focus on safeguarding students in digital, device-based environments as well as equipping educators and administrators with tools for oversight and control. Both categories are increasingly viewed as essential pillars of a secure school environment, and several factors are driving up demand for these solutions.

Physical Safety Solutions

Miriam El-Baz

Managing Director

Marissa Licursi

Director

Demand is growing for emergency alerting, visitor management, surveillance, and access control tools—driven by both bottom-up sentiment and top-down mandates:

Increasing incident volumes and workplace safety concerns: The rise in school safety incidents—ranging from student aggression and medical emergencies to external threats—is creating a climate of fear among educators and contributing to teacher attrition. By implementing robust, responsive physical safety solutions, schools and districts can restore educators’ sense of security and ultimately improve teacher retention.

Legislative mandates : Alyssa’s Law—now enacted in 7 states, with another 20+ states taking steps to pass the law—requires public elementary and secondary schools to install panic alarms and emergency response management systems directly linked to local law enforcement, ensuring a swift and coordinated response during emergencies.

Stakeholder pressure : Parents, boards, and community groups are demanding visible, proactive investments in school safety infrastructure.

Funding prioritization : As COVID-era Elementary and Secondary School Emergency Relief Fund (ESSER) dollars phase out and public K-12 enrollment steadily declines, many school districts face growing budgetary challenges. Even so, the vast majority continue to prioritize school safety solutions—and are shifting toward funding expenditures from core operating budgets rather than grants. This signals a more durable, long-term commitment to safety infrastructure.

Digital Safety Solutions

Safety in the digital environment is now equally critical. With near-ubiquitous one-to-one student-to-device ratios and a rising volume of sensitive Personally Identifiable Information (PII), digital safety is a chief concern:

Device proliferation : Districts must now manage, monitor, and filter activity across thousands of devices in real time.

Cybersecurity threats : With significant volumes of PII, school districts are becoming prime targets for ransomware, phishing, and data breaches, and the vulnerability of and need to protect student data is of growing concern.

Mental health and online behavior : As students’ digital fluency and engagement grow in an era shaped by social media, monitoring student activity within and beyond the classroom, flagging harmful content, and enabling timely intervention are essential—not only to ensure digital safety, but to optimize academic and social outcomes.

Compliance and reputational risk : Growing federal and state-level privacy laws add regulatory complexity, with failures often resulting in high-profile backlash.

Competitive Landscape and the Growing Convergence of Digital and Physical Safety Solutions

The K-12 safety ecosystem is still largely bifurcated between physical and digital domains—each with its own set of solutions, buyers, and procurement pathways. However, there are early signs of convergence as schools increasingly seek unified platforms that integrate monitoring, alerting, and response across physical and digital settings.

For example, in early 2025, Lightspeed Systems—a leader in digital school safety—announced its acquisition of STOPit Solutions, an anonymous reporting and emergency management platform. Additionally, another digital school safety leader—Securly—acquired Eduspire Solutions, a provider of digital hall pass and flex period management solutions, in 2022: today, Securly Pass has a dedicated module for visitor management.

Separately, enterprise cybersecurity vendors (e.g., Fortinet, Sophos, iBoss) have made moves into the K-12 digital safety space, offering web filtering, policy controls, and/or classroom management tailored to school environments. These recent developments are the result of end market demand for K-12-specific features , recognition of consolidated and more flexible budget allocation for IT administrators’ safety and security initiatives, and schools’ digital safety mandates extending beyond network and endpoint protection.

Investment Considerations in K-12 School Safety

For investors evaluating K-12 safety providers, understanding technology and product differentiation, platform expansion potential, and funding source durability is essential:

Technology and product differentiation: Is the product technically and/or functionally distinct in a safety solutions landscape marked by diminishing differentiation? Can the solution demonstrate superior performance across customers’ key purchasing criteria?

Platform expansion potential: For physical players, is there a credible path to expanding into adjacent end markets (e.g., Healthcare, Higher Education, Municipal Government, Retail)? For all safety players, what opportunities exist to expand into a comprehensive safety platform spanning digital and physical realms—or into cybersecurity domains?

Funding resilience: Is growth dependent on short-term, temporary grants or embedded in sustainable district operating budgets? How are districts reallocating general funds to maintain safety investments?

As safety becomes a permanent priority in K-12 education, investors have an opportunity to build scalable platforms, consolidate point solutions across physical and digital domains, and leverage technology to drive differentiation. With an outlook shaped by growing stakeholder expectations, budget commitments, and convergence across safety categories, the K-12 school safety market presents attractive investment opportunities for growth. To learn more about Stax and our expertise, visit  www.stax.com  or  click here to contact us directly.  

From Cost Center to Value Driver—What Investors Should Know about FinOps

Fri, 15 Aug 2025 14:15:50 GMT

Marissa Licursi

Associate Director

Name

Position

Name

Position

Name

Position

Athul Ravunniarath

Palash Misra

Partner

Marissa Licursi

Director

Marissa Licursi

Associate Director

Strategic Rise of FinOps

FinOps—Cloud Financial Operations—is evolving rapidly from a technical niche tool to an increasingly core pillar of enterprise IT strategy. Rising adoption of cloud-based tools has given rise to FinOps, which targets optimizing cloud resource management and associated IaaS, PaaS, and—more recently— SaaS costs.

Enterprises now operate in a decentralized, consumption-based IT model. This shift demands real-time financial visibility and operational control over their cloud infrastructure. Once a back-office discipline, FinOps now commands board-level attention as a driver of efficiency and competitiveness. The momentum is visible: the FinOps Foundation has surged from 12 corporate members in 2020 to over 175 by 2024, with a community of a few thousand in 2020, now exceeding 40,000 trained practitioners with over $300B in cloud spend.

Demand Drivers: Cloud Cost Control is No Longer an Option

The rise of FinOps is underpinned by macro and operational shifts that make cloud financial management critical.

Global cloud spend is massive and rising: Global cloud infrastructure spend has ballooned to over $600B, with cloud services consuming the majority of enterprises’ IT budgets.
CFOs and CIOs are under tremendous pressure: Economic uncertainty is forcing leadership to prioritize efficiency. According to Flexera’s State of the Cloud Report , an estimated ~30% of cloud budgets in 2023 amounted to wasted spend—driving demand for FinOps platforms.
Cloud Usage / Spend is Fragmented : Digital transformation has led to fragmented cloud usage across teams, functional departments, and geographies. The rise of hybrid and multi-cloud environments, Kubernetes, and growing AI-infrastructure investments further increase the complexity. This decentralization is exacerbated by:
Enterprises are increasingly distributing workload across multiple hyperscalers (AWS, Azure, GCP) and on-prem infrastructure to avoid vendor lock-in, meet regulatory requirements, or optimize costs, which adds increased complexity to spend tracking.
Non-IT departments often purchase cloud services or SaaS tools directly, bypassing central IT governance, which leads to duplicated services, underused licenses, and untracked spending (i.e., underused licenses, untracked shadow IT spend).
AI/ML workloads (e.g., LLM training, GPU instances) are driving unpredictable costs—often in non-production or experimental environments.
Integration with IT Asset Management (ITAM) : As enterprises seek unified oversight, FinOps is converging with ITAM to support governance across both cloud-native and legacy IT infrastructure.

Palash Misra

Partner

Marissa Licursi

Director

FinOps Vendor Landscape: Fragmented, Growing, and Ripe for Consolidation

The FinOps market is expanding but remains nascent as a long tail of vendors and native hyperscaler solutions create a fragmented vendor landscape, presenting opportunities for investors.

Point solutions: Most of the FinOps vendor landscape are point solutions focused on rightsizing, forecasting, anomaly detection, vendor management, and budgeting and planning—primarily targeting cloud-native companies.
Hyperscaler tools: AWS Cost Explorer, Azure Cost Management, and GCP Cost Tools offer native solutions. They lack the cross-cloud visibility, cost attribution, and business context that modern enterprises require.

1. Leading Vendors:

Leading vendors such as CloudHealth, CloudZero, and CloudAbility provide sophisticated and detailed tracking of cloud assets.
Some vendors such as CloudAbility and CloudZero also cover emerging areas such as Kubernetes.
Flexera's FinOps solution best suits organizations with hybrid solutions by tracking both public and private cloud utilization.

2. Second Tier Vendors:

Enterprise companies with multi-cloud environments and significant IT/cloud spend often turn to second-tier vendors to consolidate cloud spend management.
ServiceNow, while offering a broad range of solutions outside FinOps, is noted for its limited FinOps capabilities.

3. Native Hyperscaler Solutions:

While functionality in single could environments is strong, these solutions are often limited to that specific cloud.
They may suffice for single-cloud setups, but organizations with multi-cloud environments typically use them as supplemental rather than primary solutions.
Hyperscaler FinOps tools are not designed to maximize cost savings.

4. Adjacent FinOps Vendors:

Vendors covering emerging FinOps areas such as Kubernetes (see and manage spend across native Kubernetes concepts) and AI (manage provisioning and spend on AI, particularly Generative AI, resources).

Adjacencies: Where FinOps Goes Next

Increasingly, FinOps vendors are carving out niches across verticals (e.g., fintech, gaming, healthcare) and, as FinOps evolves to be more strategic, it more frequently intersects with adjacencies such as cloud governance (how spend should be spent by setting limits on resource types, enforcing tagging, or preemptively flagging policy violations) and cloud observability (real-time usage metrics/alerts, SLA compliance).

Stax has observed growing adjacencies / tooling expansions. Some examples include:

Cloud Governance:

Governance tools (e.g., CloudCheckr, Fugue) set limits on resource types, enforce tagging, or preemptively flag policy violations. To accomplish this, cost policies need to be embedded with infrastructure-as-code pipelines—this helps companies prevent overspending before it happens (e.g., blocking high-cost instance types or enforcing tagging standards).

Cloud Observability & Performance Monitoring:

Tools like Datadog, Dynatrace, and New Relic (which track application health and infrastructure usage) are also playing a role in FinOps. Spend decisions increasingly hinge on real-time usage metrics, SLA compliance, and performance optimization. As such, FinOps vendors have reacted by embedding light observability features, like idle resource heatmaps and usage alerts, to compete.

This crowding of capabilities points to future market consolidation or tighter integration partnerships between FinOps vendors and incumbents in observability and ITOM.

More broadly, the FinOps vendor landscape continues to expand because organizations are overwhelmed by cloud cost complexity, hyperscaler-native tools fall short for multi-cloud or granular visibility, and new buyers (CFOs, FinOps teams, DevOps leaders) are demanding more specialized capabilities. This creates room for multiple, specialized players with different strengths across optimization, analytics, automation, etc.

Investor Considerations: Key Diligence Questions and Risks

FinOps is on track to become a permanent fixture in enterprise stacks, but the market remains dynamic. Stax has compiled key diligence considerations for investors evaluating FinOps vendors:

Market-centric Questions:

How penetrated is FinOps within cloud-native orgs (vs. traditional IT or hybrid IT orgs)? How penetrated within regulated sectors vs. non-regulated sectors?
Is FinOps a standalone category or a feature in the view of ITDMs?
How durable is ROI? Is value creation ongoing and tied to continuous optimization, or does it plateau after initial implementation? What does it look like for this particular vendor versus the landscape of FinOps vendors more broadly?
Who is the primary buyer persona (e.g., cloud ops, finance, engineering, FinOps team) and what does the sales motion look like (i.e., direct vs. channel-led)?
What is the risk of hyperscaler encroachment (e.g., native AWS tools) and platform convergence from larger providers (e.g., observability, security, and ITSM vendors expanding into FinOps)? How defensible is the vendor’s position in the face of these risks?

Vendor-centric Questions:

To what extent does this vendor’s roadmap include adjacent categories like governance or observability?
To what extent does the vendor’s offering go beyond dashboards to include real-time anomaly detection, automated rightsizing, or AI/ML-driven forecasting?  
Is the vendor viewed as a point solution or platform and why? What gives this vendor defensibility (e.g., data integrations, ecosystem partnerships, embedded workflows, switching costs) and a right to win in the FinOps ecosystem?
Can the vendor operate across AWS, Azure, GCP, and hybrid IT environments?
What does customer retention and churn look like?

Conclusion

FinOps is no longer just about trimming cloud costs—it’s a core capability for driving cloud ROI. As cloud spend becomes a core operational lever, FinOps has a clear path from feature to platform, and from cost center to value driver. For investors, the imperative is clear: focus on identifying companies that will not just survive but transform cloud spend management into a sustained competitive advantage. To learn more about Stax and our expertise, visit www.stax.com/insights or click here to contact us directly .

Grant Thornton Stax Provides Sell-side Support to AccuLynx, a SaaS Platform for Residential Contractors, on its Acquisition by Verisk

Wed, 06 Aug 2025 20:24:07 GMT

Grant Thornton Stax congratulates AccuLynx , a leading SaaS platform providing end-to-end business management workflow for residential property contractors with expertise in roofing, on its acquisition by Verisk , a leading global data analytics and technology provider to the global insurance industry. We are proud to have provided sell-side support to AccuLynx, collaborating closely with their management team and investment bank, William Blair, throughout this successful transaction.

AccuLynx provides a cloud-based platform designed to streamline the end-to-end operations of roofing contractors. The system supports every critical stage of the workflow—spanning lead generation, sales and CRM, digital measurements, materials procurement, labor management, payment processing, and overall job tracking. Serving primarily contractors focused on insurance-related repairs and restoration, AccuLynx has become a leading business management solution in the roofing industry. Its integrated suite of tools empowers contractors to manage estimating, project execution, invoicing, and reporting in a single platform. Widely recognized as an innovator in roofing CRM software, AccuLynx has enabled thousands of companies to improve efficiency, leverage best-in-class integrations, and achieve sustainable growth.

Contact the Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Leader

Will Barden

Partner

Kelsey Chisholm

Partner

Director

Sam McCabe

Director

About Grant Thornton Stax

Grant Thornton Stax Advises New Mountain Capital on its Strategic Investment in Wipfli, a Leading Advisory and Accounting Firm

Mon, 04 Aug 2025 17:56:33 GMT

Grant Thornton Stax congratulates New Mountain Capital on its strategic investment in Wipfli , a leading middle market provider of accounting, tax and advisory services. We are proud to have supported New Mountain Capital with our investment advisory services in this successful transaction.

Wipfli is a national accounting, tax, and advisory firm serving the middle market. Over the past decade, the firm has grown significantly, tripling in size, completing 30+ acquisitions, and reaching more than $600 million in annual revenue. Wipfli has steadily broadened its capabilities to address the increasingly complex needs of mid‑market organizations, with advisory services now representing nearly half of its overall revenue. This evolution reflects the firm’s long‑standing focus on combining technical expertise with practical insights to help clients navigate growth, transformation, and operational challenges.

Contact the Stax team to learn more:

Tyler Veit

Roy Lockhart

Partner

Jordan Abrams

Director

About Grant Thornton Stax

Grant Thornton Stax Announces Mid-Year 2025 Promotions

Mon, 04 Aug 2025 13:36:02 GMT

Stax is proud to celebrate the Mid-year 2025 promotions of 16 exceptional team members across our global offices. These promotions are a testament to their exceptional contributions and underscore Stax’s continued commitment to investing in and developing our people. As we expand into new markets and introduce new offerings, we recognize that our greatest strength is, and always will be, our people. We remain steadfast in creating an environment that fosters accelerated learning and meaningful opportunities for career growth.

To celebrate this milestone, we invited our newly promoted colleagues to reflect on their journeys at Stax , highlighting how the firm has supported their growth and what differentiates Stax within the consulting industry. Sharing these perspectives on “Why Stax?” reinforces our commitment to our people and helps prospective candidates understand the unique opportunities offered by a boutique consulting environment.

Promoted to Consultant

Maddy Abundo

What would you tell prospective candidates about why they should consider joining Stax?

"One of my favorite aspects about working at Stax is the culture and supportive team/atmosphere cultivated at the firm. Personal development is very important to me, and I am very appreciative of the strong mentorship and team of co-workers (from juniors to seniors) who are willing to share ideas and help when learning new workstreams and challenges. Further, Stax is a great place to learn about new industries and topics through a variety of different engagements (healthcare, tech, and consumer verticals), which has made me very adaptive and knowledgeable across different markets."

Chris Flynn

How has Stax's culture supported your professional growth?

"The mentorship model at Stax—through both mentors and project leads—really helps focus development within the context of the case. The model makes it easier to align your personal goals with the work you're doing, which leads to a better product for the client—plus, it makes the day-to-day more enjoyable because the case feels more collaborative/team oriented."

Samuel Kirby

How has working at a boutique firm like Stax provided you with increased opportunities and access to the senior team?

"Stax's teams are structured to allow new members of the team to make an immediate impact and contribute meaningfully to each project, giving opportunities for more ownership on projects than may be granted elsewhere. The team structures also often lead to direct exposure to directors, who are keen to hear input and perspective from everyone on the team regardless of level. Additionally, the relatively smaller offices compared to some other firms leads to frequent opportunities to meet senior members of the team both socially and professionally."

Jaime Lain T omas

How has Stax's culture supported your professional growth?

"Stax is the ideal place to learn, where no question is too small and no mistake is final. From day one, I’ve been encouraged to step outside my comfort zone and take on meaningful responsibility, accelerating my learning and supporting my career growth."

Jessica Livney

How has working at a boutique firm like Stax provided you with increased opportunities and access to the senior team?

"Being at a boutique firm like Stax has meant being able to work directly with senior team members from day one. I have learned a lot by watching how they approach project work and lead client discussions, while also having the opportunity to ask questions and receive thoughtful feedback. That level of exposure and support has really accelerated my development and has helped me take on greater ownership early on in my career at Stax."

Promoted to Senior Consultant

Lachlan Dibbayawan

Can you share your experience working across different industries and project types at Stax?

"It's an exciting opportunity to constantly get to learn about different industries from project to project. I get to challenge myself to learn the nuances of these industries and apply my skillsets in different ways to answer the clients' questions."

Nick Farrar

How does Stax’s approach to internal organization contribute to the company culture?

"Stax’s organizational structure creates frequent opportunities to work directly with senior leadership, which fosters a collegial, collaborative atmosphere. This accessibility and trust carry through both on and off projects, making the culture feel supportive and tightly knit."

Rep Woroch

Can you share your experience working across different industries and project types at Stax?

"Exposure to many different industries enables quicker learning on key consulting skills. You might learn a particular business or industry strategy and can transfer it to a completely unrelated industry."

Promoted to Associate Director

Marissa Licursi

What specific ways has Stax supported your career development and opened opportunities that helped you achieve your current role?

"I’ve been lucky to be surrounded by leaders and mentors—formal and informal—at Stax who genuinely invest in their people. I’ve received feedback that’s been direct, actionable, and timely, which I value immensely. But beyond that, Stax has opened doors giving me stretch opportunities early on in my tenure and trusting me to lead. We have a culture here that encourages people to just raise their hand—and some of my most formative experiences have come from me asking to take on certain things (rather than them being assigned to me). That has been instrumental in helping me get to where I am today."

Promoted to Director

Miriam El-Baz

From your perspective, what differentiates Stax as a place to build a long-term career, particularly for experienced professionals?

"What sets Stax apart is the combination of high-impact client work, a deeply collaborative culture, and a genuine commitment to professional growth. As I step into the Director role, I’m grateful for the trust, mentorship, and opportunities that have shaped my journey so far. From day one, Stax empowers senior leaders to grow, lead our clients and our people with purpose, and shape the firm’s strategic direction."

Operations (US)

Michael Miserendino

Promoted to Senior Content Marketing Strategist

Describe the aspects of your role that you find the most rewarding.

"Given how Stax has experience across multiple verticals and sub-verticals, there is no shortage of new topics to explore. I find that I rarely write about the same subject twice and it keeps me on my toes as a writer. I also get to work directly with numerous stakeholders across the firm's hierarchy, and it's fun to pick their brains and leverage their knowledge and experience to create quality content that directly impacts the firm."

Promoted to Lead (Colombo)

Praneitha Anpalagan

How has the culture at Stax influenced your experience and career development opportunities?

"People at Stax who make the working environment apt for learning through knowledge sharing play a huge role in my career development. Being open to ask questions, and space to try new things has enabled to learn and develop skills."

Razim Jamaldeen

How has working at Stax impacted your professional development and interaction with senior leadership?

"Working at Stax has been an incredible experience that has shaped my professional growth in so many ways. I’ve gained exposure to a wide range of industries, which has expanded my knowledge and strengthened my ability to deliver meaningful impact. A highlight of my journey has been the opportunity to work closely with senior leadership, learning from their strategic approach and insights. These experiences have helped me grow, refine my skills, and take on greater responsibilities with confidence."

Ruvini Seresinhe

How has working with the global consulting team deepened your understanding of how your analyses impact the business?

"Working with the global consulting team has shown me how impactful our work truly is by shaping client strategies, guiding investments, and influencing major business transformations. It’s been rewarding to see our insights drive tangible outcomes at the highest levels of decision-making."

Kishore Shanmugam

How has Stax helped your career development and progression?

"Stax has been more than just a workplace, it’s been a space that challenged me with real-world problems, empowered me with ownership, surrounded me with supportive mentors and teammates, and continuously encouraged a growth-first mindset that shaped both my confidence and capabilities."

Promoted to Delivery Manager (Colombo)

Arthiff Jaleel

How has Stax's growth over the past few years enabled you to contribute to various aspects of the company beyond your project work?

"The company’s growth over the past few years enabled me to play a more active role beyond project delivery—training team members on key non-functional skills and driving initiatives to streamline our team’s processes to better align with Stax’s evolving direction and scale."

Why Stax?

Good people, interesting work, immediate client-facing opportunities, and room to grow based on the merits of your work. Whether you have experience working at large consulting firms or more of a boutique consulting background, learn what unique opportunities Stax offers: fast-paced learning and accelerated career development, direct access to leadership, top-notch offshore research and analytics support, and work-life balance that is more sustainable.

Grant Thornton Stax Gives Back: A Cross-Office Clothing Drive Supporting Goodwill and Traid

Mon, 21 Jul 2025 14:32:46 GMT

At Grant Thornton Stax, we believe collaboration and a little healthy competition can drive incredible outcomes, especially when it's for a worthy cause. This June, our offices in Boston, New York, Chicago, and London engaged in a spirited, cross-office challenge to collect the most clothing donations in support of local Goodwill organizations in the US and Traid in the UK. (Spoiler alert: Chicago took home the win and the pizza party!)

Led by the Grant Thornton Stax Community ERG, the initiative began with a clear and timely message: as the seasons change, take the opportunity to clean out your closet and donate gently used items to those in need. What started as a simple seasonal refresh quickly grew into a company-wide competition.

Why Goodwill and Traid?

Grant Thornton Stax partnered with Goodwill in the US and Traid in the UK—two mission-driven organizations making meaningful impact through clothing donations. Goodwill empowers individuals and families by helping them reach their full potential through education, job training, and the power of work. Every gently used item donated helps fund vital programs that support those facing barriers to employment. Each shirt, pair of shoes, or blazer not only stocks shelves but fuels job creation and workforce development in the local community.

Traid, a UK-based charity retailer, is on a mission to make fashion more sustainable and ethical. By collecting and reselling quality second-hand clothing through its London shops, Traid extends the life of garments while reducing waste. Proceeds support global projects that uplift the people behind the clothing, from organic cotton farmers to garment workers, creating positive change throughout the supply chain.

Together, these organizations reflect the values of reuse, dignity, and opportunity, making them perfect partners for our cross-office donation drive.

The Final Count

Across all Grant Thornton Stax offices, hundreds of clothing items were collected and donated. This initiative highlights how small, everyday actions, like cleaning out a closet, can spark meaningful change. It also reflects the strength of the Stax community when we unite around a shared purpose.

Grant Thornton Stax Provides Sell-side Support to Nuqleous, a Provider of Space Planning and Retail Analytics Software Solutions, on its Investment by Rubicon Technology Partners

Wed, 16 Jul 2025 20:43:21 GMT

Stax congratulates Nuqleous , a leading provider of space planning and retail analytics software, on its recent strategic growth investment from Rubicon Technology Partners . We were proud to support Nuqleous on the sell-side, collaborating closely with their management team and investment bank, Raymond James .

Nuqleous delivers essential analytics and space planning software solutions to more than 180 consumer packaged goods (CPG) brands worldwide. Leveraging its deep understanding of retail data infrastructure, the company’s platform—including tools like Shelf IQ, Retail Analytics, and Presentation Builder—empowers teams across sales, category management, supply chain, and IT to uncover insights more efficiently, enhance retail performance, and drive accelerated growth.

Contact the Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Leader

Anantha Natalegawa

Associate Director

About Stax

Grant Thornton Stax Advises Nautic Partners on Recent Acquisition of AccessIT Group, a Specialized Cybersecurity Solutions Provider

Wed, 16 Jul 2025 19:08:03 GMT

Stax congratulates Nautic Partners on its recent acquisition of AccessIT Group , a trusted provider of specialized cybersecurity services and solutions. We are proud to have supported Nautic Partners with our investment advisory services in this successful transaction.

AccessIT Group is a leading cybersecurity firm that delivers specialized services to help organizations build, strengthen, and manage their security operations and infrastructure. With over two decades of experience, the company offers deep expertise in areas such as cloud security, risk management, compliance, and system implementation. AccessIT Group combines advanced technology with a client-focused approach to help businesses confidently address today’s complex cybersecurity challenges.

Contact the Stax team to learn more:

Tyler Michaels

Director

About Stax

Grant Thornton Stax Advises WilliamsMarston on its Recent Acquisition of AIT Consulting Services

Wed, 16 Jul 2025 18:52:06 GMT

Grant Thornton Stax extends its congratulations to WilliamsMarston , a national leader in accounting, tax, valuation, and transaction advisory services, on its recent acquisition of AIT Consulting Services , a premier OneStream Software advisory and consulting firm. We are proud to have provided investment advisory support to WilliamsMarston in this successful transaction.

Established in 2018, AIT Consulting (AIT) is a top-tier advisory firm and Diamond OneStream Partner, focused on maximizing the impact of OneStream’s corporate performance management platform. The firm brings a unique blend of technical systems expertise and deep financial and accounting knowledge to deliver transformative solutions. AIT has a strong track record of enhancing financial consolidation, budgeting, forecasting, and close processes for a diverse client base, including large enterprises and private equity-backed businesses. The firm has also developed proprietary tools within the OneStream ecosystem that drive efficiency and deliver tangible business outcomes.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Leader

Tyler Michaels

Director

About Grant Thornton Stax

Advancing Commercial Due Diligence: Beyond Core Deliverables to Dynamic ESG Integration

Wed, 16 Jul 2025 15:20:39 GMT

Anuj A. Shah

Partner, ESG & Impact Advisory

Private equity investors have long relied on CDD to de-risk investments, validate core deal theses, and make more informed transaction decisions–an approach grounded in proven methodologies and well-scoped mandates. However, this intentional scope limitation may inadvertently leave analytical gaps, which are especially highlighted in today’s complex strategic environment characterized by persistent uncertainty , shifting macroeconomic conditions, evolving market behaviors, vulnerable supply chains, and demands for organizational agility.

When such strategic factors are outside the defined scope, investors find themselves (knowingly or unknowingly) either evaluating incomplete insights or needing additional diligence to address these gaps. A more strategic approach means anticipating what could be missed, not just delivering on what’s asked. Identifying and proactively addressing these potential blind spots has become imperative for sponsors seeking to invest with greater conviction, speed, and agility.

A more dynamic, advisory-driven approach to CDD–one that, for example, incorporates broader strategic issues such as environmental, social, and governance (ESG) factors–addresses these scope limitations. Integrating ESG diligence directly into core CDD workstreams helps eliminate redundancies and provides investors with deeper, more precise, and strategically integrated insights inherently aligned to business objectives. Conversely, treating ESG diligence separately results in duplicated workflows and fragmented analyses, placing unnecessary burdens on investors.

This article proposes an evolution in how investors and diligence providers conceptualize and execute CDD, using ESG integration as a primary example. It advocates for a strategic, agile, and commercially aligned approach to ESG analysis, distinct from the compliance-centric methods prevalent in regulatory-driven environments. Highlighting the pragmatic advantages of this model, we’ll provide concrete examples of how ESG diligence can be effectively embedded into diligence workflows and connect to value creation.

Anuj A. Shah

Partner, ESG & Impact Advisory

Core commercial due diligence typically includes two major workstreams: primary and secondary research .

Primary research involves direct engagement with stakeholders through structured interviews, providing qualitative insights into customer preferences, competitor strengths, and overall market dynamics.

Secondary research leverages market reports, competitive benchmarks, and financial analyses to quantify market size, growth potential, and operational resilience.

Collectively, these research streams help investors build a comprehensive understanding of a target company's market opportunity, competitive positioning, operational effectiveness, and financial health.

However, approaching these workstreams with fixed or narrowly defined scopes may limit their effectiveness. Important strategic inputs, such as emerging policy shifts or unexpected regulatory changes , could be overlooked if they fall outside predetermined diligence parameters. Without flexibility to dynamically incorporate such developments, investors may miss timely insights.

Simultaneously, investors increasingly seek expanded diligence approaches. In today's environment, marked by delayed exits, tighter fundraising conditions, and macroeconomic uncertainties, greater emphasis is being placed on identifying actionable value creation levers during the diligence phase. Investors now expect diligence processes to explicitly evaluate potential value creation opportunities such as pricing strategies, cross-selling potential, operational improvements, and market expansion. By embedding value creation analysis into diligence , investors can better assess not only current business viability but also future EBITDA growth potential.

Strategic ESG considerations naturally intersect with both core and expanded CDD workstreams. For instance, regulatory developments can significantly alter market sizing assumptions, customer diligence often reveals shifts toward sustainability, competitor analysis must account for rivals’ ESG strategies, and operational assessments increasingly need to factor in ESG-related risks like supply chain disruptions due to climate events or resource constraints.

Currently, ESG diligence often occurs as a standalone, compliance-driven process, emphasizing data collection for reporting over business relevance. Frameworks like SASB , GRI , and industry-led initiatives such as EDCI , reinforce compliance-focused approaches, resulting in detailed yet strategically superficial outputs. This can perpetuate the perception of ESG as merely a “check-the-box” exercise, overlooking critical connections between ESG factors and core business drivers.

Regulatory-driven ESG disclosure requirements such as CSRD in the EU, can compound compliance burdens, focusing heavily on documentation and data collection rather than targeted strategic analysis. Advocates for stringent ESG regulations overlook that extensive disclosure mandates entrench inefficiencies and divert resources away from critical strategic insights. Conversely, environments less constrained by mandatory disclosures afford diligence providers with greater flexibility, allowing ESG analyses to concentrate on factors most relevant to business value and transaction objectives, providing clear strategic advantages.

Rather than perceiving fewer disclosures as a shortcoming, a less regulated environment should be seen as more strategically beneficial. It empowers investors to align ESG analyses directly with specific investment theses and business goals, moving away from compliance checklists and towards targeted, fit-for-purpose evaluations of ESG factors demonstrably tied to value creation, competitive advantage, and operational enhancements. For example, investors conducting business-oriented ESG diligence can quickly identify and capitalize on new market opportunities, such as shifts toward sustainable products or changing consumer preferences, enabling more agile and informed decision-making.

In conclusion, integrating ESG analysis into a dynamic, advisory-driven CDD process represents a critical evolution. Integrating ESG factors within flexible diligence frameworks helps ensure analysis remains relevant, actionable, and directly aligned with investor objectives, thereby enhancing strategic clarity and reducing inefficiencies. PE firms that embrace this dynamic advisory approach differentiate themselves, transforming ESG from a compliance obligation into a potent driver of value creation and competitive advantage.

Contact us to learn more about how Grant Thornton Stax integrates strategic risks and sustainability considerations into our comprehensive diligence approach.

Grant Thornton Stax Wins 2025 Sammy—Sales and Marketing Award in the Power Players Category

Tue, 15 Jul 2025 13:13:51 GMT

NEW YORK, July 15, 2025 — Grant Thornton Stax, a global strategy consulting firm specializing in commercial due diligence, value creation, and exit planning for private equity firms, PE-backed companies, hedge funds, and investment banks, announced today that it has been honored with a 2025 Sammy–Sales and Marketing Award , presented by the Business Intelligence Group. The company was recognized in the Power Players (Top Team) category for its outstanding performance in advancing modern sales and marketing through strategy, innovation, or creativity.

The Sammy–Sales and Marketing Awards celebrate the organizations, products, campaigns, and individuals leading the way in go-to-market excellence. Winners were selected by a panel of expert judges based on performance, alignment with business outcomes, and measurable success.

“Sales and marketing are now operating as one, which means success demands not just great ideas or great tools, but a team that brings both together,” said Russ Fordyce , CEO of the Business Intelligence Group. “The 2025 Sammy–Sales and Marketing Awards honor those making that vision real. We’re excited to recognize Stax for its leadership and results.”

The Grant Thornton Stax Marketing team was recognized for its scalable, multi-channel content initiative strategically aligned with firmwide goals and the company’s verticalization strategy. Launched in 2024, the program engaged more than 50 internal thought leaders and produced over 180 assets distributed across paid and organic channels. Integrated calls to action enabled CRM attribution of marketing-qualified leads, generating over $10M in sales pipeline and showcasing clear, measurable impact.

“We’re proud to be named a 2025 Sammy Award winner by the Business Intelligence Group,” said Jayson Traxler , CEO of Grant Thornton Stax. “This award is a testament to the strength and depth of the operational platform shaped under Joe Brownell’s leadership and the efforts of our cross-functional marketing team, purposefully built to serve the fast-paced, insight-driven needs of our private equity clients. By bringing together Grant Thornton Stax’s deep sector expertise and data-backed perspectives, we’ve created a thought leadership engine that delivers tangible value throughout the private equity investment lifecycle.”

To learn more about the Sammy – Sales and Marketing Awards, visit: Recognizing the Full Power of Sales and Marketing: Strategy, Technology and Creativity | News | Business Intelligence Group

About Grant Thornton Stax

Grant Thornton Stax is a global management consulting firm serving corporate and private equity clients across a broad range of industries including software/technology, healthcare, business services, industrial, consumer/retail, and education. The firm partners with clients to provide data-driven, actionable insights designed to drive growth, enhance profits, increase value, and make better investment decisions. Please visit www.stax.com and follow Grant Thornton Stax on LinkedIn , Instagram , Threads , and Facebook .

About Business Intelligence Group

The Business Intelligence Group was founded with the mission of recognizing true talent and superior performance in the business world. Unlike other industry award programs , these programs are judged by business executives with real-world experience. The organization's proprietary scoring system measures performance across multiple business domains and rewards companies whose achievements are significant and measurable.

Media Contacts

Joe Brownell
Global Head of Marketing
Stax
jbrownell@stax.com

Eliana Starbird
Chief Nominations Officer
Business Intelligence Group
+1 909-529-2737
contact@bintelligence.com

A Recap: Investing in Behavioral Health—Scalable Solutions for a Growing Need

Mon, 14 Jul 2025 19:46:55 GMT

Grant Thornton Stax recently hosted a group of healthcare-focused private equity professionals in New York for an exclusive discussion on investment opportunities in behavioral health. The event focused on how investors can evaluate scalable, tech-enabled solutions in this evolving space, particularly in light of shifting care models and reimbursement dynamics.

A highlight of the discussion was the growing investor interest in Applied Behavior Analysis (ABA) , a high-growth subsegment within behavioral health. Participants also explored broader trends reshaping the industry and the characteristics of tech-enabled platforms that are attracting capital. The conversation was further enriched by the participation of Farragut Square Group, a leading reimbursement advisory firm.

Topics covered included:

Why behavioral health is positioned for scalable investment
Which care models are driving growth
What makes ABA a particularly compelling opportunity
Key considerations for evaluating tech-enabled behavioral health platforms
Common pitfalls investors should avoid, based on lessons learned from past transactions

Grant Thornton Stax’s breakfast briefing offered practical insights on assessing investment targets in this dynamic sector. With deep expertise across the healthcare IT and services ecosystem, Stax continues to support clients in identifying and executing on high-potential opportunities.

For further discussion, reach out to our dedicated healthcare experts and partners .

Brad Kuntz

Partner

Rob Larson

Managing Director, Healthcare

Annie Sullivan

Director

Building the AI-Literate Generation: Strategic Investment Opportunities Across K-12's AI Ecosystem

Wed, 09 Jul 2025 14:52:05 GMT

Miriam El-Baz

Managing Director

The number of AI tools designed for students and educators across K-12 , higher education, and lifelong learning has surged in recent years. To ensure these tools are utilized to their fullest potential—and in ways that are safe, responsible, and ethical—there is strong bipartisan consensus on making AI literacy a central pillar of elementary and secondary education . AI literacy aims to equip students with the skills and understanding needed to thrive in academic settings and the modern workforce as both are rapidly reshaped by artificial intelligence.

In April, President Trump signed the Executive Order Advancing Artificial Intelligence Education for American Youth , which calls for the integration of AI into K-12 curricula and teacher training. The order also directs the launch of a national AI challenge to spark innovation in educational AI applications, the expansion of public-private partnerships for K-12 AI education, and increased participation in AI-related apprenticeships, all with the goal of preparing students and educators to navigate and succeed in an increasingly AI-driven world.

Widespread advancement of AI and AI literacy across K-12 carries complex and far-reaching implications. At its core, ensuring all students gain baseline AI knowledge and skills—irrespective of geographic location and career aspirations—promotes universal fluency in AI and its applications, much like the K-12 system has long supported basic competencies in mathematics and language.

Miriam El-Baz

Managing Director

Conversely, some contend that formally embedding AI into curricula may hasten the erosion of traditional teaching and learning practices, potentially undermining students’ cognitive development as essential skills like reading, writing, and problem-solving become progressively supported or replaced by AI tools. Accordingly, AI literacy initiatives must strike a challenging balance between equipping students to harness AI for enhanced learning and productivity and establishing guardrails that minimize overreliance on AI technologies and the cognitive consequences they can bring.

As AI usage accelerates and the underlying infrastructure for AI literacy matures, several compelling opportunities exist for investors to participate in this rapidly evolving ecosystem:

Investing directly in AI-enabled solutions: The landscape of organizations advancing AI-powered tools for students and educators spans innovative AI teaching and learning startups (e.g., MagicSchool AI, Brisk Teaching, Curipod), established education companies embedding AI into their products (e.g., Imagine Learning, Carnegie Learning, GoGuardian), and major horizontal AI players (e.g., OpenAI’s ChatGPT, Anthropic’s Claude). The first two categories are expected to present a range of actionable investment opportunities over the next 6-18 months as demand for AI-driven instructional tools, personalized learning platforms, and classroom productivity solutions expands.

Investing in providers of AI-focused curricula and courseware for students: As schools look to integrate AI literacy into K-12 classrooms, there is growing demand for high-quality, standards-aligned content that teaches students core AI concepts, ethics, and applications in accessible ways. Opportunities exist to back companies developing interactive AI curriculum modules, project-based learning experiences, and courseware that can be deployed both in traditional classroom settings and virtual learning environments. Investors can also consider supporting platforms that offer scalable AI certification pathways for secondary students preparing for college or technical careers.

Investing in providers of AI-focused teacher preparation programs, continuing education, and training: Equipping educators with the skills and confidence to integrate AI into teaching is critical to advancing AI literacy and sustaining long-term adoption. Investors may explore partnerships with organizations designing teacher certification programs, professional development courses, and other workshops that train educators to use AI to streamline key workflows and lead instruction on AI literacy, tools, and ethics. Additional opportunities include investing in companies offering training solutions for school- and district-level leaders seeking to upskill in AI and effectively lead through AI-driven change.

Conclusion

The accelerating integration of AI into education marks a profound shift with both promise and complexity. On one hand, AI offers transformative potential to enhance learning outcomes, personalize instruction, and better prepare students for an evolving economy defined by technological innovation. On the other, it demands careful stewardship to ensure equitable access, preserve essential cognitive skills, and uphold ethical standards. As policymakers, educators, and investors work together to build the infrastructure for widespread AI literacy, the choices made now will shape whether the next generation emerges as passive users of AI or as empowered, thoughtful innovators. By investing strategically in the tools, content, and training that underpin AI education, investors have a unique opportunity to help realize a future where all learners and educators can thrive in an AI-driven world.

To learn more about Stax and our Education expertise, visit www.stax.com or click here to contact us directly .

Grant Thornton Stax Provides Sell-side Support to Bow River Capital on its Sale of Progressive Roofing to TopBuild

Tue, 08 Jul 2025 19:54:58 GMT

Stax congratulates Bow River Capital on the successful sale of Progressive Roofing , a leading US provider of commercial roofing installation services, to TopBuild , a premier installer and specialty distributor of insulation and building materials across North America. Stax was proud to support Progressive Roofing’s management team with sell-side diligence, working alongside Citizens Bank and Guggenheim Securities.

Founded in 1978, Progressive Roofing is a leading US provider of commercial roofing services, offering re-roofing, maintenance, and new construction solutions. The company serves a diverse mix of end markets, including education, technology, industrial, healthcare, and government.

For more details on our experience in the space, please contact the Stax team:

Palash Misra

Partner

Joel Slater

Managing Director

Jordan Abrams

Jordan Abrams

Jordan Abrams

Director

About Stax

Grant Thornton Stax Advises Hg on its Strategic Growth Investment in A-LIGN

Tue, 08 Jul 2025 18:07:53 GMT

Grant Thornton Stax congratulates Hg on its recent strategic growth investment in A-LIGN , a leading technology-enabled security and compliance partner. We are proud to have supported Hg with investment advisory on this transaction.

A-LIGN is a leading provider of cybersecurity compliance solutions, delivering high-quality, efficient programs through a combination of experienced auditors and proprietary audit management technology. The firm offers a broad range of services, including SOC 2, ISO 27001, HITRUST, FedRAMP, CMMC, and penetration testing, and is a top issuer of SOC 2 reports as well as a leading HITRUST and FedRAMP assessor.

Contact the Grant Thornton Stax team to learn more:

Owen Tindle

Roy Lockhart

Managing Director

Sam McCabe

Director

About Grant Thornton Stax

A Plan in Need of a Plan—Early Reflections on the New 10-Year Plan for the NHS

Fri, 04 Jul 2025 16:17:20 GMT

Adam Thorpe

Managing Director

After some early leaks and much expectation, the Government finally published its 10-year health plan for England on 3 July 2025. It has a clear vision for the future of the NHS but it feels like objective and ambition (aspirations of “what” the NHS should be) without any real detail on the “how” and (importantly) the “how much.”

As noted in our Investing in UK Health report from February 2025, the state of the country’s healthcare system remains highly fragile.

The 10-year plan talks plainly and with common sense; noting how essential it is to rebuild a system which is “fit for the future” and highlighting themes such as:

The need to improve access to health across the country and focus more on prevention rather than cure
Plans to transition more care from hospital to the community and into the home
Embedding technology and innovation and moving from analogue to digital provision, with the NHS App as the digital front door and a single electronic patient record throughout the NHS system
Better financial discipline, more productivity, a better-quality workforce, and more control in the system

The King’s Fund and Nuffield Trust have both welcomed the overall direction of travel but are both very sceptical of the reality of execution and the lack of any actionable (and funded) execution plans. Given the lack of clarity at this stage, Stax considers the implications for independent sector providers and healthcare investors and asks its industry advisor panel for their early reflections. Our thoughts can be summarised around six key themes:

Adam Thorpe

Managing Director

1. The plan needs a plan (and a budget)

It is difficult to argue against the key themes raised in the 10-year plan. However, a strategy is not a strategy unless it has a clear execution plan with defined roles and responsibilities and this is no different. If the NHS represents 38% of government spend today and 40% by the end of parliament (with the 30 June 2025 Spending Review suggesting a real terms increase in funding of only 3% per year), then is that really consistent with the scale of change required? And where can private capital help take the strain?

“The big ideas are right—but without a delivery roadmap and committed funding, we’re not looking at a plan, we’re looking at a wish list. It is difficult to back vision statements—we need executable models with real accountability.”

— Gordon Henderson, Stax Healthcare Advisor

2. The ambition for better access to care and more focus on prevention rather than cure is laudable but our starting point is scarily low

The scale of the turnaround cannot be overstated. The UK’s health system is on its knees. Although improving slightly recently, the NHS England waiting list remains well above 7 million. Our February 2025 report offered a stark reminder of the ongoing severity of the situation.

But all journeys start somewhere, and we welcome the ambition in areas such as ramping up screening, working on wellbeing (including obesity, alcohol, tobacco, etc.), embracing wearables and genome testing initiatives.

3. Changing patterns of care delivery and the increasing role of digital health should provide real opportunities in the coming years

Among the landmark announcements was the roll out of Neighbourhood Health Centres (NHCs). This is a concrete step towards the ambition to move more care from hospital to community and to optimise hospital flows by reducing the need for follow up appointments (given that follow-ups account for over 50% of hospital appointments according to the HFMA). These local hubs could combine care and diagnostics and include a mix of doctors, nurses, specialists, and pharmacists.

The government has promised to set up 300 of these NHCs by 2035 and these feel like an interesting area for further public/private cooperation. A word of caution comes from The King’s Fund who highlighted in their 3 July 2025 response, “History has shown us that you can’t simply co-locate different health professionals in a building and expect a neighbourhood health service to flourish.” Again, this feels like a nice ambition but lacks detail to date.

Trends to more care being delivered in the community (including pharmacies) and in the home should provide opportunities in care provision, technology, and services such as staffing and logistics.

When transforming care models, it is a shame that plans do not really consider where health meets social care. There is an independent commission on adult social care reform but this is not due to report back until 2026 and, as Helen Morgan MP said, “Everyone knows you can’t fix the NHS without fixing social care.”

The shift from analogue to digital was a key theme from the Darzi report and it took centre stage in the new plan. This is a game-changer and an area which should provide opportunities in the coming years. Central to the plan is the role of the NHS App (described as “the doctor in your pocket” by some). The plan also considers focus areas such as increasing the use of AI, better health and genomic data, and leveraging wearables.

“The focus on AI is laudable and needed but the reality of the NHS IT estate is it is inefficient and disparate. The current barriers to national NHS adoption of new digital technologies are significant and the concept of a “digital passport” is very welcome. The government should ensure they favour UK innovation from relatively small players and not just favour US multinationals because they have the largest lobbying budgets.”

— Keith Gibbs, Stax Healthcare Advisor

4. Plans for the NHS workforce feel well intentioned but don’t give much comfort over the government’s ability to drive such fundamental change through a tired, under-staffed, and low morale team

UNISON broadly welcomed the plan but highlighted the strain placed on the workforce. In their 3 July 2025 response, they said, “Significant funding…is crucial” and “staff morale is low. NHS organisations are being restructured or abolished. Service cuts and job losses are now the reality for health workers. Trusts are having to axe resources and lose the very people that could make the plans happen.”

This doesn’t feel like a balance that can work. In addition, the big shifts and moves to community care are planned to be delivered with fewer people than budgeted in the 2023 workforce plan and with reduced use of an international workforce. Whilst moves such as the use of digital solutions, more training and development and leveraging apprenticeships are sensible, this doesn’t feel enough. The independent sector should have an increasing role to play in areas such as care delivery, digital innovation, and workforce solutions.

“It’s a tough sell to ask fewer, overworked NHS staff to deliver more transformation with less support. The independent sector must be seen as a partner, not a threat, in helping to close that gap. The future has to lie in a hybrid model where a patient can seamlessly move between Public / Private healthcare systems and not be penalised for doing so.”

— Gordon Henderson, Stax Healthcare Advisor

5. The need for better operational performance and more financial discipline is clear but how can targets really be met? The gap between ambition and reality on the ground feels enormous

Alongside execution and staffing challenges, there is some understandable scepticism around productivity targets. One could argue that calling for a more efficient system serves as a way to sidestep the tougher question of where the necessary funding will come from. This feels a bit too much like a schoolmaster shouting at a tired and broken child that they must do better. Nuffield Trust called it “heal thyself.”

Plans for productivity improvement targets, league tables, changing tariff models, and a more mid-term (5-year cycles) planning mentality are interesting but NHS bodies have had to deal with short term crises so often that the gap feels daunting. In addition, all providers need to be in surplus by 2030, yet 136 Trusts are currently in deficit with data published in February 2025 showing the worst deterioration in NHS provider financial health in over a decade.

6. Finally, the plan feels unlikely to be met without the support of independent providers and private capital but the role of both is unclear from the plan as it stands

Common sense suggests that the independent sector and private capital will have a big role to play in improving UK healthcare. Soundbites coming from the NHS and the government (particularly post Darzi report) indicate this will definitely be the case. However, the plan was strangely quiet on the subject. It mentioned the intention to develop a “business case” for NHCs ahead of the Autumn budget but offered no further detail beyond that point. Recently, private finance into NHS hospitals seems to have been ruled out other than in very limited circumstances (noted in the HSJ on 20/6/2025). So, the need feels evident but the appetite is unclear.

“There’s no pathway to success here that doesn’t include private investment—capital, tech, and delivery expertise. If the NHS wants support, it needs to stop sending mixed messages about the role of independent partners”

— Gordon Henderson, Stax Healthcare Advisor

Closing Comment

In the coming weeks and months, we hope to get more details from the Ministry of Health and NHS leadership. The new plan uses rather sensational language such as “The choice for the NHS is stark: reform or die” and few could really argue against that. Equally it is difficult to argue against the NHS needing more support from the independent sector. The future should be exciting for investors in UK health but we will all be waiting for more clarity in the next few months and through the Autumn budget. Investment hotpots and assets with the most exciting next few years should start to be more evident from then. There should be plenty of opportunities!

“The 10-year plan will need to take a pragmatic and open-arms approach to how the independent sector can help solve the long-standing challenges in the NHS. This should open up a raft of opportunities for private capital, technology players and providers to make inroads into waiting lists, improve outcomes and drive new, more efficient models of care. Winners will be those who can support “end-to-end” pathway management and get their commercial model right. It should be an exciting few years for the sector.”

— Dr. Bayju Thakar, Stax Healthcare Advisor

“Even if this plan is successful, healthcare demands will continue to increase and consume more of the budget, so funding the investment in the required area of transformation is an unresolved challenge. We need to avoid this being yet another NHS transformation “so big it can be seen from space” which once again fails to deliver. They can’t do it alone.”

— Keith Gibbs, Stax Healthcare Advisor

Featured by Reuters: How China's new auto giants left GM, VW and Tesla in the dust

Thu, 03 Jul 2025 14:58:16 GMT

BYD, Chery and other Chinese car makers have reshaped global competition through their unprecedented agility. They have found ways to develop new models in less than half the time it takes their foreign rivals, helping to drive explosive growth. In this recent Reuters special report, the primary focus is China's EV production and how this impacts global manufacturers.

Phil Dunne offered a candid take on the competitive landscape, calling out how traditional automakers simply can’t match Chinese brands on price due to the fact that they’re structurally built to be faster and cheaper. Dunne mentioned his belief in established global players still have the upper hand when it comes to knowing their customers and delivering the kind of quality and design that resonates, especially in markets like Europe.

Read the full Reuters article below, or by clicking here .

““Traditional automakers can’t compete on price because the Chinese will always win. But [in markets such as Europe, established global automakers] still have a better understanding of the customer; they have invested heavily in new models and their products are getting better.”

- Phil Dunne , Partner, Industrials

““Traditional automakers can’t compete on price because the Chinese will always win. But [in markets such as Europe, established global automakers] still have a better understanding of the customer; they have invested heavily in new models and their products are getting better.”

- Phil Dunne , Partner, Industrials

Featured by Carta: Tariffs bring uncertainty—and opportunities—for PE and M&A

Wed, 02 Jul 2025 16:57:39 GMT

Robert Lytle

Partner

This article was originally featured by Carta and was written by Kevin Dowd.

In the first weeks after the initial tariff announcement, dealmakers proceeded with caution. More recently, however, spending in the merger market has been revving back up.

The status of the new tariff regime announced by the U.S. in early April remains in flux, with negotiations that could reshape the international economy continuing to unfold as the year nears its halfway point.

In the first weeks after the initial tariff announcement, dealmakers proceeded with caution. More recently, however, spending in the merger market has been revving back up.

Rober t Lytle

Partner

In May, total M&A deal value in the U.S. climbed to $198.8 billion . That’s a 40% increase from April, when activity in the market declined due to widespread uncertainty over what trade duties would be implemented and when they would ultimately go into effect.

In many cases, this uncertainty remains about the details of how some of the world’s biggest markets will interact in the years to come. Yet investors across all types of financial markets seem to have grown much more optimistic that the results will not be too tumultuous. After plunging in early April, major public stock indexes recovered to near all-time highs . In May, spending on M&A deals experienced a similar spike.

But question marks remain. Even as deal value rises, the number of transactions taking place remains depressed. Total M&A deal count in the U.S. declined by 8% in May compared to April. On a year-over-year basis, transaction count in May was down 13%. And there appears to be a link between this decline in activity and the macroeconomic market. In an EY Parthenon report from May, almost 25% of PE GPs who were surveyed reported that they had experienced “deal disruptions” due to concerns about tariffs.

Investors are responding to the prospect of tariffs in different ways. Some see it as a dislocation that could create attractive opportunities for deals. Others see it as a looming threat to their portfolios. But for every private equity and M&A professional, it’s a serious factor to consider. In the wake of a once-in-a-generation pandemic and a major reset in corporate valuations , dealmakers are now confronting their latest recent bout of macroeconomic uncertainty.

Uncertainty breeds opportunity

In her dual roles as the founder and managing partner at Regen Capital and the CEO and chairman at Dynamix , Andrejka Bernatova is actively pursuing investments in the energy, power, and infrastructure sectors in both the private and public markets. In a career that includes prior stints at Blackstone and Morgan Stanley, she’s learned that this sort of uncertainty is nothing new. Investing is inherently a business of peaks and valleys.

But that doesn’t mean that it’s currently business as usual. In today’s market, Bernatova and her teams are looking for investments with particular appeal in the current market climate.

“What we’re doing is figuring out where the opportunities are,” Bernatova says. “In a sort of perverse way, volatility can be good, because it does create more opportunities.”

For both PE firms and corporate buyers, this can be a common approach in these sorts of conditions, according to Kip Wallen , senior director of thought leadership at SRS Acquiom , a provider of various financial services related to M&A transactions that published a recent report on M&A deal terms. In an uncertain market, acquirers can be more inclined to look at opportunities on a deal-by-deal basis and to push beyond some of their normal boundaries.

These sorts of special opportunities can take many forms, including deals with unique structures, investments in sectors where a fund might not always operate, or investments in companies experiencing financial distress or some other short-term dislocation.

“Strategics right now are being very opportunistic,” Wallen says. “Buyers are more frequently looking at the opportunity, as opposed to, say, a perfect demographic target that checks all the particular boxes.”

The impact of tariffs so far

Different types of companies and different types of private equity firms may have very different exposure to tariff-related changes.

Companies that are reliant on international supply chains are likely to be impacted the most, according to Robert Lytle , a senior managing director at Grant Thornton Stax Consulting who works with private equity firms and their portfolio companies on due diligence and value creation.

“If I’m the CEO of an auto supply company, say, I’m not sleeping well at night,” Lytle says. “And I use that as an example, but any areas like that which are reliant on supply chains could be impacted. Portions of consumer, anybody in the industrial space, industrial services.”

PE firms likely have a close eye on any portfolio companies operating in these sectors. But that’s only the first-order effect. Lytle cautions that investors should also be aware of any portfolio companies who serve customers who might be in one of these impacted industries, and how changes for those customers might trickle up to a PE firm’s bottom line.

“If I sell to tier-two auto manufacturers, then I have a customer problem,” he says. “You have to go through your portfolio and think about these things very, very carefully to get a better idea of how a business is going to perform from either a revenue side or a cost side over the next several months.”

As a general rule, Lytle says, larger private equity firms are more likely to feel the effects of higher tariffs in their portfolios. These mega-cap firms are more likely to have the resources to invest internationally or in capital-intensive industrial sectors. Midcap firms and other smaller investors, he says, often lean toward industries that may have less tariff exposure, like software and services.

He also notes that the uncertainty around tariffs have led some dealmakers to hit the brakes. Investors who were prepared to begin sale processes for portfolio companies during Q2 have opted to wait until market conditions are more clear.

“We’ve been in a lot of conversations with people recently about quality assets that have just kind of sat there,” Lytle says. “From the seller’s perspective, they’re ready to go. Knock on wood, we’re hoping those are going to start coming out [to market] in Q3 and Q4.”

Attitudes toward risk

Every investment comes with some degree of risk. But volatility can ramp up that risk factor.

When considering deals in the current uncertain environment, Bernatova says she’s particularly concerned with mitigating risk and finding ways to protect herself and her LPs from negative outcomes. As an example, she points to the contracts that a company might sign with its customers, such as an energy company agreeing to provide power on certain terms.

“There needs to be some sort of downside scenario that still works for investors,” Bernatova says. “For example, if you take a manufacturing business or an energy business, maybe you need a stronger contract that will not expose you to cost overruns. Maybe you have a higher price in terms of the engineering and operating contract, but at the same time, you have more certainty.”

In other sectors, investors trying to adapt their approach for a volatile market might have different points of emphasis. A tech investor, for instance, might be more drawn than usual to companies with strong recurring revenue streams, high retention rates, or other signs of an established competitive moat.

Implications of M&A uncertainty

This latest bout of tariff-driven market uncertainty comes at an awkward time for many players in the private markets.

At the start of the year, many investors were eagerly anticipating that 2025 would be a strong year for M&A activity, providing a long-sought and much-needed chance for fund managers to generate liquidity for their LPs. The surge of deal activity in March was a promising sign on this front. April’s slump was less encouraging. If investors are more hesitant about making acquisitions, some companies that have been waiting for exit opportunities may have to wait a little longer.

But the backlog of companies looking for liquidity isn’t going anywhere. If macro uncertainty persists, these two forces could come into increasing tension.

“There are a lot of market pressures that are really pushing on the dam,” says Wallen of SRS Acquiom. “The dam has got to burst at some point, because there’s a lot of water behind it right now, in terms of capital available among buyers and maturing companies that might not have the luxury of taking a wait-and-see approach to their exits for much longer.”

This type of market-driven tension is exactly the sort of strategic opportunity that many PE and strategic buyers are currently trying to seize. While activity may have slowed in the face of tariff-driven uncertainty, investors like Bernatova are still ready to put their capital to work.

“Looking at it from a public-market perspective or from the perspective of our private platform, it’s a good environment to invest in,” Bernatova says. “We are seeing a lot of potential opportunities to consolidate. I think it’s going to be a very interesting environment over the next six to 12 months.”

Grant Thornton Stax Named Finalist for 2025 Real Deals Sustainable Investment Awards

Tue, 01 Jul 2025 16:59:01 GMT

We’re proud to share that Grant Thornton Stax has been named a finalist in the 2025 Real Deals Sustainable Investment Awards , recognized in the category of Due Diligence Provider of the Year.

This award highlights firms that demonstrate innovation and leadership in ESG-focused due diligence —evaluating growth, client impact, and the introduction of meaningful initiatives or offerings since January 2024. Winners will be announced at the ceremony in London on 14 October 2025.

Launched in 2023 and led by Anuj A. Shah , our ESG and Impact Practice has taken a differentiated approach by embedding ESG into the heart of Stax’s core offerings—including commercial due diligence, value creation, and exit planning. Rather than treating ESG as a standalone component, our team integrates it directly into broader investment analysis, ensuring clients have a full picture of value and risk across commercial, financial, and sustainability dimensions.

We’re honored to be recognized alongside firms advancing the standard for responsible investment, and we remain committed to helping our clients navigate ESG considerations with clarity, rigor, and impact.

Anuj A. Shah

Partner, ESG

Phil Dunne

Partner

Anuj A. Shah

Managing Director, ESG

Phil Dunne

Managing Director

Grant Thornton Stax Sector Spotlight: Food & Beverage Manufacturing

Thu, 26 Jun 2025 18:45:46 GMT

Ananth a Natalegawa

Managing Director

Emerging Investment Themes in Food & Beverage Manufacturing:

As the food and beverage landscape continues to evolve, investors are recalibrating their focus to align with emerging category dynamics, operational capabilities, and macroeconomic pressures. Consumer preferences are maturing, from a push for functional claims to a desire for clean, recognizable ingredients, while manufacturers face headwinds from tightening discretionary spend and rising input costs. We explore the trends shaping F&B in 2025, the capabilities gaining traction, and where investors are finding both opportunity and resilience as they look ahead to the second half of the year.

Anantha Natalegawa

Managing Director

Category trends:

1. Quest for Real Ingredients

Consumer preferences for better-for-you F&B are evolving; maturing from a focus on functional attributes (e.g., zero sugar, high protein, no additives) to a preference for products with real, recognizable ingredients.

2. Sustained Momentum in Functional Beverages

Functional beverages remain a hot category, but smaller brands are challenged by scalability, intense competition, and the volatility of fad trends.

3. Protein Innovation

Demand for protein remains strong, with growth in traditional sources, where clean and transparent sourcing is key, and new formats such as protein-enriched pasta and sauces.

Capability trends:

Value-Added Processing Gains Traction

Across categories, value-added processing (e.g., prepared, pre-cut, pre-seasoned, pre-marinated products) is outpacing the broader market. This trend aligns with growing consumer demands for convenience and ready-to-use food solutions.

Key Drivers and Constraints: Discretionary Spending Pullback Meets Margin Pressures

Across categories, a sustained decline in consumer sentiment has resulted in reduced discretionary spending, creating headwinds, particularly for F&B manufacturers and distributors heavily exposed to foodservice channels like restaurants. This pullback is evident in the continued drop in restaurant foot traffic.

In parallel, manufacturers are also preparing for additional margin pressures driven by external factors, such as potential tariff implementations. Packaging costs, in particular, are expected to rise, adding another layer of complexity to an already challenging operating environment.

Investor Priorities and Focus Areas:

Investor behavior continues to reflect the themes outlined above, assets operating in high-interest categories or offering differentiated capabilities are attracting heightened attention and deal activity.

More broadly, there is a noticeable shift toward stability. Investors are prioritizing businesses that serve essential categories, even if growth is moderate, as they tend to be more insulated from the declining consumer sentiment and reduced discretionary spending. For example, produce distributors aligned with the retail grocery channel are receiving outsized focus relative to those tied to foodservice.

H2 Outlook: Subsectors and Opportunities to Watch in F&B

As we move into the second half of the year, investors should keep a close eye on F&B manufacturers and distributors that combine value-added capabilities with exposure to resilient, retail-focused categories.

Specifically, assets that offer processing, packaging, or convenience-oriented services in staple goods such as produce and protein stand out. These segments align well with sustained consumer demand for food-at-home options; spending that historically holds steady or even increases during periods of economic uncertainty.

Investors should also watch for specialty and premium products in resilient categories, especially those differentiated by sustainability, health, or supply chain transparency. These offerings can build stronger brand loyalty and margin.

Recent Asset Experience in Food & Beverage

Grant Thornton Stax has engaged with companies across the food & beverage ecosystem including various product segments, value chain stakeholders, and sales channels. We have a dedicated team of experts with extensive industry experience across the food & beverage industry as well as Software and Technology , Business Services , and many other industries . To learn more about Grant Thornton Stax and our expertise, visit www.stax.com or click here to contact us.

Deceptively Simple, Deeply Strategic: Why the B2B Events Industry Demands a Nuanced DD Lens

Thu, 26 Jun 2025 16:02:52 GMT

Florent J arry

Partner

The B2B events industry may appear straightforward—sell space/sponsorship; attract buyers—but its simplicity is deceptive. For PE investors, success lies in seeing past the surface to understand the growth and value creation levers that are appropriate for the target that is being considered, and what operating model underpins it all. There is no one-size-fits-all. Event organizers are a kaleidoscope of operating models, event formats, geographic and industry exposure, and growth levers .

Beneath it all, one theme is becoming more important: data is reshaping how value is created and monetized . Whether through operational efficiency, portfolio optimization, audience insights, digital matchmaking, or real-time engagement analytics, the ability to harness data will increasingly separate successful platforms from players at risk of substitution.

Based on our experience in B2B Events, Grant Thornton Stax has prepared actionable insights detailing why nuanced understanding of event organizers is key, and how investors can spot high-performing, resilient assets.

Florent Jarry

Partner

1. Driving the Industry: Not All Organizers are Alike

Organizers sit at the heart of the B2B events value chain, but there is no single “organizer model.”

The first fundamental difference lies between exhibition-led organizers and conference-led organizers. The former has space-based revenue models with strong revenue retention and visibility; the latter have sponsor- and delegate-based revenue models, typically with lesser visibility and lower revenue retention.

There are also different organizer types. Some have strong institutional links. Some are part of integrated media groups. Most are independent pure players—a category that regroups very diverse models.

Smaller players tend to focus on a particular event model whilst scaled organizers typically have a portfolio of different event types. Operating models vary, with strategies that differ (e.g., on extent of centralization, geographic and industry exposure, breadth and depth of industry engagement, or data and digital infrastructure and enablement) and gross margin-to-EBITDA conversions that also differ.

Value creation mechanics also vary, with a corresponding culture and organization. Not all management teams use the same tools, nor are they equipped to do so. Typical growth strategies include:

Pure, organic growth acceleration
E.g., through portfolio lifecycle management and event launches
Extending portfolio depth within a vertical
Extending portfolio breadth across sectors
Geographic expansion
Sponsorship development
Pricing
Development of data-enabled, digitally-delivered products
E.g., subscription content, matchmaking, marketplaces

In parallel, M&A is a typical growth route for all organizer types, as the market is hugely fragmented, generally unsophisticated at the lower end, and scaling improves the operating leverage model. M&A strategies are typically an enabler of the growth strategy as set out above.

So what? As an investor, you’re not assessing “an organizer;” you’re assessing a set of strategic and operational choices, structural assets, and a certain go-to-market strategy. Truly understanding the model that underpins current success is essential to gauge the relevance, potential and execution risks related to management’s business plan.

2. Event Types Drive Business Models and Growth Levers

Not all events are created equal. Event purpose is a driver of value, and B2B events can address different needs along the marketing funnel, from awareness to transactional, and everything in between. Understanding the role of each event in its respective industry value chain is crucial to gauge resilience, defensibility, and value creation potential. Equally important is understanding the underlying revenue model, which informs visibility and the key drivers of value creation.

For example, tier 1 tradeshows (large-scale, high-recognition events with “must attend” status and strong forward bookings) showcase high resilience, but growth may be capped without innovation. Brand equity may provide legitimacy to broaden the portfolio to address other needs of certain industry sub-segments or job functions.
Focused, small-scale tradeshows can be efficient lead gen and transactional channels for industry subsectors. Operational effectiveness and a “playbook” approach can support value creation through event replication.
Confexes (conference + exhibition hybrids) are well suited to fast-moving “ecosystem” industries such as fintech, insuretech, healthtech, or cybersecurity. Data-driven networking is central and can provide high participant ROI, a strong foundation on which to build further value for participants and monetization opportunities for organizers.
B2B festivals are a variation of the above, providing experiential, high-energy formats with possible crossover into B2C. They focus on community, content, and branding, with strong networking value. Sponsorship is a typical monetization strategy, but participant ROI needs constant attention.
Conference portfolios are typically well suited to playbook approaches that enable operational efficiencies and portfolio synergies to leverage sponsor budgets. One area of attention is striking a balance between sponsor and delegate revenues.
1:1 and hosted buyer meetings are lean, data-enabled formats, with high value per interaction. Often high-margin, growth typically comes from a focused playbook approach to replicate the format geographically and/or by job function or industry.

What does all this mean? Investors must understand event portfolios not just by vertical, position in the value chain, but also by event archetype and position in the marketing funnel. Resilience, recurrence, margins, growth options and scale potential vary materially—and so does risk.

3. Digital and Data Are the Core of Scalable Success

The events industry is increasingly recognizing the importance of customer closeness and moving away from pure serendipity for creating the right participant connections. The more sophisticated organizers increasingly focus on leveraging data to deepen their understanding of participants, improve event outcomes and monetize new services. Strong platforms use data across multiple functions, e.g.:

Pre-event : Audience targeting, buyer-seller matching, curated agendas
In-event : Engagement analytics, lead capture, behavioural insights
Post-event : Content monetization, attendee intelligence, ROI reporting for sponsors

These enablers feed into stronger NPS, supporting higher yield and repeat participation. Data also opens the door to non-event monetization models, such as communities, subscriptions, insight sales, marketplace models, and more.

So what? Organizer data readiness (organizational culture, IT infrastructure) and appetite to develop a data-rich, technology-enabled approach varies. More broadly, management teams can have very different ambitions around developing a broader community-led model or moving into what are deemed media or marketing services. Understanding the state of play and management roadmap is key to aligning on the growth ambition.

4. What PE Needs to Get Right

Organizer due diligence requires an in-depth understanding of management’s ambitions and the organizer’s operating model beyond assessing individual events. The value lies in understanding the nuances:

Management ambition : Is it strictly about growing the event platform, or developing a broader community model, holistic market access platform, or more of an integrated media platform?
Organizer structure : Centralized / playbook approach vs. devolved and autonomous event teams? How replicable is the model?
Portfolio exposure : Industry, format, geo, and event cadence all shape resilience and growth profile.
Revenue model : Recurrence vs. re-occurrence, pricing power, and upsell pathways.
Data sophistication and digital fluency : Is data core to the system? Do data-enabled insights enhance the in-person interaction, and do they create meaningful monetization opportunities?
Growth strategy and value creation : What levers does the organic growth strategy play on? How does revenue growth translate into EBITDA expansion? Does the M&A pipeline align with the growth and integration strategy?

So what? Assessing the model and growth algorithm is required for effective due diligence, at organizational and event levels.

Conclusion: Clarity Through Complexity

The B2B events space has become highly investable again. But that doesn't make the industry simple. In fact, its apparent simplicity is what makes it risky for investors who don't go deep.

Recent acquisitions by strategics (Informa / Ascential; Hyve / Possible, HLTH and Manifest) and acquisitions by PE funds (Providence & Searchlight / Hyve; Inflexion & Cobepa / Easyfairs; Advent / VNU Exhibitions; Clarion CP / Marketplace Events) have paved the way. The protracted process around Blackstone’s divestment of Clarion isn’t reflective of the broader attractiveness of the industry.

Other notable operations that we expect in the short term (e.g., Emerald, Generis, Millennium Alliance, Northstar TG or Questex in the US; CloserStill, Comexposium, Hyve, Nineteen, or Terrapinn in Europe).

Platforms that combine the optimal format, business model, and a data-enabled engine will outperform in both up and down cycles. For private equity, success lies not only in identifying growth opportunities—but understanding their underlying drivers and knowing how to scale them effectively.

For investors looking to unpack this complexity, Stax helps clients go beyond the surface. If you're evaluating a platform or building a thesis, we can help bring clarity where others see simplicity.

Grant Thornton Stax Provides Sell-side Support to Peak Rock Capital on its Sale of Amtech to Vista Equity Partners

Wed, 25 Jun 2025 20:05:52 GMT

Grant Thornton Stax congratulates Peak Rock Capital on its recent sale of Amtech Software , a leading provider of industrial software to the global packaging industry, to Vista Equity Partners. Stax provided sell-side support to the management team of Amtech and their bankers, Houlihan Lokey.

Amtech specializes in industrial software solutions for the global packaging sector, offering a comprehensive platform that spans the entire manufacturing and business lifecycle—from order entry to cash collection. Its integrated suite includes ERP, MES, and CRM tools, enabling seamless digital connectivity across operations. Established in 1981, Amtech serves a wide range of packaging manufacturers with scalable, end-to-end solutions that drive efficiency and performance.

For more details on our experience in the space, please contact the Grant Thornton Stax team:

Paul Edwards

Global Practice Leader

Jordan Abrams

Jordan Abrams

Jordan Abrams

Director

About Grant Thornton Stax

Grant Thornton Stax Provides Sell-Side Support to ProfitSolv on its Investment co-led by FTV Capital and Lightyear Capital

Wed, 25 Jun 2025 19:07:32 GMT

Grant Thornton Stax congratulates ProfitSolv , a leading provider of practice management software and payments for legal, accounting, and professional services firms, on its recent strategic growth investment co-led by FTV Capital and existing investor Lightyear Capital . Stax provided sell-side support, working closely with the ProfitSolv management team and their investment bank, William Blair.

Launched in 2020 with initial investment from Lightyear Capital and Greater Sum Ventures, ProfitSolv provides an all-in-one platform combining practice management and payment processing tools designed specifically for legal, accounting, and other professional services firms. Its user-friendly, integrated solutions cater to a broad spectrum of firms, from solo practitioners to organizations with over 150 professionals, helping drive operational efficiency and business growth.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Roy Lockhart

Global Practice Leader

Roy Lockhart

Partner

About Grant Thornton Stax

Crossing Borders, Building Value: Our UK Growth Story

Wed, 25 Jun 2025 17:27:48 GMT

Last week, I had the pleasure of joining the British American Business (BAB) Transatlantic Growth Roundtable and Awards Reception , a room full of driven founders and CEOs navigating the complexities of building and scaling across borders. The roundtable offered more than thoughtful dialogue; it felt like a collective roadmap for growth in today’s increasingly interconnected and complex world.

At last year’s reception, Grant Thornton Stax was honored to receive the US SME Growth and Investment in the UK award , a proud moment that reflected both where we were and where we were headed. While much of the consulting industry has pulled back over the last year, we’ve taken a different path, accelerating our UK expansion and turning the past twelve months into a compelling proof point of our growth strategy in motion.

Our UK Chapter: A Growth Story

Our transatlantic journey began in late 2022, with the acquisition of a boutique strategy firm in London. That move set the stage, and it was just the beginning.

By mid-2024, we had outgrown our initial office and relocated to Mayfair, placing us within walking distance of 80% of our UK addressable market. We’ve nearly tripled our UK headcount, attracted senior talent from across the industry, and built one of the fastest-growing chapters in our firm’s 30-year history.

Why the UK? Because we follow our clients. Global private equity firms are doubling down on London. The UK remains a powerhouse for mid-market M&A, and we're proud to be part of that growth.

Of course, growth across borders brings its own set of opportunities and challenges. We didn’t parachute in a “culture carrier,” we built the culture from scratch, supported by embedded leadership and a strong secondment program from our US teams. Creating a unified firm vision that feels authentic on both sides of the ocean has been a key part of our success.

But not everything translates. Brand recognition doesn’t cross borders automatically. Consulting “products” differ in tone and structure. Decision-making styles, hierarchy, even vacation norms, all vary.

Looking ahead, the UK is just the beginning. We’re using our momentum to expand further into Europe, building a team and culture that can deliver with the same excellence and edge that’s defined Stax in the US for 30+ years. While some firms are scaling back, we’re doubling down, with a clear purpose: helping our clients grow, wherever opportunity leads. Our platform, purpose-built for the pace of private equity helps our clients de-risk their investments in this globally complex environment.

Thanks to the BAB for bringing together a group of thinkers and transatlantic builders. Here’s to what’s next.

Jayson Traxler

CEO, Stax

Investing in the Future of Higher Education Fundraising

Tue, 24 Jun 2025 19:26:31 GMT

Robert Lytle

Partner

Miriam El-Baz

Managing Director

The financial model of higher education is under increasing strain. Traditional revenue streams—most notably tuition and federal funding—are facing mounting headwinds due to long-term demographic shifts and policy-driven shocks. As institutions navigate this volatile landscape, fundraising is emerging as a mission-critical lever for financial sustainability and strategic growth. Demand is accelerating for technology and services that can enable Advancement teams to modernize operations, scale engagement, and capture a greater share of philanthropic dollars—particularly as a massive $100+ trillion wealth transfer unfolds.

This inflection point presents investors with a unique window to act. As institutions urgently seek more effective fundraising solutions, early-mover platforms with differentiated value propositions are poised to capture outsized growth. With a large and underpenetrated addressable market, growing institutional willingness to pay, and a fragmented vendor ecosystem, the higher education fundraising solutions space offers investors a rare combination of investible themes.

Higher education is facing intensifying revenue-side pressure, driven by long-term secular trends as well as recent regulatory shocks.

Postsecondary enrollment—which drives tuition revenue—is expected to remain flat into the 2030s , largely due to demographic shifts stemming from declining birth rates. At the same time, new federal policy actions related to international students further challenge the tuition equation. Earlier this year, the US State Department temporarily paused new student visa processing as it prepared to implement stricter social media screening for applicants. While the Department has restarted processing as of mid-June, all applicants are now required to unlock their social media accounts for government review, which will likely dampen international student enrollment.

Rober t Lytle

Partner

Miriam El-Baz

Managing Director

Federal funding for higher education has also become more volatile. Institutions perceived to be noncompliant with Trump administration positions—particularly on issues related to Diversity, Equity, and Inclusion (DEI) and the Israeli-Palestinian conflict—may find themselves at risk of losing federal grants and contracts. More broadly, the Trump administration’s efforts to dismantle the US Department of Education have cast doubt on the long-term stability and scale of federal funding into higher education.

In this environment, fundraising has become a strategic imperative for institutions across the higher education landscape.

In the last pre-pandemic fiscal year (FY19), revenues from gifts comprised only 11% of 4-year private, not-for-profit institutions’ revenues and less than 3% of 4-year public institutions’ revenues . With traditional revenue sources under pressure, many institutions are now scaling and accelerating their fundraising efforts, setting more ambitious targets and launching new campaigns to shore up their financial health.

This heightened focus on fundraising coincides with one of the largest wealth transfers in history. Through 2048, approximately $124 trillion in assets are set to change hands . Of that amount, around $106 trillion will be inherited by younger generations—primarily Gen X, millennials, and Gen Z—with the remaining assets designated for charitable causes. For colleges and universities, this historic shift represents a critical window of opportunity to capture philanthropic dollars and strengthen long-term financial sustainability.

In response to growing fundraising urgency and opportunity, many institutions are making strategic investments in fundraising technology and services to enhance performance across the donor lifecycle (see figure below).

Typically, these solutions:

Align with one or more key stages of the donor engagement process, ranging from prospect identification and cultivation to solicitation and stewardship.
Focus on specific segments of the donor base and Advancement Office: some solutions are designed to support annual giving programs targeting smaller-dollar donors at scale, while others focus on the nuanced needs of major and principal giving teams working with high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals.

Stax-Highlighted Investible Themes

Overall, several dynamics are converging to create a highly attractive investment profile for the higher education fundraising technology and services space:

First, macroeconomic and sector-specific forces—namely stagnant postsecondary enrollment, federal regulatory shocks, and the massive intergenerational wealth transfer—are creating strong tailwinds for institutional fundraising. As Advancement Offices face mounting pressure to deliver, there is growing willingness to pay for solutions that enhance fundraising workflows and outcomes, driving net-new adoption across the sector.

Second, beyond higher education’s “mega fundraisers”—the most selective and well-endowed institutions—most colleges and universities remain significantly under-optimized in the Advancement Office. Outdated technology, manual processes, and under-resourced teams continue to hamper operational efficiency and effectiveness. As a result, there is ample unpenetrated whitespace across the sector into which fundraising solutions can scale—particularly with the support of private equity investment.

Third, while institutions increasingly seek holistic solutions that can streamline donor engagement end-to-end, the market remains fragmented. There are few, if any, scaled platforms that address the full donor lifecycle—from discovery to stewardship—despite strong demand for integrated, cost-effective, and easy-to-use solutions. This fragmentation presents compelling opportunities for private equity-led consolidation, either through platform build-ups or tuck-in acquisitions.

Finally, the space offers robust exit opportunities. Both technology and services assets in the fundraising ecosystem are well-positioned for acquisition by strategic buyers, ranging from EdTech platforms expanding into fundraising management to horizontal ERP and CRM providers seeking to deepen their presence in fundraising and/or higher education.

Conclusion

The current climate has elevated fundraising from a supporting function to a strategic imperative across higher education. Institutions are increasingly looking to modernize and scale their Advancement capabilities, creating strong demand for purpose-built technology and services as well as attractive opportunities for private equity investors . Overall, platforms that can deliver measurable impact, scale intelligently, and meet institutions where they are in their transformation journey are best positioned for growth.

To learn more about Stax and our EdTech expertise, visit www.stax.com or click here to contact us directly .

Stax Named One of the Top 50 Consulting Firms of 2025

Mon, 23 Jun 2025 13:23:55 GMT

The Consulting Report has recognized Stax as one of the Top 50 Consulting Firms of 2025 , honoring firms that excel in areas such as digital transformation, operational efficiency, and sustainable growth. In a rapidly evolving $300 billion industry, this year’s honorees stand out for their trusted partnerships and their impact on shaping industries and driving resilience.

Grant Thornton Stax is proud to be included. For over 30 years, we’ve delivered actionable, data-driven insights to private equity clients, PE-backed companies, hedge funds, and investment banks, supporting thousands of engagements across sectors and markets. We’re thrilled to be recognized for our continued commitment to excellence and client impact.

From The Consulting Report’s press release:

“Across different specialty services, the firms that comprise this year’s award have made notable improvements for their customers by identifying strategic efficiencies, implementing sustainable solutions with technology partners, and guiding digital modernization. Virtusa is helping global enterprises deploy generative AI at scale, while Publicis Sapient is rebuilding digital platforms to keep customer experience at the center of transformation. Mercer is advising clients on workforce well-being and retirement, and Stax is guiding investors through the high-stakes work of due diligence and value creation. In the industries they serve, these firms are delivering results that shape how modern businesses evolve.”

About The Consulting Report

The Consulting Report is a comprehensive source for market research and insights, business news, investment activity, and corporate actions related to the consulting sector. Based in New York City, the firm is run by a seasoned team of editors, writers, and media professionals highly knowledgeable on management consulting and the various companies, executives, and investors that make up the sector.

Exploring the Attractiveness of Verticalized Business Management Solutions in Regulated Industries

Tue, 17 Jun 2025 20:34:28 GMT

Kelsey Chisholm

Associate Director

Kelsey Chisholm

Partner

Dan Chen

Director

In an era defined by digital transformation, the demand for specialized software tailored for specific industries has grown. From the public sector (e.g., state and local government , utilities) to institutions (e.g., non-profits, schools/universities) to specialized home and field services end markets (e.g., construction , oil & gas) and financial institutions (e.g., insurance), the need for vertical-specific tools has been increasingly evident. Stax has observed several factors driving the need for vertical-specific tools across these end markets:

Regulatory scrutiny and compliance requirements
Reporting requirements and management of data
Complexity of operations
Industry-specific workflow needs
Industry-specific integration requirements

In response to this growing demand, Stax has identified key drivers of interest for investors. Further, drawing from our experience, we have compiled a list of crucial investment considerations when pursuing a potential acquisition in these spaces.

Drivers of Interest from Investors

As focus on digitization increases across the public sector and education, home and field services, and financial institutions, investor interest has grown in recent years, driven by several factors:

Significant whitespace given technological immaturity of end markets

Kelsey Chisholm

Associate Director

Kelsey Chisholm

Partner

Dan Chen

Director

Many of these end markets are tech laggards, having been slow to adopt software relative to other industries. Manual/legacy tools and processes remain the norm for many businesses, providing significant runway for continued adoption and penetration of more robust and modern third-party solutions.

ROI and mission criticality of solutions

Adopters of verticalized software are quick to recognize tangible benefits from third-party solutions (e.g., time saved, improved payment collection, etc.). Solutions often become viewed as mission critical to day-to-day operations, leading to stickiness within organizations.

Strong retention profiles

Once implemented, verticalized software tends to be sticky and customers are more resistant to switching providers. Switching solutions becomes challenging given data integration across systems, initial implementation and customization investment, and the cost and disruption to retrain the workforce.

Platform build opportunities

Software is typically built with the intent to solve a portion of a customer’s overall workflow. That said, most customers are seeking as much of an all-in-one solution as possible. An expansion strategy for many companies has been to broaden capabilities across customers’ workflows—often with success, especially when a provider is viewed as the “hub” or system of record for customers.

Extendable user base

While verticalized software is specialized and focused on serving a particular end market or niche within an end market, there are often opportunities for the software to serve adjacent end markets with similar workflows and needs, providing opportunity for total addressable market opportunity expansion.

Untapped pricing/packaging opportunity

Many of these vertical software solutions are still in early stages of their professionalization of pricing and packaging strategies. Given limited competitive pressures and criticality/stickiness of solutions, a variety of pricing levers exist, which can be utilized to drive increasing annualized contract value (ACV)–not only price increases, but potential for bundling to drive additional cross-sell and up-sell.

Attractive exit opportunities

A variety of potential exit opportunities exist for private equity firms invested in verticalized software. Not only from other private equity firms (for reasons noted above), but interest from strategic acquirers is strong—often in the form of horizontal players—as they seek to strengthen specialization, acquire new customers, and eliminate competition.

Key Investment Considerations

Stax has identified recurring themes in key hypotheses and assumptions that potential investors consider when evaluating vertical SaaS Targets for acquisition. Key considerations that warrant a deeper dive during diligence include:

Remaining Opportunity/White Space

Many of the markets noted as key end markets of interest have historically been under-penetrated, with the shift to third-party software adoption still ongoing. A core consideration is how much whitespace (or “greyspace,” in the form of more generic alternatives) actually remains, how that varies across customer segments, and how quickly that whitespace/greyspace is expected to convert.

How much runway is remaining within the Target’s core market? Which segments provide the greatest whitespace/greyspace and what is the outlook for vended market conversion?

Threat of Generalist Providers entering the vertical

Large, established industry-agnostic software providers exist across all key software categories. These generalist players serve customers across a variety of industries and are often seeking to continue to expand relevance to new end markets.

How easy/likely is it that more generalist providers will enter the Target’s core market and threaten customer retention or acquisition abilities?

True existence of a verticalized moat

What drives differentiation of the Target within its key end market and how defensible is the Target’s competitive moat within the vertical?

Applicability to adjacent end markets

Similarly, if the Target is operating within a more niche market and total addressable opportunity size more limited, investors need to believe there is viable opportunity to expand into new end markets to increase the total addressable market.

Where is there a strong product-market for the Target outside of its core vertical? How viable is the expansion opportunity into prioritized end markets?

Conclusion

With many industries continuing to shift preferences towards industry specific software, investment opportunities are prevalent and private equity’s interest in vertical SaaS solutions remains strong. Across a variety of complex and regulated end markets, there are common themes, theses, and key considerations. Stax's insights underscore the critical importance of thorough due diligence and targeted investment strategies to maximize returns in the vertical SaaS sector.

Stax has 30+ years of experience evaluating software and technology providers across verticals, including substantial experience with verticalized software. This experience includes commercial due diligence across the buy-side and sell-side, in addition to value creation engagements across the private equity lifecycle. To learn more about Stax or our expertise, visit www.stax.com or click here to contact us directly.

Featured by Management Consulted — Behind the Scenes at Stax: Private Equity Consulting with Brad Kuntz

Tue, 17 Jun 2025 19:15:21 GMT

In this episode of Strategy Simplified, Brad Kuntz , Partner at Grant Thornton Stax, offers a real look at what makes Grant Thornton Stax tick. Brad shares how Grant Thornton Stax’s private equity focus, small-team model, and fast-paced culture set it apart - and what that means for consultants at every level. We dive into his career path, a surprising case in the industrial sector, and what type of candidate thrives at Grant Thornton Stax (hint: it’s about curiosity and flexibility). Plus, he shares practical advice for landing a role and building a meaningful career in consulting.

Brad Kuntz

Partner

Brad Kuntz

Partner

Stax Sector Spotlight: Revenue Cycle Management (RCM) & Healthcare Information Technology (HCIT)

Tue, 17 Jun 2025 18:22:05 GMT

Rob Larson

Managing Director

Emerging Investment Themes in RCM and HCIT

Investor focus in Revenue Cycle Management (RCM) and Healthcare Information Technology (HCIT) is shifting toward scalable, efficiency-driven solutions. Key growth areas include automation, patient engagement, and value-based care tools, while interest in stand-alone analytics and full RCM outsourcing is declining. Here's a snapshot of what’s gaining traction and what’s losing momentum.

Areas Showing Accelerated Growth:

Rob Larson

Managing Director

RCM Automation

Strong momentum in automating revenue cycle management, particularly in back-end functions like coding, denials, accounts receivable (AR), low-balance collections, and prior authorizations.

Patient Access & Engagement

Growing emphasis on consumer-centric solutions, including digital intake processes, eligibility verification, prior authorization, and streamlined patient payment platforms.

Care Coordination in Value-Based Models

Heightened focus on tools that facilitate coordination of care within capitated or value-based care arrangements, benefiting both providers and payers.

Tech-Enabled Alternate Sites of Care

Increased investment in technology solutions that support care delivery in alternative settings such as the home, ambulatory surgery centers (ASCs), and to a lesser extent retail clinics.

Areas Experiencing Challenges:

Fully Outsourced RCM Models

Selective appetite among the largest health systems for full-scale RCM outsourcing, with a “wait-and-see” attitude in the market as automation matures; co-managed or phased deals often preferred over long-term, full-scope contracts.

Stand-Alone Population Health Tools

Declining demand for stand-alone analytics-only population health platforms, as integration becomes more of a priority.

Direct-to-Consumer Virtual Care

A shift away from purely virtual DTC primary care models toward hybrid care delivery approaches.

Medicare Advantage Risk Adjustment

CMS rule changes have capped easy RAF upside, but vendors that capture diagnoses accurately and consistently boost Star ratings still deliver substantial value.

Key Market Drivers and Constraints: Navigating the Shifting Landscape

As the healthcare ecosystem continues to evolve, a combination of regulatory shifts, payer-provider dynamics, and technology adoption is reshaping where value lies, and how it's captured. Below is a summary of the key drivers fueling innovation and investment, as well as the constraints that may limit adoption or impact strategic direction:

Key Drivers:

AI Adoption

AI is rapidly moving from hype to deployment, with use cases expanding beyond human-in-the-loop applications to more autonomous functions, particularly in areas like medical coding, which are moving rapidly toward full automation.

Provider Focus on Margin Optimization

Margin compression remains a core issue across care settings, particularly for smaller or less network-advantaged providers.

Rise in Patient Financial Responsibility

High-deductible health plans (HDHPs) have made patient responsibility a critical part of the revenue cycle. Understanding payment behavior and delivering consumer-friendly experiences is now essential.

Increasing Payer Complexity

Tougher payer rules like prior authorization and step therapy are squeezing provider margins. Providers must manage these growing administrative burdens, creating opportunities for tech-enabled solutions that address payer friction.

Key Constraints:

EHR Interoperability Challenges

Costly, slow integrations, especially with dominant platforms like Epic, remains a barrier to seamless data exchange and workflow automation.

Budget Pressures and ROI Scrutiny

Buyers face mounting financial constraints, as CFOs demand faster payback and clear labor cost offsets before adopting new technologies.

Regulatory Shifts

CMS continues to tweak risk-adjustment formulas and Star rating calculations, making revenue projections difficult and underscoring the need for adaptability.

Point Solution Fatigue

Providers are increasingly consolidating tools, favoring roll-ups and cross-sell strategies from vendors with broader capabilities.

Investor Priorities and Focus Areas:

Investor interest in healthcare is increasingly centered on scalable, tech-enabled solutions that deliver measurable ROI. AI adoption is a key focus, especially in high-value areas such as medical coding and denials management. Its potential to reduce costs and boost productivity is accelerating adoption across the board.

Margin compression across care settings, particularly for smaller, less-integrated providers, continues to drive demand for tools that improve operational performance. Similarly, the scope of patient financial responsibility under high-deductible health plans is pushing providers to adopt more consumer-friendly payment and engagement solutions.

Growing payer complexity, including prior authorizations and step therapy requirements, is another driver of investment. Platforms that help providers manage administrative burdens and streamline RCM are seeing increased attention, even as payers adopt AI technology of their own.

Overall, investors are prioritizing companies that offer real EBITDA impact, can serve down-market segments like physician groups and mid-market health systems, and consolidate fragmented point solutions to simplify go-to-market strategies.

Outlook: Subsegments and Opportunities to Watch

While many of the trends shaping the first half of the year are expected to continue, a few developments stand out as worth watching from an investor perspective. One area to monitor is R1’s partnership with Palantir , a potential bellwether for whether true end-to-end RCM automation can be achieved at scale.

More broadly, the RCM space continues to attract attention, particularly around roll-up strategies that combine BPO and tech capabilities, such as New Mountain’s push into AI-enabled RCM and other PE-backed plays. These efforts reflect a broader push toward consolidation and platform-building to serve an increasingly complex provider landscape.

Additionally, there is growing interest in agentic automation , particularly in the back end of the revenue cycle, where standalone solutions may be attractive rollups, presenting a competitive alternative to larger incumbent players.

Stax RCM & HCIT Experience:

About Grant Thornton Stax

Grant Thornton Stax is a global management consulting firm serving corporate and private equity clients across a broad range of industries including software/technology, healthcare, business services, industrial, consumer/retail, and education. The firm partners with clients to provide data-driven, actionable insights designed to drive growth, enhance profits, increase value, and make better investment decisions. To learn more, visit www.stax.com or click here to contact us directly .

Emerging Themes for Investors in the Outdoor Enthusiast Market

Mon, 16 Jun 2025 14:19:30 GMT

As a result of recent project work, in tandem with over 30+ years of experience serving PE clients across a variety of markets and subsectors, we have compiled our top list of emerging investment themes in the outdoor enthusiast sector for the first half of 2025. Highlighting various headwinds and tailwinds, the following items are Stax top six key investment themes in the outdoor enthusiast sector:

Emphasis on proving tariff resiliency, either based on markets the Company sells into (e.g., ex-US market presence) or where the Company manufactures (e.g., non-Chinese mfg.).
For companies that do have differentiated cost positioning, opportunity exists to opportunistically gain share as competitors face higher prices—both at the retailer and consumer level.
Across the board, companies are still seeking to understand consumer price elasticity in a high tariff environment, impacting the ability to pass on price increases without
impacting demand levels.

Emphasis on proving tariff resiliency, either based on markets the Company sells into (e.g., ex-US market presence) or where the Company manufactures (e.g., non-Chinese mfg.).
For companies that do have differentiated cost positioning, opportunity exists to opportunistically gain share as competitors face higher prices—both at the retailer and consumer level.
Across the board, companies are still seeking to understand consumer price elasticity in a high tariff environment, impacting the ability to pass on price increases without
impacting demand levels.

Emphasis on building recurring revenue exposure across products and services business, often via tech-enablement (e.g., tech-enabled product with an integrated app)
Additional benefits include greater repeat participation with the product due to social/community engagement, gamification, etc. benefits from tech usage—e.g., tech-enabled golf ball with an app to track performance, compete against peers, etc.

Emphasis on building recurring revenue exposure across products and services business, often via tech-enablement (e.g., tech-enabled product with an integrated app)
Additional benefits include greater repeat participation with the product due to social/community engagement, gamification, etc. benefits from tech usage—e.g., tech-enabled golf ball with an app to track performance, compete against peers, etc.

Branded products companies are increasingly leveraging owned manufacturing capacity for both own branded product, as well as white labeled offerings (e.g., for corporate partners, other brands, etc.), reducing brand-specific risks.

Branded products companies are increasingly leveraging owned manufacturing capacity for both own branded product, as well as white labeled offerings (e.g., for corporate partners, other brands, etc.), reducing brand-specific risks.

Though outdoor activity has remained mostly flat post-Covid, individuals that remain engaged, particularly those that are newer to outdoor, have high propensity to spend, supporting ongoing category growth.

Though outdoor activity has remained mostly flat post-Covid, individuals that remain engaged, particularly those that are newer to outdoor, have high propensity to spend, supporting ongoing category growth.

Brands are increasingly seeking to be precise in consumer targeting, aligning brand positioning and messaging to the specific needs and preferences of that target audience. As such, brands with a strong DTC channel presence are often advantaged given their customer connectivity and access to data; that said, brands selling across channels are increasingly completing scaled consumer research to understand consumer needs on a regular basis.

Though outdoor activity has remained mostly flat post-COVID, individuals that remain engaged, particularly those that are newer to outdoor, have high propensity to spend, supporting ongoing category growth.

Companies that are able to leverage connection to professionals are seeing success in the broader enthusiast spaces, with consumers seeking out brands for hobbyist use cases that are “approved” by professionals (e.g., purchasing biking gear used by professional cyclists).
Increasingly, professionals across spaces are acting as social media influencers, broadening their reach to new audiences and supporting brand expansion.

Companies that are able to leverage connection to professionals are seeing success in the broader enthusiast spaces, with consumers seeking out brands for hobbyist use cases that are “approved” by professionals (e.g., purchasing biking gear used by professional cyclists).
Increasingly, professionals across spaces are acting as social media influencers, broadening their reach to new audiences and supporting brand expansion.

About Grant Thornton Stax

Grant Thornton Stax has 30+ years’ experience working across numerous deals in a variety of markets, including the sports & outdoor markets, and has continued expanding expertise. More recently, Grant Thornton Stax has expanded its offering to include ESG and Impact advisory , which can be intertwined with our core CDD work to help investors throughout the investment lifecycle, maximizing value creation potential. To learn more visit www.stax.com or click here to contact us .

Sameer Tejani

Director

Samantha Pinkes

Director

Sameer Tejani

Managing Director

Samantha Pinkes

Director

Driving Growth and Returns: PE Opportunities in Capital Markets Regulatory Reporting Software

Fri, 13 Jun 2025 19:46:42 GMT

Phil Dunne

Partner

Jai Si ngh

Director

Introduction: Capital Markets Regulatory Reporting Software

Capital markets operate under stringent regulations such as MiFID II and EMIR, aimed at ensuring stability, transparency, and investor protection. In highly interconnected, high-stakes markets, these regulations are essential for maintaining financial stability by controlling systemic risks, safeguarding the broader financial ecosystem, and reinforcing investor confidence.

To ensure full compliance, companies must navigate a complex array of regulatory filings, which Stax categorizes into six key reporting areas:

Phil Dunne

Partner

Jai Singh

Director

The significant volume and frequency of these reports drives significant spending on regulatory reporting. Stax estimates that the total global expenditure on regulatory reporting activities within capital markets, encompassing both personnel and technology spend, is approximately $90 billion.

Market Context

Currently capital market participants use different approaches and provider types to meet these reporting requirements:

As regulations become increasingly stringent—such as the aforementioned MiFID II, EMIR Refit, and Basel III—banks and asset managers are facing heightened compliance challenges. These new and evolving requirements are driving up compliance costs and demanding extensive operational changes. With regulators enforcing rules more rigorously than ever, there has also been a sharp increase in penalties resulting from non-compliance, with the recent years setting records for enforcement actions across both the SEC and CFTC.

Beyond monetary fines, the reputational risks of non-compliance are equally critical. For instance, a poor transaction reporting record can damage relationships with both regulators and counterparties, leading to a loss of clients and revenue for financial institutions. Failed compliance often also leads to increased regulatory scrutiny and extensive remediation efforts, such as re-reporting trades for up to five years, which can require substantial time and resource commitments, adding further pressure on stretched compliance teams.

As regulatory requirements grow increasingly complex, capital market participants are increasingly leveraging specialized third-party software solutions to implement more robust, scalable compliance measures. These solutions proactively address compliance risks, ensuring smoother operations and a more reliable compliance record. Key benefits include:

Higher Accuracy and Fewer Errors: Domain-specific precision minimizes errors and ensures accuracy for complex, compliance-driven markets.
Regulatory Assurance: Continuous updates and alignment with evolving regulations enhance compliance confidence and reduce penalty risks.
Cost Efficiency & Quick Implementation : Reduced customization needs, and less manual oversight make these solutions cost-effective and easy to deploy.
Reduced Manual Oversight: Automated processes and exceptions handling streamline operations and lower operational risks.
Scalability & Adaptability: Modular design allows for seamless adjustments to growth or regulatory changes, ensuring long-term competitiveness.

The provider landscape for specialized solutions is highly fragmented, with players focusing on different reporting segments, regions, regulations, client type, client size, etc.

PE Interest and Activity in Specialist Reporting Solutions

These businesses present compelling investment opportunities for PE funds and have seen strong PE interest and activity.

Strong Market Demand & Growth Potential: Regulatory and operational pressures drive ongoing demand for specialist solutions to replace non-specialized and/or in-house solutions, offering clear growth opportunities and promising returns for investors.
High Recurring Revenue : Subscription-based models ensure stable, predictable revenue, with steady demand even in economic downturns. Deep client integration reduces switching risks and enhances long-term revenue potential.
Competitive Moat Through Expertise: Specialist solutions dominate niche markets with tailored compliance features, creating high entry barriers for competitors and fostering strong client retention.
Platform Play & Acquisition Potential: PE investors can use specialist solutions as platforms for bolt-on acquisitions, expanding capabilities and building comprehensive offerings in a fragmented market.
Attractive Exit Opportunities: High demand and growth prospects provide multiple lucrative exit options, including sales to PE firms, strategic buyers, or IPOs, maximizing investment appeal.

Investment Considerations for PE

1. Addressable Market Opportunity

Market Size: The Total Addressable Market (TAM) for regulatory reporting solutions varies significantly— we have seen $150 million to $10 billion—depending on factors such as reporting type, geographic scope, regulatory regimes, etc. Accurate market sizing is essential to ensure alignment with the investment thesis.
Whitespace Opportunity: Market penetration varies across segments, for example, areas like Best Execution/TCA have relatively higher penetration of third-party solutions, although not necessarily specialist solutions. Evaluating whitespace requires looking beyond industry level adoption to understand customer adoption, as many firms may not fully utilize third-party technology across all of their needs.

2. Competitive Differentiation

Identifying Key Competitors: Although there are numerous providers in the market, our experience shows typically only 4-5 key competitors emerge, based on their specialization in client type, size, and service offering. Identifying these key players is essential to assess the solution’s right to compete and succeed.
Brand Reputation: Beyond technical capabilities, brand reputation is critical. Clients value providers with a track record of success with similar customers in comparable situations. Additionally, using well-established providers often attracts less regulatory scrutiny, making brand strength a significant differentiator.
Product Capabilities: Key features that enhance attractiveness include comprehensive asset class coverage for streamlined reporting, seamless data integration for efficient handling of large volumes, and automation to reduce manual effort and compliance costs. Scalability ensures adaptability to regulatory changes, while cloud-based (SaaS) deployment offers flexibility and cost savings.
Regulatory Expertise & Adaptability: Clients prioritize vendors with senior leadership that has deep regulatory knowledge and a demonstrated ability to stay ahead of regulatory changes, ensuring compliance and reliability.

3. Growth and Profitability

Revenue Growth: Company’s revenue trajectory should ideally showcase rapid growth that aligns with regulatory changes and ongoing adoption trends. Consider growth drivers such as increased business with existing clients, acquisition of new logos, and distinguish between organic and inorganic growth, as these companies are often acquisitive.
Profitability: Analyze profitability or the path to break-even, noting that regulatory software firms typically incur high R&D expenses to maintain a competitive edge.

4. Prioritization of growth opportunities

Increase Share of Wallet : Many clients do not fully leverage third-party solutions or use the same vendor across all reporting needs, such as reporting all transactions through one provider. Strategic account management can drive increased share of wallet by expanding the vendor’s footprint within existing clients.
Cross-Sell and Upsell: Leverage existing relationships to introduce complementary products and higher-value offerings, maximizing revenue potential from each client.
Expand Regime Coverage: Broadening coverage to include additional regulatory regimes can unlock new revenue streams and make the solution more attractive to clients seeking comprehensive compliance across multiple jurisdictions.
Geographical Expansion: With capital markets heavily concentrated in the U.S. and Europe, there is an opportunity to leverage existing relationships to enter new geographies. Successful international expansion often requires establishing a local presence to drive growth.
Broaden Client Type and Size Coverage: Tailoring the product to address the unique needs of different client segments, such as banks versus asset managers or creating lighter versions for smaller, Tier 2 clients, opens new market opportunities.
Acquire Players in the Same Niche: In a fragmented market, acquiring competitors can enhance scale and market presence.
Acquisitions in Adjacent Segments: With overlapping decision-makers and a preference among smaller clients for simplified, one-stop-shop solutions, acquiring adjacent technologies can deliver significant value and streamline the tech stack for customers.

Conclusion

Private equity interest in specialist regulatory reporting solutions remains robust, driven by strong market demand, high recurring revenue, and significant growth potential. These businesses offer compelling investment opportunities as regulatory and operational pressures encourage the shift from non-specialized to advanced solutions. Additionally, these solutions present attractive platform plays for bolt-on acquisitions in a fragmented market and offer multiple exit strategies, from strategic sales to IPOs.

Key investment considerations include accurately sizing the addressable market and evaluating whitespace opportunities to align with the investment thesis. Competitive differentiation is crucial, focusing on identifying key players, brand reputation, and product capabilities. Revenue growth should be analyzed alongside drivers like client expansion and new logo acquisition, distinguishing between organic and inorganic growth. Prioritizing growth opportunities—such as increasing share of wallet, cross-selling, expanding regime and geographic coverage, and strategic acquisitions—can maximize returns and strengthen market positioning.

To learn more about Stax and our expertise, visit www.stax.com or click here to contact us directly.

Stax Sector Spotlight: Home Health

Fri, 13 Jun 2025 16:37:34 GMT

Rob L arson

Partner

Jordan A brams

Director

In-Home Care Expands: Personal Care, Nursing, and Therapies Drive Market Momentum

The home health sector continues to show strong growth, with key service areas expanding at high single-digit to low double-digit rates year over year. Notably, personal care services, including unskilled support for daily living, are experiencing robust demand, driven by an aging population and preference for in-home support.

Concurrently, there is robust and sustained growth across skilled nursing, home infusion services, and home-based therapies, including physical, occupational, and speech therapy, driven by increasing demand for cost-effective, patient-centered care in alternative settings.

All of these trends reflect a bigger shift in healthcare, moving care out of facilities and into the home—making Home Health one of the most attractive areas for investment within the broader healthcare landscape.

Key Drivers and Constraints in Home Health

The growth of the home health sector is propelled by a confluence of demographic, clinical, and economic factors. Chief among them is the rapid expansion of the 65+ population, the fastest-growing age group in the US, which is driving sustained demand for both skilled and non-skilled in-home services. This population prefers to receive care at home over institutional settings, boosting demand for both skilled and unskilled in-home services.

Advancements in clinical protocols have also played a critical role, particularly in home infusion, where improved safety standards and technology have made it feasible to administer complex therapies outside of a hospital setting.

On the constraint side, workforce availability remains a critical challenge. Demand for in-home caregivers and skilled clinicians is outpacing supply, putting pressure on staffing models and limiting the ability of some providers to scale.

Rob Larson

Partner

Jordan Abrams

Director

Investor Interest and Behavior in Home Health

Investor demand in the home health sector remains strong, with particular emphasis on scalable, cost-effective care models that align with both patient preferences and payer incentives. Personal care services—which assist with essential activities of daily living such as bathing, grooming, and meal preparation—are attracting increased investor interest due to their recurring revenue profile and critical role in comprehensive, long-term care strategies. Notably , franchise-based models are coming to market with greater frequency, giving investors clear ways to grow. They offer solid financials, geographic expansion opportunities, and operational playbooks that can be scaled across regions.

Home infusion is a top focus for investors due to its fast growth and lower cost compared to hospital care. As payers push for cheaper care settings, it offers a safe and efficient way to treat patients at home while keeping costs down.

H2 Outlook: Home Health Investment Opportunities

In the second half of the year, investor interest in Home Health is expected to remain strong, with a clear focus on two high-opportunity segments. First, personal care services , particularly unskilled care models, are attracting growing attention, with franchise-based businesses leading the way. A recent example is the sale of US personal care services provider Synergy HomeCare Franchising, which signals momentum for future deal activity in the space. These models offer scalability, recurring revenue, and rising demand tied to aging demographics and patient preference for in-home support.

Second, home and ambulatory infusion providers , especially those that own and operate their own pharmacies, are likely to see increased investor activity. These businesses benefit from both clinical control and vertical integration, enabling better margins and stronger payer relationships. As payers continue steering patients toward lower-cost care settings, these platforms are well-positioned to capture growth and deliver strong ROI.

Representative Recent Home Health Experience:

Stax has helped a variety of clients across the home health ecosystem through various stages of the deal lifecycle. Our Healthcare vertical has worked for 30+ years to deliver PE investors actionable insights to help drive value creation and create growth opportunities that lead to successful exits. To learn more about our Healthcare expertise, visit our Insights page or click here to contact us directly .

Navigating the Evolving Landscape of Youth Sports Management Platforms: Insights from the Field

Fri, 13 Jun 2025 14:09:09 GMT

Owen Tindle

Managing Director

Youth sports management platforms have become essential digital infrastructure for clubs and organizations across the US, evolving around three foundational needs—registration, scheduling, and communication:

Manage registration , including player sign-ups and team rosters
Coordinate scheduling for practices, games, and events
Communicate with parents, players, fans, and coaches via app, text, and email

As participation grows and the professionalization of youth sports accelerates, technology has become indispensable for leagues, clubs, and teams.

Market Momentum: Key Trends Fueling Growth and Investment

Owen Tindle

Managing Director

As we discussed in our previous article, Scoring Big: Growing Sports Interest & the Rise of Sports Management Software , the youth sports management software (SMS) market is gaining traction due to several converging trends and mounting investor interest. These dynamics highlight a set of core capabilities shaping the space:

Rising participation

Growth in youth leagues and amateur clubs has heightened the need for structured platforms that manage registrations, event scheduling, and team rosters.

Core administrative functions

Solutions like TeamSnap and SportsEngine help simplify administration, from player management to communication and fee collection.

Advanced technology integration

The increasing adoption of data analytics, live streaming, and AI tools is enhancing both performance tracking and personalized engagement.

Investor Interest

The rise of sports-focused funds and a wave of funding rounds and acquisitions reflect long-term confidence in the sector’s growth potential.

Post-Covid market evolution

The pandemic accelerated the professionalization of youth sports by thinning out less formal, resource-limited organizations, creating space for more entrepreneurial, tech-enabled operators.

Youth sports specialization

Early sports specialization and rising consumer willingness to invest in youth development are driving demand for management platforms—contributing to a 46% increase in spend per child since 2019.*

*Source: 2025 You Sports Parent Survey, Aspen Institute Project Play Initiative, Utah State University Families in Sports Lab, Louisiana Tech University Minds in Motion Lab

Feature Sets Define the Field

These platforms differentiate how they layer functionality around the core capabilities. LeagueApps serves larger, more complex clubs with advanced analytics and payment configurations, while TeamSnap stands out for its feature-rich mobile experience. PlayMetrics captured significant share in youth soccer through purpose-built tools like field and practice planners. Crossbar, by contrast, has gone deep into ice hockey, integrating stat tools and facility scheduling to win over clubs previously loyal to SportsEngine.

Increasingly, providers are also looking to boost average revenue per customer through add-on services (i.e., athlete insurance, branded fan shops, and media streaming). Larger platforms are even acquiring companies outright, as in the case of TeamSnap acquiring a coaching and media platform (MOJO). As growth from new customers levels off, the focus has shifted to monetizing the base more effectively.

For niche tools like advanced tryout management, however, building in-house hasn’t proven worthwhile—leading to selective third-party integrations that offer specialized value without the development burden.

Market Leaders: Profiles of the Top Players

In a relatively fragmented market with a number of contenders, five platforms currently lead the US youth sports management landscape for team sports. While there are similarities in offerings, each platform seeks to stand out through a combination of target segment focus and feature breadth:

*Since the writing of this article, Stack Sports acquired Playmetrics in June 2025, gaining access to a fast-growing, premium customer segment and expanding its platform to support potential future bolt-on capabilities and functionality.

Beyond the Market Leaders: Emerging Niche Players in Youth Sports Management

While top platforms dominate the broader youth sports management space, a number of smaller vendors are gaining traction by targeting specific customer segments and underserved needs:

Sprocket

Sprocket caters to mid-sized clubs (500–1,000 athletes), offering seamless QuickBooks integration and streamlined data migration. Its localized go-to-market approach—starting in Chicago and expanding to Texas and Los Angeles—emphasizes direct relationships with club leaders. Sprocket stands out for its lower processing fees and specialized tools for managing tryouts, camps, player stats, performance, nutrition, and analytics.

Crossbar

Focused on ice hockey and football, Crossbar offers robust facility management features such as ice time scheduling, lesson booking, and zone-based block management. With competitive pricing and tailored capabilities, it effectively fills functionality gaps left by broader platforms like TeamSnap and SportsEngine.

Jersey Watch

Jersey Watch targets small, entry-level programs with an all-in-one, easy-to-use platform. Its integrated website and backend, combined with intuitive editing tools, enable quick onboarding. Its simplicity and affordability have fueled impressive growth, especially among clubs just getting started.

Other Notables

Vendors like GotSoccer, Rocket Sports, Byga, and Callplaybook continue to succeed in niche markets by focusing on specific sports or regional needs. Though smaller in scale, their tailored offerings deliver strong value to their target segments.

Many of these emerging players have gained share from larger, legacy vendors—some of which are evolving into broader, stagnant holding companies—by offering more specialized solutions. Their success is driven by focused feature sets, clear customer alignment, and hands-on support that resonate with a relatively less tech-savvy user base.

Looking Ahead

The youth sports tech ecosystem is maturing, but growth remains strong. Winning platforms balance broad accessibility with specialized functionality, while embedding tools that deliver value to both organizers and end-users.

Additional success factors for continued growth and competitiveness include:

Adopt a holistic approach to youth sports, delivering value to all relevant stakeholders—coaches, fans, clubs, leagues, and governing bodies.
Clearly define target customer segments, then align the product roadmap to each segment’s unique needs.
Offer personalized support and configurable features tailored to each customer segment.
Pursue inorganic growth opportunities that not only expand revenue but also create backend product synergies (e.g., integrated registration with inventory and fulfillment).
Maximize revenue capture at registration by bundling add-ons—uniforms, equipment, instructional videos and more—into the purchase flow.

As youth sports become more professionalized and new technologies reshape expectations, the most agile platforms will be best positioned for long-term success.

About Grant Thornton Stax

Grant Thornton Stax has 30+ years of experience evaluating software and technology providers across verticals. This experience includes commercial due diligence across the buy-side and sell-side, in addition to value creation engagements across the private equity lifecycle. To learn more about Stax or our expertise, visit www.stax.com or click here to contact us directly .

Anuj A. Shah Featured on The Consulting Report's Podcast: Top Sustainability Consultant

Wed, 11 Jun 2025 19:30:05 GMT

Grant Thornton Stax Partner A nuj A. Shah recently joined the Top Sustainability Consultant podcast hosted by T he Consulting Report , to discuss his career, his approach to ESG-integrated diligence, and what's driving people toward impact investing. Hosted by RJ Limba, the 25 minute show highlights nominees of their "Top Consultant" lists to learn more about them and how they do the work they do.

Tune in to the episode to learn more.

Anuj A. Shah

Partner

Software & Services M&A: Market Momentum and Key Trends

Wed, 11 Jun 2025 17:53:44 GMT

What We’re Seeing in Software and Services M&A Right Now

Far from slowing, M&A activity in software and services is showing signs of acceleration—and much of it is being driven by strategic tailwinds, not short-term noise. The last few months have confirmed that these sectors remain among the most resilient and active in the current market, and there’s increasing clarity regarding which sub-segments are seeing the most traction. At Grant Thornton Stax, we’re seeing this firsthand through record deal volume and a rising number of mandates across both buy-side and sell-side engagements.

Market Context: Strong Tailwinds in Software and Services

While macroeconomic volatility, including interest rate uncertainty and geopolitical tensions, has impacted the broader M&A landscape, the software and services sectors remain notably resilient.

Indeed, the current softness in other sectors has driven increased focus—and competition—toward software and services. Within software too, vertical SaaS continues at pace, less at risk from AI disruption as we see in some horizontal sectors.

A Deep Pipeline of Assets

One of the structural reasons Grant Thornton Stax expects activity to remain high is the sheer size of the opportunity set. Today, there are over 3,000 PE-backed software and services assets, and more than 1,500 have been held for over three years. That’s a meaningful pipeline of companies likely heading to market over the next 12–24 months.

Simultaneously, the number of PE funds explicitly targeting software and services has grown significantly in the past five years. These funds are competing across size ranges and geographies, driving up demand—and increasing the pressure to differentiate through earlier, more strategic engagement.

What’s Hot: Subsector Highlights

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Trends We’re Watching

In addition to sector-level activity, we’re observing a few notable trends shaping how deals are being done:

1. Value creation and sell-side work are blending.

More sponsors are engaging us for late-stage ownership growth work, even before a formal sale process. These projects help investors better understand where a business sits in its market, identify low-hanging fruit, and surface potential sell-side issues. The relative market POV—how a company stacks up against peers—is more important than ever.

2. Diligence is happening earlier.

We're increasingly brought in before management meetings to help sponsors get smarter, faster—particularly in competitive processes. The right POV early on is a differentiator, helping investors shape better questions, hypotheses, and value creation theses.

3. Diligence is growth-oriented.

Growth planning is now core to diligence. Sponsors want to know not just whether an asset is sound, but how fast it can grow. We're seeing deeper analysis around pricing, sales efficiency, customer segmentation, and cross-sell. In many cases, diligence is becoming the new 100-day plan.

Our Perspective: Supporting Over 200 Deals a Year

At Stax, we bring a unique view of this market. We support over 200 deals a year across software and services, working with investors across size ranges—from large-cap to growth equity. This allows us to see trends across the deal spectrum and understand both where competition is heading and how best to get ahead of it.

Importantly, we’ve seen a sharp rise in buy-side growth work—underscoring how investors are adapting their approach. This is particularly true in software, where the market's competitive dynamics make it essential to show up prepared and with a clear edge.

On the sell-side, volume has also surged. The last 2–3 months have been among our busiest ever in both software and services, and all signs point to that trend continuing. There’s a growing sense that now is the time to position quality assets for sale, particularly in subsectors where demand remains high.

Why It Matters Now

Despite broader M&A volume being down YoY, software and services are outperforming. In a market where many dealmakers are delaying processes, strategic sponsors are leaning in—relying on sector insights, early prep, and differentiated diligence to win.

That’s where we come in. Whether you're looking to sharpen your thesis, prepare an asset for exit, or get a jump on your next buy-side process, we’re here to help.

Let’s talk.

Unlocking Value Post-Acquisition: How a Pricing Diagnostic Can Drive Margin and Growth

Wed, 11 Jun 2025 15:21:32 GMT

Alex Erines

Director

Pricing is one of the most impactful levers in the private equity value creation toolkit. Across dozens of engagements with middle-market private equity portfolio companies, I’ve consistently found that strategic pricing improvements can unlock significant revenue and margin, often with limited disruption.

That’s why, at Grant Thornton Stax, we developed a focused 2–3-week Pricing Diagnostic to rapidly identify, size, and prioritize pricing opportunities post-close.

This article introduces our Pricing Diagnostic product, offering an overview of the approach, typical pain points, and how this effort is an efficient and effective initial step to maximize a portfolio company’s pricing potential.

Pricing Deserves a Seat at the Strategy Table

Alex Erines

Director

Pricing is a powerful lever companies can pull to realize their strategic ambition. Yet, many companies set pricing reactively and use discounts too liberally to win customers. Further, pricing strategy is rarely reassessed as their product portfolio and customer mix evolve.

As we help sponsors and management teams understand the breadth and magnitude of pricing opportunities within their portfolio companies, we encounter several common challenges:

Over-reliance on discounting to drive growth : Particularly in the earlier stages of growth, companies often overuse discounting to acquire and/or retain customers. Ultimately, these discounts persist beyond their intended purpose, unfavorably impacting customer lifetime value and the company’s ability to scale margin.
One-size-fits-all pricing : Without a clear understanding of segment-specific needs and willingness-to-pay, companies have difficulty effectively differentiating their pricing. This lack of differentiation can simultaneously misprice entry-level offers for price sensitive customers while also leaving money on the table in premium segments.
Misalignment with customer perceived value : Pricing is often determined using internal inputs (e.g., cost) or basic competitor benchmarks, rather than being grounded in customer perceived value. This disconnect can instigate suboptimal outcomes such as lower customer satisfaction and missed upsell opportunities.
Commercial ownership and governance : Pricing is the economic link between business strategy and revenue, yet it often exists in a functional gray zone without an assigned owner and divorced from ongoing performance measurement. In the absence of clear accountability and structured processes, it is challenging for companies to maintain both internal alignment to their goals as well as external market alignment.

As part of the Pricing Diagnostic, we analyze internal company data and conduct stakeholder interviews to uncover what’s working, what’s not, and which opportunities offer the highest risk-adjusted return . This helps our clients prioritize these pricing opportunities within a broader value creation program.

From Baseline to Action: The Pricing Diagnostic Approach

Grant Thornton Stax Pricing Diagnostic is structured around three core pillars , each critical to understanding the size and scope of the pricing opportunity:

1. Baseline Pricing Analytics

We start by establishing a fact base around current performance, analyzing:

Sales trends by key attributes (e.g., customer segment, channel)
List-to-net waterfall to uncover sources of price leakage
Margin and discount variability across like-for-like cohorts

This initial effort often reveals unexpected, meaningful opportunities for price optimization.

2. Hypothesis-Driven Deep Dives

With the baseline established, we align with management on a couple of high potential areas worth exploring. For example:

Impact of promotions and rebates on purchase behavior and customer lifetime value
Efficacy of existing discount programs on driving incremental volume
Alignment of existing customer segmentation to willingness-to-pay

These deep dives allow us to stress test key hypotheses to quickly determine if it’s worth investing more organizational time and energy.

3. Opportunity Sizing and Prioritization

Finally, we translate findings into an actional set of opportunities by quantifying their financial impact and recommending an implementation sequence, from immediate "quick wins" to longer-term structural changes. Example opportunities include:

Recommendation to revise price points and tiers for a subset of high potential product and customer combinations
Revised discounting framework that maximizes net price and increases win rates
Segment-specific pricing strategies that leverage the company’s value proposition to differentiate from competitors

Our opportunity matrix provides a clear, data-backed view of how pricing can contribute to growth and profitability, helping PE sponsors and management teams align on next steps.

What Comes Next: From Diagnostic to Execution

While the 2–3-week diagnostic is self-contained, it also serves as a critical input to a potentially broader pricing transformation effort.

Based on our findings, Stax often helps clients move into a second phase focused on pricing strategy and optimization . This may include primary customer research to assess purchase drivers and price elasticity or the development of new pricing architecture and bundles.

In many cases, we also partner with clients to implement changes , test in-market pilots, and build enduring pricing capabilities within the organization.

The Grant Thornton Stax Advantage

Whether you're looking to validate a thesis pre-close or accelerate growth post-close, pricing deserves your attention. We’d be happy to walk you through the approach, share examples, and explore how pricing can unlock value in your portfolio. To learn more, reach out to Alex directly by clicking here .

Accelerating FSM Adoption in the UK and Emerging PE Opportunities

Wed, 11 Jun 2025 15:07:56 GMT

Palash Misra

Partner

Andrew Keller

Managing Director

Field Service Management (FSM) software enables businesses to coordinate field operations using tools for scheduling, dispatch, and task tracking in lieu of whiteboards, spreadsheets, and ad hoc communications—offering a structured system that increases visibility, reduces delays, and standardized workflows. For firms that adopt them, the impact is tangible: fewer missed appointments, faster invoicing, better workforce utilization, and more consistent customer experience. Over time, these systems have evolved their capabilities to enable mobile payments, digital compliance reporting, and data-driven decision-making.

Private equity investment interest in the UK FSM software landscape has intensified over the past two years, creating momentum in a historically fragmented market. In 2024, Simpro Group—backed by KKR—acquired BigChange, a Leeds-based mobile workforce platform, to deepen its UK footprint. Joblogic, headquartered in Birmingham, acquired Protean Software and Clik Limited in 2023, strengthening its position as a consolidator. Around the same time, Kerridge Commercial Systems added Klipboard to its offering, while Kester Capital backed Re-flow in early 2025.

Key FSM Software Market Growth Drivers

1. Increasing FSM software adoption

FSM software adoption in the UK continues to trail the US, with only 25-30% of addressable users estimated to be utilizing purpose-built platforms, compared to 35-40% in the US (Stax, 2024). Adoption has been particularly slow among small and mid-sized firms, where many operators continue to rely on spreadsheets and manual coordination—not just due to operational traditions but also limited budgets and competing priorities. However, the UK is beginning to show early signs of the same professionalization and digitization trends that have driven adoption in the US.

Palash Misra

Partner

Andrew Keller

Managing Director

Palash Misra

Managing Director

Andrew Keller

Director

FSM is no longer seen as nice-to-have—it’s becoming core to operations. Platforms are evolving to be more modular and extend into adjacent capabilities (i.e., analytics, compliance reporting, and technician communication) and as adoption drivers intensify, the UK market is well positioned for growth.

For investors, this presents an opportunity to support platforms that are becoming more central to field service operations—yet remain early in their penetration.

For software vendors, this represents a significant runway of untapped opportunity. In the US, rapid FSM adoption has been propelled by PE roll-ups in HVAC and adjacent trades, where consolidators standardize tools and professionalize operations across acquisitions. That dynamic has been less prevalent in the UK where fewer roll-ups have occurred, leaving more businesses greenfield and making the market especially ripe for consolidation and digitization.

For investors, this presents an opportunity to support platforms that are becoming more central to field service operations—yet remain early in their penetration.

2. Mobile Enablement

Smartphones and tablets are now standard in the field. Through FSM apps, technicians receive job updates, complete reports, and capture signatures—all while remaining on-site. Companies using mobile FSM tools report faster job completion and improved customer satisfaction ( Market Research Future, 2023 ).

“The most important thing is mobility and being nimble. A solution needs to go on an iPad or any mobile platform and say, ‘service is done'.” – Office manager, FSM operator

3. Rising Compliance Demands

In sectors like construction and compliance-driven services (fire and life safety or water hygiene) audit trails and documentation are no longer optional. FSM platforms that digitize inspection forms and audit trails help firms stay contract-ready without increasing overhead.

Under the UK’s Building Safety Act 2022, firms managing high-risk buildings must provide digital audit trails and real-time compliance documentation. As these standards tighten, digital compliance features are shifting from optional to essential.

4. AI Opportunities

The emergence of AI in FSM remains incremental rather than disruptive—particularly because this segment ultimately depends on physical service delivery. Most real-world applications focus on enhancing workflows rather than replacing them.

Leading platforms are embedding AI to enhance existing workflows (i.e., scheduling, job triage, and dispatch and improving customer responsiveness and support) and the most successful of those platforms will be those that use AI to reduce friction, improve utilization, and elevate the role of technicians.

That said, expectations should remain grounded. As one business development lead put it:

“Everyone talks about AI, but when it comes down to it, you still need someone to physically go to the property. AI can help triage, but it’s not replacing visits any time soon.” – Business Development Director, FSM Software Vendor

5. Internet of Things (IoT)-enabled Asset Monitoring

IoT integration is beginning to reshape how field service businesses think about preventative maintenance and service delivery. Sensors embedded in equipment and infrastructure—typically by IoT providers—generate real-time condition data. FSM platforms, in turn, integrate with these systems via APIs or middleware to receive alerts, create service tickets automatically, and schedule maintenance without manual input.

Adoption is still limited, but early users have reported improvements in consistency and cost control ( IDC, 2024 ). Over time, as IoT becomes more accessible and embedded in vertical workflows, it is expected to drive a shift from reactive to predictive service models—changing both customer expectations and platform requirements.

Growth & Expansion

UK FSM vendors face multiple paths to growth—vertical expansion within the UK, geographic growth into Europe, or entry into the US. Vertical expansion across similar professional trades that share similar characteristics (e.g., from HVAC to plumbing) often requires minimal product change. Geographic expansion into Europe or the US is attractive but requires local sales investment and significant go-to-market resources to succeed in either.

Tied closely to geographic expansion is the need to align with regional payment preferences which provides a meaningful stream for FSM platforms. In the US, FSM vendors frequently monetize payments through credit cards and ACH fees. In contrast, the UK and broader Europe lean more heavily on bank-to-bank (A2A) transfers and digital wallets. Understanding these regional payment infrastructures—and embedding them effectively into platform workflows—will be critical to capturing the full value of embedded payments as FSM platforms scale internationally.

Conclusion

The UK FSM software market presents a compelling high-growth opportunity, but investors should prioritize platforms not only gaining share today but are also positioned to lead the next phase of market development—characterized by consolidation, workflow integration, and deeper use of automation, analytics, and compliance capabilities.

Simpro, Joblogic, Totalmobile, and Re-flow each demonstrate elements of this evolution, whether through international expansion, product modularity, regulatory readiness and depth, increasing penetration of embedded payments, or consolidation. Platforms that can scale across borders while supporting local compliance and service delivery models will be well placed to define the next generation of FSM software.

Grant Thornton Stax brings deep experience across FSM and field operations software. Visit www.stax.com or click here to learn how we help investors identify scalable and high-performing assets .

Six Key Takeaways from the Grant Thornton | Stax Consumer Survey

Tue, 10 Jun 2025 13:57:50 GMT

Grant Thornton Stax Consumer group recently conducted a survey to better understand consumer sentiment and near-term spending expectations; capturing a representative sample of 1,626 respondents from across the United States, each responding on behalf of their household. The survey was fielded from April 22 to May 3, 2025. To ensure the results accurately reflect the broader US population, the sample was weighted to account for key demographic factors, including age, income, and gender, based on recent national census data. This approach ensures the findings are representative of the US population.

Highlighted below are a series of key takeaways identified as a resulted of the survey:

1. Pet Products & Services and Travel & Vacation spending are expected to fare best across most demographic segments, with respondents indicating increased income and lifestyle changes (especially among Gen Z and Millennials) being top factors underscoring their ability to do so.

2. Bars & Alcohol and Luxury Goods are projected to see the greatest net declines in consumer spending across most respondent segments. The former reflects a broader shift toward reduced alcohol consumption, particularly among younger, health-conscious demographics. The latter is likely a consequence of sustained inflation and economic pessimism, limiting consumer willingness to splurge on large purchases.

3. The middle class reports the largest net increase in spending , driven by expectations of higher future earnings and lifestyle changes. Still, in the near-term, ~70% are delaying purchases across certain categories to some extent given expectations for the U.S. economy; conversely, ~50% are making early purchases across at least one category, aiming to stay ahead of anticipated inflation (e.g., due to tariffs).

4. Gen Z and Millennials are the most likely to increase spending in the next year , especially on travel and food. This is driven by income growth and lifestyle shifts. While ~50% are making early purchases (mainly electronics and vehicles) to stay ahead of rising prices, ~60% are delaying spend across at least one category due to inflation, recession fears, and rising debt. Notably, ~44% report being unaffected or unsure about the impact of market volatility, suggesting mixed sensitivity to broader economic conditions.

5. Gen X and Baby Boomers are expected to reduce spending across most categories , except pet products, driven by inflation and economic uncertainty. While ~30% are making early purchases to avoid price hikes or supply issues, ~50% are delaying spend, with 40% citing market volatility. Still, ~40% say market conditions don’t affect their decisions, and ~20-25% are waiting for more stability before making large purchases.

6. Economic pessimism spans demographic segments, but is most pronounced among Asians, Democrats, and females . Inflation and trade tensions are key concerns. Pessimistic segments are also more likely to cut back on spending across categories relative to neutral/optimistic consumers.

3. The middle class reports the largest net increase in expected spending, driven by expectations of higher future earnings and lifestyle changes. Still, in the near-term, ~70% are delaying purchases across certain categories to some extent given expectations for the U.S. economy; conversely, ~50% are making early purchases across at least one category, aiming to stay ahead of anticipated inflation (e.g., due to tariffs).

4. Gen Z and Millennials are the most likely to increase spending in the next year, especially on travel and food. This is driven by income growth and lifestyle shifts. While ~50% are making early purchases (mainly electronics and vehicles) to stay ahead of rising prices, ~60% are delaying spend across at least one category due to inflation, recession fears, and rising debt. Notably, ~44% report being unaffected or unsure about the impact of stock market volatility, suggesting mixed sensitivity to broader economic conditions.

5. Gen X and Baby Boomers are expected to reduce spending across most categories, except pet products, driven by inflation and economic uncertainty. While ~30% are making early purchases to avoid price hikes or supply issues, ~50% are delaying spend, with 40% citing market volatility. Still, ~40% say stock market conditions don’t affect their spending decisions, and ~20-25% are waiting for more stability before making large purchases.

6. Economic pessimism spans demographic segments, but is most pronounced among Asians, Democrats, and females. Inflation and trade tensions are key concerns. Pessimistic segments are also more likely to cut back on spending across categories relative to neutral/optimistic consumers.

Analysis Methodology

The Change Index was calculated by asking respondents to indicate their expected one-year change in spending across various categories, selecting from No Change, Increase, Significant Increase, Decrease, Significant Decrease, or No Spend in the Category, with responses indicating No Spend in the Category excluded from the calculation entirely. Though not a quantified data collection method, this approach for data collection reduces noise from self-reported consumer data (i.e., consumers struggle to accurately pinpoint spend changes on a percentage or absolute basis).

Each response was then assigned a corresponding numerical weight, where Significant Decrease was -100, Decrease was -50, No Change was 0, Increase was +50, and Significant Increase was +100, resulting in an overall index score that reflects the net directional expectation for each category, with a score of 0 indicating no expected change and the magnitude representing the strength of the sentiment.

Change index values should not be interpreted as percentages (e.g., a 2.0 increase does not represent a 2% rise). Instead, they indicate relative movement across discretionary spend categories. For example, a change index of 4.0 reflects twice the increase of a category with a 2.0 index.

Conclusion

Grant Thornton Stax conducts a diverse range of consumer and retail engagements each year for private equity and sponsor-backed businesses. Our breadth and depth of experience across sub-sectors helps foster a strong partnership with our clients, who seek strategic insights and recommendations to help maximize growth potential in the near and long term. Visit  www.stax.com  or  click here to contact us directly.

Samantha Pinkes

Director

Marko Begonja

Manager

Stax Sector Spotlight: Travel & Hospitality Software

Mon, 09 Jun 2025 18:18:03 GMT

Andrew Keller

Managing Director

Travel & Hospitality Tech: Growth Opportunities Amid Legacy System Replacement and STR Expansion

Property Management Systems (PMS) are a key component of hotel technology and have high adoption levels across hotels globally. However, there is a large installed base of under-invested legacy providers (e.g., Oracle’s OPERA product) that are being replaced, creating opportunities for newer, cloud-native providers (e.g., Mews).

In parallel, less adopted areas of the hotel tech stack are also experiencing growth. This expansion is more often driven by white or grey space adoption rather than competitive displacement. Notably, segments such as revenue management, hotel competitive intelligence, and guest experience or operations-focused solutions are seeing increased traction as hotels seek to modernize and differentiate through technology.

Andrew Keller

Managing Director

The US and European hotel markets are sizable but differ significantly in structure. Large hotel chains predominate the US market, while in Europe the market is extremely fragmented, with independents and small national chains making up the majority. This structural difference necessitates distinct go-to-market approaches. In the US, major brands may mandate or strongly recommend specific solutions, effectively creating an enterprise-style sales environment. In contrast, sales in Europe tend to be more "bottom up," targeting independents and smaller chains.

An adjacent segment within hospitality technology is PMS for short-term rental (STR) properties and holiday lets. These platforms allow professional STR property managers to manage inventory across multiple booking channels (e.g., Airbnb, Expedia, Booking.com) and oversee key operational tasks such as check-in/out and property cleaning. The STR tech sector has experienced substantial growth, driven by the rise of Airbnb and the increasing presence of STR inventory on online travel agencies (OTAs).

Drivers and constraints in Hospitality Tech: Travel Rebound, Cloud Migration, and Regulatory Headwinds

Travel demand:

As of mid-2025, many regions are experiencing a robust recovery in travel demand following the pandemic. Hotels in the US and Europe experienced record levels of leisure travel in 2022–2023, alongside a rebound in business travel. This renewed top-line growth has given hoteliers the confidence and the cash flow to reinvest in technological upgrades that may have been previously deferred.

Cloud migration:

The hospitality sector is rapidly accelerating away from legacy, on-premise systems in favor of cloud-native PMS and CRS platforms. While Oracle continues its efforts to migrate its large OPERA install base to Opera Cloud, modern rivals such as Mews and Cloudbeds are gaining ground, particularly among independent properties and smaller chains.

Guest experience and operations:

There is continued growth in technologies that enhance guest experience and streamline hotel operations. These solutions address critical pain points around labor availability and evolving guest expectations. There is significant opportunity for growth, particularly among mid-market operators who are only now adopting technologies such as mobile check-in and staff workflow management apps.

STR regulation:

In many cities across the US and Europe, local governments have introduced stricter regulations for short-term rentals. Measures include limitations on the number of rental nights, licensing requirements, and, in some cases, outright bans in certain areas. While these regulations can constrain the growth of the STR market by reducing the number of listings or requiring more professionalization, they also drive increased adoption of technology to ensure compliance.

PE Doubles Down on Hospitality Tech Amid SaaS Growth and Consolidation Trends

Deal activity in the hospitality tech space has been robust across different segments. Growth equity investors continue to back high-performing assets, KKR’s investment in Lighthouse and General Atlantic’s in Hostaway are recent examples, often at unicorn valuations to support continued expansion.

Large-scale carve-outs are also gaining momentum, with TPG’s acquisition of Sabre’s hotel tech division illustrating the strategy of unlocking value in standalone assets.

In parallel, PE-backed platforms are actively pursuing strategic acquisitions, as seen with Mews expanding its portfolio through newly secured funding.

Overall, private equity interest is high, driven by the sector’s attractive fundamentals: recurring revenue SaaS models, accelerating digital adoption across hotels and STRs, and significant opportunities for consolidation.

What's Ahead in H2: High-Growth Segments Driving Hospitality Tech Investment

Investor momentum is expected to carry through the second half of the year, with continued focus across high-potential sectors. Cloud-native PMS platforms, guest experience and operations-focused solutions, and short-term rental technologies are likely to remain particularly attractive. These areas not only demonstrate strong growth fundamentals but also align with broader industry trends around digitization, operational efficiency, and greater automation, making them prime targets for ongoing investment.

Representative Recent Travel & Hospitality Experience

All Smiles: Stax Perspective on the Growing Demand for Dentistry and Dental Service Organizations (DSOs)

Fri, 06 Jun 2025 14:59:11 GMT

Rob L arson

Managing Director

Annie Su llivan

Director

The dental market continues to grow steadily, driven by strong demand tailwinds and a fragmented landscape, which includes Dental Service Organizations (DSOs) who are particularly well positioned to navigate labor pressures and capitalize on consolidation opportunities. Stax has gathered data highlighting several ongoing trends supporting continued attractiveness in the DSO space.

Trends in the Dental Market

Aging Population & Elderly Care

Demand for dental services has steadily increased over time, in part driven by the aging population; the 65+ population has higher rates of utilization and was quicker to recover post-Covid. Further, according to Stax data, dental visits continue to increase for most patients as they age before reaching a peak at ~65-70 years old. The growing population in this segment is expected to support industry growth, as the aging population requires a wider range of dental services (i.e., cosmetics including dentures, higher level of care, more frequent visits, etc.).

R ob Larson

Managing Director

Annie Sullivan

Director

Cosmetics

The rising focus of oral aesthetics, social media, and need for dental care post-Covid is projected to further drive demand for dentistry. Specifically, the role of social media and remote working (“on-camera”) environments has augmented the demand for oral care, particularly cosmetic dentistry, as the focus for aesthetics continues to be more top-of-mind for individuals.

Across generational groups, almost 50% of individuals have stated that social media has negatively affected confidence in their smile, prompting consideration for cosmetic dentistry procedures.

A rise in dental diseases post-Covid have been observed as many patients skipped dental visits during the pandemic, leading t o untreated issues that worsened over time. The CDC reports that over 25% of adults aged 20–64 have untreated cavities, causing the greater need for dental care today.

Dental Insurance and Medicaid

Overall dental coverage has increased in the US, with ~88% of Americans having some form of dental insurance (~2% growth p.a. over the last 5 years). This increase was primarily driven by expanded Medicaid enrollment in 2022 and the rapid growth in Medicare Advantage plans with mandatory dental benefits. However, coverage has slightly declined as Medicaid redeterminations resumed in 2023.

While the current administration may reduce Medicaid coverage (which remains highly uncertain), the diversified payor mix, and continued Medicare Advantage growth will help buffer broader cuts in public coverage.

Recession Resilience

Dental expenditures in the US show stable growth across all funding sources and remain resilient during economic downturns, highlighting consistent demand for dental services.

In recent economic recessions, demand for dental services has remained robust, with limited to no reductions in expenditures; decreased expenditures during Covid were linked largely to limitations on dental visits and are unlikely to be replicated in future downturns.

Dentist Staff & Supply

The number of dentists has slightly increased over the past decade (~1% YoY growth), and while dentists are predicted to face less severe supply shortages than other medical specialties, (93% supply adequacy vs. 82% for OBYN, 73% for family medicine and 47% for psychiatrists for example), supply pressures remain a key challenge.

Despite supply challenges, DSOs are better positioned to attract and retain talent due to their ability to offer competitive compensation, structured training and relief from growing administrative responsibilities – with more sophisticated talent/HR departments and resources, DSOs can more effectively combat labor challenges.

While there have also been increasing shortages of hygienists and assistants, DSOs similarly have more resources and scale advantages to recruit and retain staff (e.g., stronger branding, career development pathways).

Competitive Landscape

The dental market remains largely fragmented with only ~22% of dentists affiliated with a DSO. While general dentistry dominates the provider base, DSOs span a wide range of dental specialties and there is an increasing opportunity to expand into specialty segments across the dental ecosystem. Among the top ten DSOs, only a few have national reach, while most remain regionally concentrated, creating meaningful runway for consolidation.

DSO deal activity has been healthy over the last ~2 years and the large volume of assets that transacted 4-5 years ago indicates likely continued activity going forward.

Conclusion

Grant Thornton Stax has helped a variety of clients across the dental ecosystem through various stages of the deal lifecycle. Our Healthcare vertical has worked for 30+ years to deliver PE investors actionable insights to help drive value creation and create growth opportunities that lead to successful exits. To learn more about our Healthcare expertise, visit our Insights page or click here to contact us directly .

Key Investment Considerations for the Traffic Safety Products Market

Fri, 06 Jun 2025 14:25:05 GMT

The following content was originally created by Grant Thornton Stax and was featured in Raymond James Security & Safety Insight: Spring Edition 2025.

Infrastructure Investment Fuels Sponsor Interest in Traffic Safety Sector

Infrastructure spending trends have ignited a wave of sponsor interest in the traffic safety sector, along with questions about optimal entry points and investment opportunities. Stax has deep expertise in the traffic safety sector, supporting sponsors and portfolio companies throughout their investment journey. Industry experts Sameer Tejani and Joel Slater provide their analysis of the overall market dynamics, growth tailwinds, regulatory impacts, and competitive positioning, providing key takeaways for investors looking to capitalize.

Key Investment Themes in Traffic Safety

Highly fragmented market for traffic safety products and intelligent systems, presenting substantial runway for platform development.

Strong industry growth profile , driven by increased government funding - the bulk of which has yet to get translate into provider revenues and adoption whitespace.

Broad stakeholder ecosystem enabling multiple expansion levers (end markets, product categories, regions, etc.) and differentiation ability.

Fragmented Market for Traffic Safety Products & Intelligent Systems

Managing Director

Infrastructure Investment Fuels Sponsor Interest in Traffic Safety Sector

Infrastructure spending trends have ignited a wave of sponsor interest in the traffic safety sector, along with questions about optimal entry points and investment opportunities. Stax has deep expertise in the traffic safety sector, supporting sponsors and portfolio companies throughout their investment journey. Industry experts Sameer Tejani and Joel Slater provide their analysis of the overall market dynamics, growth tailwinds, regulatory impacts, and competitive positioning, providing key takeaways for investors looking to capitalize.

Key Investment Themes in Traffic Safety

Highly fragmented market for traffic safety products and intelligent systems, presenting substantial runway for platform development.

Strong industry growth profile , driven by increased government funding - the bulk of which has yet to get translate into provider revenues and adoption whitespace.

Broad stakeholder ecosystem enabling multiple expansion levers (end markets, product categories, regions, etc.) and differentiation ability.

Meet the authors

Director

Fragmented Market for Traffic Safety Products & Intelligent Systems

Stax provides an integrated perspective on the full spectrum of traffic safety products and intelligent systems (ITS) organized by key application areas. Most vendors specialize in narrow slices of the market, creating a fragmented ecosystem ripe for consolidation.

Intelligent Traffic Safety (ITS) Systems

ITS solutions typically integrate hardware, software, and data analytics to optimize roadway safety. Innovation continues to fuel this category, as providers respond to evolving public safety demands.

Common ITS applications include:

Traffic Safety Enhancements – Builds on existing detection and monitoring equipment to enable response in enhancing safety.
Advanced Central Traffic Systems – Allows traffic management centers to monitor, control, and optimize traffic flow at roadways and intersections.
Traffic Detection Systems – Detects and processes vehicular and pedestrian movement for improved traffic management.
Parking and Tolling Solutions – Helps reduce congestion and conflicts along the roadways and within parking areas.
Dynamic Signage and Alerts – Delivers real-time messaging to alert roadway users about road conditions, traffic flow, and potential.
Smart Road Infrastructure – Supports remote monitoring and management of road networks for enhanced efficiency and maintenance.

Strong Growth Profile Backed by Government Funding

The broader market continues to experience steady growth, driven by ongoing investment in traffic safety infrastructure, diverse funding sources, and significant whitespace for further adoption of solutions. At a base level, most categories are expected to grow ~3%-5% CAGR but can range into 10%-15%+ CAGR range depending on the degree of proprietary or tech components, innovation, and underlying funding tailwinds.

Key Market Tailwinds

Increasing urban traffic and rural development strain existing infrastructure.
Environmental risks and natural disasters are increasing safety challenges.
Tech innovation—like video-based incident detection—is driving adoption of ITS.
Delayed disbursement of federal funding means additional runway ahead.

Rising infrastructure demands stem from increased road usage, influenced by urban migration and increasing traffic in rural areas, creating a greater need for underlying traffic infrastructure development. Additionally, environmental factors such as natural disasters and resource management/availability have led to incrementally more safety hazards and further resource constraints downstream.

The rapid pace of technological advancements has accelerated ITS adoption, allowing agencies to optimize traffic flow and enhance safety by leveraging interconnected data sources. Advancements, such as enhanced video imaging for detecting near-miss accidents, continue to expand new applications and use cases. Continuous innovation is extending the adoption runway, as the implementation of ITS systems and traffic safety products varies substantially by agency. Even within a single agency, substantial opportunities remain for continued penetration at an intersection / road level.

Furthermore, rising regulations and funding have helped bolster this growth, a topic explored further in the following section.

Lastly, US roadway quality lags behind other developed nations, with 43% of roads classified as mediocre or poor, underscoring the urgent need for investment to improve quality and competitiveness. For bridges specifically, there are over 40,000 deemed “structurally deficient” and another 180,000 in need of repairs, highlighting the demand and opportunity for investment in bridge rehabilitation and maintenance .

Government’s Role in Sector Growth

The Infrastructure Investment and Jobs Act (IIJA) marked a turning point, increasing federal funding for traffic safety initiatives. However, delays in allocation create pent-up demand, as funding takes 18 months to five years to reach vendors.

IIJA adds to existing state and local grant programs.
Local agencies continue to drive adoption and upgrades.

Growth Dynamics

While the growth dynamics vary by product category and applications, these tailwinds provide continued runway and demand for operators in this market. Some categories/applications also have substantial whitespace for adoption/penetration of the solutions at a local level.

Stakeholders & Differentiation Drivers in a Crowded Ecosystem

Value Chain Complexity

The value chain for traffic safety products and intelligent solutions includes many stakeholders with varying levels of involvement in the decision process, depending on the category:

State and local agencies typically run the procurement process, consulting with engineers, industry experts, and end users—such as law enforcement, fire departments, transit authorities—for guidance and recommendations.
Contractors play a pivotal role in purchasing decisions on behalf of these agencies and are ultimately responsible for implementing the broader traffic safety solution. They may also subcontract specialized work to other services providers in electrical, roadway, and traffic control sectors.
OEMs often rely on distributors to extend their coverage of the market and help build / maintain local relationships. While many distributors operate exclusively with a single basis OEM, they maintain a diverse "line card" to provide the full suite of traffic safety solutions.

The RFP Decision Process

While smaller purchases or replacements of existing equipment are typically sourced directly from distributors, new adoption or significant upgrades / large purchases typically involve a multi-party RFP process. Agencies initiate this process start by developing the scope of work based on engineering / consultant specifications, then issue a broad RFP process inviting bids from 3-10+ providers. Ultimately, the provider that best addresses the full range of needs and has the history/reputation of delivering effective solutions is selected, though "like-for-like" price is also a key consideration in the decision process.

Large-scale purchases often require a formal RFP process, emphasizing:

Solution fit and proven impact
Breadth of offering
Competitive pricin g

Differentiation Drivers

Given a fragmented landscape, competitive offerings vary materially by category and region, placing an impetus on their ability to differentiate in the market. For local level contracts, providers focus on getting their solutions "spec-ed in" to create pull-through demand to the extent feasible. At the same time, local agencies also value working with one OEM to fulfill unique needs, ensure integration and maintain local relationships.

For larger contracts, providers typically differentiate themselves through the depth of their offering, while still seeking partnerships to broaden their range of use cases. These companies also continually scan the market for innovative acquisitions and footprint expansion opportunities. There remains a long tail on such innovative solutions providers (including hardware product companies, software applications, and data/analytics-focused vendors) – most yet to achieve the scale or reputation required for meaningful consideration in the RFP process.

Conclusion: Investment Opportunity in Traffic Safety

The traffic safety products and intelligent systems market has long been highly fragmented, inviting platform builders to acquire and scale local providers. Additionally, the market offers a wide range of logical adjacencies, creating significant optionality for platforms. To maximize investment potential in this space, Stax also recommends the following characteristics—complementing the core diligence areas of market dynamics and asset positioning:

Ability to offer a "one-stop-shop" offering either through own products or partnerships
Synchronization of existing and future/adjacent product categories to ensure use case extendibility and decision maker overlaps
Differentiation driven by proprietary products, tech-based offerings, or entrenched local relationships
Recurring or re-occurring revenue potential through parts, software or data offerings built on top of the core products
Differences in multiples arbitrage when combining software, system, and hardware assets

Stax has helped numerous private equity firms assess, enter, and scale within the traffic safety space. Our industry, geographic, and functional expertise enables investors to drive growth, enhance profits, increase value, and make better investment decisions.

Learn more about our private equity consulting services, industry expertise, or explore our latest insights.

Top 5 Investment Themes: Food & Beverage 2025

Wed, 04 Jun 2025 12:44:13 GMT

Market and investment trends are always changing. Leveraging our 30+ years of experience serving private equity clients, Grant Thornton Stax Consumer group has compiled the Top 5 investment themes within the Food & Beverage (F&B) sector that investors should keep on their radar. From insights on preferred ingredients to upstream activity, these insights highlight the strongest tailwinds in a continually evolving and resilient market.

1. Quest for Real Ingredients:

Consumer expectations on 'better-for-you (BFY)' are shifting, with demand growing for 'real' ingredients and less focus on brands that promote functional attributes (e.g., zero sugar, high protein, no additives) but sacrifice on ingredient transparency.

2. Continued Popularity of Functional Beverages:

Within 'better-for-you,' specific momentum towards functional beverages, with new entrants/upstarts further fragmenting the beverages segment. That said, competitive intensity, alignment with fed trends, and challenges to scale pose risks to smaller brands.

3. High Protein:

Protein continues its resurgence (across all formats/meal occasions), with innovation in categories historically not associated with protein (pasta, sauces) and in traditional protein where emphasis is on clean/transparent sourcing.

4. Investing Upstream:

Up/midstream investment in private label/co-manufacturing and ingredient suppliers remains attractive given higher business resiliency during downturns market uncertainty persists.

5. Flavor Exploration Persists:

Growing interest in international cuisines, particularly from South Asia, the Middle East, and East Asia, continues to drive investment tailwinds across the value chain (e.g., specialty distribution, branded products, ethnic retailers) as consumers experiment and expand their culinary preferences.

Interested in pursuing a seat at the table? Contact the Stax Consumer team to learn more about how F&B investments can spice up your portfolio. Click here to contact us directly for more information.

Sameer Tejani

Managing Director

Anantha Natalegawa

Managing Director

A Statistically Driven Solution to Understanding Customer Needs

Mon, 02 Jun 2025 19:08:14 GMT

A Common Problem: Understanding Customer Needs

Investors and management teams often struggle to discern what customers say they want versus what they actually want. Traditional innovation frameworks and customer needs assessments (e.g., Clayton Christensen’s “Jobs to be Done” approach) rely on in-depth market conversations or rudimentary web survey analysis (e.g., ranking criteria on a scale from 1-7) to inform strategic decisions. While these approaches may often be sufficient, there remain many instances when a market’s purchasing dynamics are too complicated or nuanced for customers to clearly express their purchasing rationale.

In these cases, there are meaningful risks, particularly for management teams seeking to refine product/market fit. The most effective way to mitigate such risk is to observe customers’ actions instead of trusting their stated intent (e.g., Eric Reiss’ “Build, Measure, and Learn” approach); though this requires a disciplined commitment to resourcing and iteration.

A Statistically Driven Solution

At Grant Thornton Stax , we employ an alternative analytical approach to solve this issue. Our approach measures customers’ derived needs (as opposed to stated) without requiring lengthy product/market fit testing. The approach is rooted in a MaxDiff analysis, which begins with collecting data using best-worst scale web survey questioning. This questioning format presents respondents with a subset of criteria and asks them to select the most and least important on each screen. The answer options adapt based on respondents’ prior selections, thereby forcing tradeoffs while reducing survey fatigue.

Using this data, we run a statistical analysis to quantify the relative magnitude of purchase criteria importance. The outputs from this analysis are meant to represent the “derived importance” of a customer’s purchasing criteria (i.e., what is truly meaningful versus stated as meaningful).

This analysis can serve multiple purposes. In one case, on behalf of a B2B software client, we used these derived purchasing criteria and firmographic attributes, in combination with a statistical clustering analysis, to create a sophisticated market segmentation—versus segmenting based solely on firmographic attributes, like size or region. Ultimately, this enabled us to move beyond surface-level segmentation and deliver actionable strategic recommendations that changed the company’s product roadmap and commercial motion, in line with core customer needs.

A siri Silva

Head of Data Science

Samantha Pinkes

Director

Marko Begonja

Manager

In a different case, a transportation service provider needed to pinpoint what marketing messaging would have highest resonance with school district customers. By running a similar MaxDiff analysis testing the relative importance of student outcomes, Grant Thornton Stax enabled the client to craft more targeted and effective sales and marketing materials, while also informing product development to strengthen its competitive differentiation.

Conclusion: A False Trade-Off

Sophisticated customer insights can be achieved using a lean customer research approach. Using Grant Thornton Stax's web surveying and statistical techniques, customer needs be can more precisely assessed and implications can be incorporated into actionable sales, marketing, and product strategy. Visit  www.stax.com  or  click here directly to learn how we can help develop strategy using deeper customer insights.

Grant Thornton Stax Recognized as a Top M&A Consulting Firm in the UK 2025 by Consultancy.uk

Mon, 02 Jun 2025 15:04:13 GMT

We’re proud to share that Grant Thornton Stax has been named one of the Top Mergers & Acquisitions Consulting Firms in the UK 2025 by Consultancy.uk . This recognition reflects the strength and momentum of our UK team, whose incredible work continues to drive impact across the private equity and M&A space. Congratulations to the entire team on this well-earned distinction.

Consultancy.uk’s annual ranking highlights top-performing firms across the UK consulting landscape, using a data-driven methodology that evaluates reputation, sector expertise, client satisfaction, thought leadership, and market impact. The 2025 list is informed by one of the region’s most comprehensive assessments, including feedback from clients and consultants, as well as performance benchmarks across 40 sectors and areas of expertise.

Since opening our Central London office in 2024, Stax has accelerated its growth across the UK and Europe , particularly in the private equity mid-market, and is on pace to double its UK headcount by the end of 2025. We remain committed to supporting our clients with actionable insights across every stage of the private equity investment lifecycle.

Thank you to our clients, colleagues, and the Consultancy.uk team for this meaningful recognition.

About Consultancy.uk

Consultancy.uk is an online platform for U.K.'s consulting industry. The site presents the latest news and trends in the sector, follows the developments and publications of consulting firms across 60+ industries / functional areas and provides career opportunities for professionals interested in working in consultancy.

Getting Our Hands Dirty: Stax Teams Give Back to Local Parks Across Four Cities

Sun, 01 Jun 2025 19:45:49 GMT

This spring, the Stax Community ERG led a series of hands-on volunteer efforts across our offices in Boston, Chicago, New York, and London, partnering with local parks to help these vital green spaces thrive. Our colleagues rolled up their sleeves and got their hands dirty: picking up trash, removing invasive species, and planting native flora. In New York alone, our team cleared 26 bags of weeds and invasive plants and planted 276 little bluestem grasses, a native species that supports biodiversity and soil health. Beyond the impact on the parks themselves, the days were filled with fresh air, laughter, and camaraderie; proof that giving back can be both meaningful and energizing.

These community events reminded us how important it is to step outside the office and contribute to the neighborhoods we live and work in. Whether it's through local clean-up days or long-term partnerships, supporting the organizations that care for our shared spaces is a powerful way to make a difference. If you or your firm are looking for ways to engage, we encourage you to explore volunteer opportunities with local park conservancies and community groups, small efforts can lead to big impacts.

Here are some postcards from our spring clean-ups and links to the respective organizations:

Increasing PE Interest Upstream: Stax Oil & Gas Software Market Update

Tue, 27 May 2025 16:17:18 GMT

Palash Misra

Partner

Palash Misra

Partner

The oil & gas (O&G) industry once again faces the familiar challenge of navigating deflationary pricing. Global demand growth is losing momentum, driven by macroeconomic headwinds and tariff uncertainties weigh on global oil demand. While regulatory shifts—such as rolling back environmental rules, expanding access to federal drilling land, and slowing the advancement of renewable energy—were intended to stimulate upstream activity, these measures have not counteracted the downward pressure on oil prices.

According to the US Energy Information Administration‘s (EIA), West Texas Intermediate (WTI) crude oil prices are projected to decline from $70 per barrel in 2025, to as low as $60 in 2026 due to global oversupply and slowing demand growth.

Operators are also growing increasingly cautious. Economic uncertainty and the potential cost burden of tariffs are affecting companies' investment decisions. Oil producers are scaling back new drilling projects and prioritizing cost reductions over new investment. In this environment, many operators are turning to software investments that automate workflows and streamline headcount.

Continued Digital Transformation to Drive Operational Efficiency

Digitization and intelligent automation of operator workflows are accelerating, driven by a set of structural forces that are reshaping the oil and gas industry :

Workforce transitions: The graying of the workforce is leading to the retirement of experienced operators and engineers, increasing the risk of lost institutional knowledge. At the same time, newer hires are increasingly tech-savvy and expect their workplaces to provide modern, intuitive digital tools.
Labor shortages are pressuring operations: A shrinking labor pool has made it more difficult to hire and retain field service personnel. In response, operators are increasingly adopting workflow automation and remote monitoring solutions to improve asset visibility and enhance the efficiency of limited field resources.
Evolving demand for integration: Operators now require scalable, interoperable software platforms that can enhance decision-making, optimize resource utilization, and ensure compliance with growing regulatory requirements.

As in prior periods of price deflation, the cyclical nature of oil and gas has tightened capital budgets, limiting some IT investments. However, digital transformation has not paused. Software solutions with demonstrable ROI—particularly those that support automation, real-time monitoring, and advanced analytics—are gaining traction as operators seek to improve uptime and lower cost-per-barrel.

A key trend to watch is whether oil prices remain above ~$65, a breakeven threshold for many producers. A sustained drop below that level may prompt renewed budget tightening and force operators to defer or abandon non-essential digital initiatives.

Strong Activity Upstream: Notable Momentum in Digital Oilfield Transformation

Upstream O&G operators are increasingly pursuing end-to-end digital platforms to streamline production and operational workflows. Mounting cost pressures are consequently driving a shift toward vendor consolidation as buyers seek integrated solutions that reduce complexity and total cost of ownership. Due to this, Stax anticipates continued consolidation among software providers aiming to expand their end-to-end capabilities. We are also seeing growing interest in Asset Integrity & Performance Management and Mobility solutions .

Asset integrity and performance management software is gaining investor attention driven by aging infrastructure and the growing demand for predictive maintenance. This market remains underpenetrated, with many operators still relying on spreadsheets and manual processes—highlighting significant whitespace for scalable, cloud-based adoption.

As larger O&G operators expand their portfolio and evolve into broader energy companies, asset management software that supports renewable assets are becoming more critical. Platforms capable of managing the operational complexity of wind, solar, and carbon capture assets—alongside hydrocarbon assets—are well positioned to benefit from the energy transition underway at these larger companies.

Operators are increasingly focused on unifying surveillance, maintenance, and operations—bridging field-level execution with corporate decision-making to enable more agile responses to operational risk and production variability.

At the same time, mobility solutions are no longer limited to basic field data capture. They’ve become essential platforms for incident tracking, asset condition monitoring, and compliance management.

Concurrently, vendors are increasingly converging workflows such as maintenance scheduling, asset integrity, and mobile workforce management to deliver unified solutions. These cross-sector capabilities are opening new opportunities for software providers to serve a broader slice of the energy value chain.

Market Outlook:

Despite commodity price pressures, digital transformation in O&G remains a strategic priority. Structural labor shortages, rising asset complexity, and cost-reduction pressures are accelerating adoption of integrated software platforms that drive efficiency and enhance decision-making.

Operators are prioritizing solutions that offer clear, measurable ROI, while vendors with end-to-end capabilities are especially well positioned. Digital transformation is not pausing—it’s evolving. The next wave of winners in the energy software space will be those that help operators unlock ROI today while also enabling the transition to integrated, lower-carbon operations tomorrow.

About Grant Thornton Stax

When it comes to understanding the viability of a market for investment, Grant Thornton Stax is where value is created. Our approach, centered around providing data-driven and actionable insights, enables clients to make informed decisions that lead to providing the most competitive returns. Grant Thornton Stax team brings deep experience across the energy sector, with a strong track record in energy services, utilities, oil & gas, and energy technology and data providers—including platforms like Quorum , P2 (now part of IFS), among others. To learn more about Grant Thornton Stax and our services, visit www.stax.com or click here to contact us .

Featured by The Business Journals: Middle market M&A was expected to have a big 2025. Then a wild card entered the mix.

Tue, 27 May 2025 15:44:53 GMT

Robert Lytle

Senior Managing Director

This article was originally featured by The Business Journals and was written by Andy Medici.

Dealmakers had big expectations for middle-market mergers and acquisitions in 2025. Although deal activity this year started off strong, the Trump administration’s tariff roller coaster has more recently cooled the market.

"It just effectively dropped an atomic bomb on the deal market. It created a paralysis, as people did not know how to react," said Christopher Fagan, middle market M&A expert and partner at accounting and advisory Moore Colson, about the tariffs. "There's an expectation gap between where we thought we would be and where we are in terms of deal volume."

The industry was already bracing for tariffs, as trade policy and tariffs specifically were defining features of President Donald Trump’s presidential campaign, but the expectation was that they would be isolated to China, Fagan said. Instead, the Trump administration in April imposed a near global 10% tariff in April as well as significantly higher tariffs on goods from China before this month agreeing to a 90-day pause on that policy.

Another set of sweeping, so-called retaliatory tariffs that were set to go into effect earlier in April were also delayed for 90 days after financial markets saw massive drops . So far, the Trump administration says an agreement has been reached with the United Kingdom that includes a partial rollback of tariffs on beef, ethanol and automobiles, with other deal points to be negotiated later.

Rober t Lytle

Partner

While many economy watchers believe tariffs are a transitory issue that will soon be resolved, others see them having longer-lasting ripple effects.

"The reality is, until we remove the cloud of uncertainty around the direction the economy is headed related to tariffs, it's going to create a stagnation on the M&A front because buyers are going to want to process uncertainty into their valuations, which sellers aren't willing to accept," Fagan said. "We're caught in this circular reference of who's going to blink first."

It's not necessarily tariffs themselves causing the most upheaval but, rather, uncertainty around what they might be at any given moment, which makes it impossible to plan for the future.

"You wake up one morning and the tariff is this and, by lunch, it's that," Fagan said. "How do you make long-term decisions for your business when you can't even make a decision in four hours about what the future holds?"

The uncertainty is dragging on what many were hoping to be a year of breakout dealmaking akin to Trump's first presidential term, when low interest rates boosted the ability to close deals.

M&A deals in 2025 have been somewhat underwhelming thus far.

So far this year, there've been 12,682 M&A transactions worldwide, according to the Institute for Mergers, Acquisitions and Alliances, which is projecting 38,000 such deals for the full year. While that would be up from the 36,000 deals done last year, it would be down from the 39,000 completed in 2023 and lower than any year since 2005, with the exception of 2024.

Data from S&P Global shows while overall M&A deal value was up 8% in the first quarter of 2025 from the fourth quarter of 2024, the overall number of deals dropped 19% over the same time. In February, only 3,208 deals were announced, the lowest number of monthly deals in four years.

According to M&A platform Datasite, which facilitates more than 19,000 transactions a year, the number of deals has risen 4% so far in 2025 compared to the same time in 2024 — but the number of deals on hold also increased 9% during the same time. A recent Datasite poll that asked its users what the single biggest blocker to M&A activity is found tariffs to be the biggest deterrent, surpassing heightened regulatory scrutiny and government spending cuts.

"This unpredictability means dealmakers must be vigilant about policy changes that could accelerate, or drag out, deal timelines," said Mark Williams, global chief revenue officer at Datasite, who added M&A will continue, even if it takes longer to close a deal. "Right now, the question isn’t if M&A will happen, it’s when."

Robert Lytle, senior managing director at global business consultancy Stax, agreed tariffs are causing uncertainty and turned what could have been a robust 2025 into something more subdued. But, he said, the middle-market space is less exposed to tariffs than larger multinational companies and the S&P 500.

That includes sectors such as business services, financial, health and legal tech firms, and distributed health-care services, he added.

"There are many quality assets ready to come to market that, at first blush, appear to be simply waiting for political and market clarity," Lytle said.

Max Friar, founder and managing partner of lower-middle market M&A advisory firm Calder Capital, said while the firm had a record first quarter — closing 19 deals — that was driven by clients who didn’t close in 2024 and a larger number of buy-side clients, which are increasingly reaching out to sellers directly without waiting for them to list their business for sale.

Demand has been consistent for home and construction services, such as plumbing and HVAC, along with food manufacturer and distributor businesses. But the restaurant and retail industries are "all but dead" at the moment, Friar added.

"Fears of recession, changes in the labor market and inflation have squeezed already very tight margins, forcing many sellers out of business and buyers on the sidelines," he said.

For Fagan, the boom of artificial intelligence, which requires vast amounts of energy, also means opportunities in electrical generation and distribution. Home services and accounting services can be particularly lucrative because they are sectors where buyers can purchase a large number of such firms.

"The thesis is: I can buy a bunch of them and combine them and get synergies on running them. I can professionalize the management team and turn these into highly profitable businesses," Fagan said. "That's all that people are trying to do."

The rest of 2025 will likely still include a lot of M&A deals but the outlook is clouded by the ongoing, looming threat of changing tariffs, he added.

"There's still a market of buyers for really good businesses, and their valuations are still hanging in there, but you're not going to see a lot of the larger deal activity until this cloud of uncertainty evaporates," Fagan said. "Everything's opaque."

8 Key Questions for Private Equity Investors Eyeing the Maritime Data Industry

Fri, 23 May 2025 13:29:01 GMT

Andrew Keller

Managing Director

The maritime data industry has emerged as a significant opportunity for investors as evidenced from a series of high-profile deals and consolidation moves. Private equity and growth investors have poured capital into maritime data companies , attracted by their subscription-based business models and the increasing importance of data in supply chain resilience.

For example, Kpler, a fast-growing commodity and maritime analytics firm, raised private equity investment in 2022 to fuel a string of acquisitions : MarineTraffic, FleetMon, ClipperData, and most recently Spire Maritime.

Established financial data players are also investing—in April 2025, S&P Global agreed to acquire ORBCOMM’s satellite AIS (automatic identification system for ships) data business to strengthen its supply chain and maritime intelligence offerings.

Andrew Keller

Managing Director

Overall, investor interest is high due to robust market growth and consolidation opportunities. Notably, valuations have reflected this optimism: Informa sold its Lloyd’s List Intelligence maritime data unit to Montagu for £385 million, which was reportedly 28× EBITDA , underscoring the confidence in future growth.

While there are still considerable investment opportunities in maritime data industry, private equity investors should ask themselves 8 key questions when considering an investment in this space:

1. How big is the total addressable market?

The base line is often the global commercial shipping fleet segmented by type (e.g., container, tanker or bulk carrier, etc.) or size but it is also important to consider the relevance of a full range of potential segments such as ship owners and managers, charters, ports and terminals, logistics and supply chain providers, marine insurers, shipping financiers and lessors as financial commodity traders. Understanding the existing Ideal Customer Profile (ICP) is key to assessing both current opportunities as future growth options.

2. What are the key market growth drivers?

Increasing adoption levels are often a key driver, given the shipping industry’s reputation for conservativism and relatively low levels of digitalization. New regulations are often also significant such as the recent IMO decision on the Reduction of GHG Emissions from Ships.

3. What is the competitive position of the business ?

Identify the direct competitors and their market share—for instance, does the target face competition from giants like S&P Global (after its ORBCOMM AIS acquisition) or from niche specialists in AIS, compliance, etc.? If the market is consolidating, does the company have the scale and breadth to be a likely “winner” or at risk of being marginalized by a larger platform? Also, consider competition from the customer side : some big shipping companies or managers might develop in-house analytics—how does the company justify its value vs. in-house solutions or cheaper alternatives?

4. What is the data quality and uniqueness?

Arguably part of competitive positioning but goes right to the heart of any data business’s value. Consider the primary sources of the company’s data (terrestrial AIS receivers, satellite feeds, proprietary sensors, 3rd party providers, etc.) and how reliable they are and whether the business owns any unique data assets or collection infrastructure that provides a competitive moat.

5. Does the business have an attractive revenue model?

Understanding the breakdown of the company’s revenue (subscription SaaS vs. one-off reports or hardware sales)? For example, Danelec Marine is a hardware-forward data business given its heritage in Voyage Data Recorders but the hardware component may not suit all PE investors.

6. How entrenched is the customer base?

Consider churn and retention for businesses with substantial subscription revenue. Is the data highly valuable and embedded in workflow like Kpler’s commodity cargo data going into financial and physical commodity traders? Does the business own an industry standard – or something that could become an industry standard? (e.g., the Idwal Grade for condition inspection reports.)

7. How robust, scalable and AI Forward is the technology Stack?

Some solutions will require the platform to ingest, process, and analyze massive volumes of data in real time from multiple sources such as satellites, imagery, or IoT sensor data. Investors also need to assess the use of AI/ML: is the company effectively leveraging modern techniques to deliver predictive insights from the raw data? This question addresses both the current capabilities and futureproofing of the tech stack.

8. What are the growth opportunities and adjacent markets?

Beyond the current core offerings, where can the company expand? For instance, can a vessel-tracking firm move into analytics for supply chain or insurance as Windward is attempting . Consider maritime-adjacent verticals: defense, logistics software, even ESG reporting platforms–does the company have a roadmap to tap into these? An investor should query management’s vision for growth: Will it be via new products, geographic expansion, or deeper integration with customer workflows? Also, assess if further M&A is part of the strategy (and if the team has a track record to execute it). Essentially, ensure there is a credible path to scale, either organically or inorganically, in a way that leverages the company’s strengths.

Conclusion

Grant Thornton Stax’s perspectives are informed by deep experience across the broader maritime ecosystem and specifically maritime software. With prior work including analysis of the maritime passenger segment, commercial lines, as well as offshore, we are prepared to support any buy and build strategies.

To learn more about our expertise, experience, and how we curate tailor-made buy and build playbooks through diligence, visit www.stax.com or click here to contact us directly.

What 2025 Is Demanding from Private Equity: 9 Takeaways from the PE New York Forum

Tue, 20 May 2025 19:10:47 GMT

I was delighted to join a panel on “The Future of Diligence” at the 13th Annual Private Equity New York Forum, hosted by Markets Group on May 14, 2025. Reflecting on the session and the conference overall, it’s clear that private equity’s 2025 playbook is being shaped by a mix of urgency, innovation, and pragmatism. Across LPs, GPs, and advisors, the tone was less about waiting for a window and more about building through uncertainty.

Here are nine themes that stood out:

1. Exit Pressure Is Defining the 2025 Agenda

Paul Edwards

Global Practice Lead

Delayed exits have (in Q2) become the biggest concern for LPs, significantly outranking even geopolitical risk. With more than 18,000 portfolio companies held for 4+ years , PE is sitting on the highest level of aging assets since 2005. Liquidity is no longer a hope; it’s a mandate.

Speakers emphasized that sponsors must move toward realizations, even if the timing isn’t perfect. Continuation vehicles, secondaries, and creative exit paths are now accepted tools for managing toward outcomes.

2. Secondaries Are Now Mainstream and Strategic

Secondaries, once seen as a backstop, are now a core portfolio tool. GP-led processes are increasingly viewed not as defensive, but as strategic: helping GPs manage hold periods, pace distributions, and provide optionality to LPs.

Some firms are building direct secondary capabilities in-house, a sign these processes are now baked into forward-looking portfolio strategy.

3. Sector Dynamics Continue to Split the Market

Sector strength in deal volume is bifurcating. Healthcare, industrial tech, and mission-critical services (especially with embedded tech or compliance intensity) are seeing sustained activity, driven by durability, visibility, and buyer confidence in growth.

Conversely, consumer-facing businesses—especially those reliant on discretionary spend—are continuing to see elongated processes and softer demand. Multiple speakers noted millennials have pulled back spending faster than expected compounding challenges for consumer assets with Covid-era growth expectations.

4. Tech-Enabled Business Models Are Winning (Even Outside SaaS)

"Tech-enabled" now spans far beyond SaaS. In sectors like legal, logistics, healthcare, and education , businesses embedding data, automation, and digital workflows are commanding stronger interest and premium valuations.

Buyers are placing greater value on operational efficiency and defensibility, with digital capabilities remaining central to achieving both.

5. Healthcare Still Draws Conviction but the Playbook Is Evolving

Healthcare continues to be a top sector across growth and buyout strategies, but investor focus is broadening. Beyond traditional roll-ups, there’s increasing interest in data, compliance-heavy, and tech-enabled solutions, especially those intersecting with regulation or demographic tailwinds.

Crossover attention from growth equity and first-time funders is reinforcing momentum.

6. Thematic and Specialist Fundraising Is Driving Diligence Upstream

Sector-specific and thesis-led funds—in areas like vertical SaaS, supply chain, aging, and automation—are winning favor. They’re seen as more defensible in choppy markets and better positioned to articulate growth stories.

This clarity is reshaping diligence timelines: 30%+ of sponsors now report beginning external diligence before management meetings , up from under 10% just four years ago. Investors increasingly want to know how a business grows before committing to why it should be bought.

7. Exit Planning Is Starting Earlier, Too

At the other end of the lifecycle, sellers are planning much earlier. In 2019, only 30% of banked processes had a market study or Quality of Earnings (QoE) ahead of launch. Today, over 70% of banked processes have a market study or QoE ahead of launch.

This reflects what buyers are demanding: sharper narratives, more structured data, and a clear value creation story. Exit planning is no longer a late-stage activity; it’s becoming part of long-term strategy.

8. AI: More to Be Embraced Than Feared

For technology dominating headlines, AI was surprisingly quiet at the Forum, but not absent . The conversation has clearly matured: rather than speculative or hype-driven debate, most speakers treated AI more as an enabler rather than disruptor.

Where AI did surface, it was framed as something to embrace, incorporate, understand, and leverage , particularly in diligence situations and portfolio operations. The consensus wasn’t one of fear or existential risk, but of opportunity.

9. Market Sentiment: Uncertainty Is the New Certainty

After a volatile 2023, slow 2024, and uneven start to 2025, the outlook for the remainder of 2025 appears more stable, or at least an acceptance of what “new stable” looks like.

The asset class appears to continue having medium- and long-term health ( 30% of LPs plan to increase PE allocations this year ), but with a heightened focus on quality over speed. Still, uncertainty remains. Many GPs are asking: will H2 2025 finally deliver what 2023 promised?

Final Word

Private equity is adapting and fast. This year’s forum made clear: this isn’t a market for “wait and see.” GPs are being asked to exit earlier than comfortable , diligence sooner , and underwrite more creatively , all while navigating a shifting macro and consumer backdrop.

Whether H2 2025 finally delivers on the long-awaited deluge remains to be seen — but one thing’s clear: standing still is becoming less of an option .

Learn more.

The New Standard of Buy-side Diligence: Embedding Value Creation

Fri, 16 May 2025 20:23:09 GMT

Vince Zosa

Partner

It's no surprise that value creation has become the primary driver of portfolio returns in private equity. With exits delayed, fundraising tight, and macro conditions still uncertain, any new deal must be initiated with a critical value creation (VC) lens for EBITDA expansion. What stands out is the increasing rigor applied during buy-side diligence to develop real conviction around an asset’s value creation potential.

Over the past 12 months, we’ve seen a clear shift: investors now demand a higher level of conviction on near term VC as part of the diligence process . Supporting over 300 transactions annually, Grant Thornton Stax has a front-row seat for this shift. Buy-side diligence is now expected to validate not just the business, but the value creation plan (VCP) itself.

At a recent PE conference, a managing deal partner of leading mega-cap sponsor summed it up well on a panel: “In this environment, we don’t invest to underwrite the company, we underwrite the plan.” It’s a clear signal that EBITDA improvement is now embedded in the deal model, borne from actionable and measurable value creation driven actions. This sponsor takes it a step further by partnering the lead deal and operating partners to each deal at inception, creating shared accountability and commitment for executing the VCP.

An early VCP plan is now increasingly part of the deal process and Investment Committee (IC) level scrutiny, the key challenge is how to filter what’s real or not when it comes to VC levers that can be truly underwritten during the diligence stage.

Vince Zosa

Partner

Here are five key value levers that top-performing investors are scrutinizing from day one:

1. Build a modern revenue engine to 10x pipeline within your ICP

To unlock year-one growth, the most powerful lever is expanding penetration within your core product offering. While management presentations are naturally bullish, true pipeline predictability requires laser-focused Ideal Customer Profile (ICP) mapping and targeting. Effective diligence should segment the ICP and map year one addressable potential for current and new logo penetration, often down to the account level.

The key to underwriting near-term core growth is having a clear view of the top potential accounts capable of driving the next 10%+ of revenue growth. With precise targeting in place, investments in sales coverage and marketing demand generation to increase the top the funnel becomes significantly less risky.

2. Unlock True Pricing Power Without Losing Market Share

Few VC plans are created without pricing as a key lever. Yet, the ability to raise prices while also driving share gain is far harder to underwrite, especially in late-stage diligence. The real marker of pricing upside is demonstrated pricing power. At Stax, with deep experience across hundreds of transactions each year, we test for the ability of market leaders to command price increases without triggering customer churn.

For a recent leading industrial distributor, we uncovered such strong stickiness, driven by differentiated services and VMI programs, that customers were unlikely to switch unless savings exceeded 10 to 15% on major spend categories. This provided high conviction that moderate annual price increases posed minimal risk.

3. Beware the cross-sell fallacy

I’ve seen many value creation plans rely on overly aggressive cross-sell assumptions that often fail to materialize. While cursory analysis may suggest significant share-of-wallet potential by increasing penetration across a company’s product suite, execution is far more complex. Successful cross-selling typically requires competitive displacement, profitably and enacted without price discounts as the primary incentive. For real cross-sell penetration to take hold, there must be a clear, incremental value to the customer that strengthens with each additional product purchased.

In SaaS, a typical growth scenario involves a land-and-expand approach, where additional modules are sold following initial implementation. A holistic value proposition to customers for multiple modules must include either a combination of integrated user benefits (e.g., streamlined workflows through a unified interface), or improved outcomes from the combination of the different modules (e.g., lower customer acquisition costs through combined sales and marketing efficiency tools). Absent real customer value, the ability for a company to cross-sell is limited to simple discount bundling, an approach that rarely proves sustainable over time.

4. Reducing Underperformance and Variability

A key opportunity for immediate post-deal value creation lies in addressing underperformance across specific business units, customer segments, products, or locations. While diligence typically focuses on the top 80%+ of what drives revenue, there is often untapped value in identifying pockets of addressable low performance.

For a recent industrial services target, we found significant variability in revenue performance across 10% of their branches. Further analysis of local demand and competition suggested that much of this performance gap stemmed from controllable factors. Even if diligence doesn’t pinpoint every root cause, isolating execution-related underperformance, provides a clear, actionable path for improvement that can be pressure tested immediately post-close.

5. Capture white space for the core

Most diligence processes characterize white space or adjacency growth as mid-to-longer term value creation opportunities with limited impact in the first year of hold. However, exceptions occur when there’s untapped potential to drive penetration of existing products through new channels or strategic repositioning to target untapped customer segments.

A recent example often cited is the “Stanley cup play” – not hockey, but a $500M+ growth surge for a well-known beverage container brand repositioned to appeal to fashion-forward female customers. Injecting new growth in core products through improved channel and repositioning is a less common source of immediate value creation, but potentially high impact for leading mature brands with high extension potential.

The increasing confluence of buy-side diligence and value creation planning has continued to shape target evaluation processes towards a deeper identification of immediate value creation levers that can build early momentum post deal. In today’s deal environment, where top assets continue to command high multiples, successful investments will be closely correlated to the realization of the initial value creation thesis.

At Grant Thornton Stax, our teams work collaboratively with management to help guide value creation from post-deal to pre-acquisition. Managing Director, Vince Zosa , specializes in working with our clients on value creation strategies to maximize portfolio performance and create successful exits. To learn more about our expertise, visit www.stax.com or contact us directly .

Featured by Brew Markets – Stay tuned for a huge cable deal

Fri, 16 May 2025 16:37:03 GMT

Palash Misra

Partner

This article was originally featured by Brew Markets and was written by Judy Dutton .

Two major cable companies are merging to better compete with wireless internet and streaming competitors.

Don't touch that dial—two of the biggest cable providers in the country are joining forces to form a TV & internet provider powerhouse.

Charter Communications has agreed to buy privately-owned Cox Communications in a $34.5 billion deal. This combined colossus will change its name to Cox Communications, while Charter’s Spectrum will become the consumer-facing brand, offering cable, broadband, mobile, and other services.

The megadeal, if and when it closes, will bring together two sizable customer bases: Charter boasts 31.4 million broadband users and 12.7 million cable TV subscribers across 41 states, while Cox has 6.5 million broadband clients in 18 states.

News of this potential cable tie-up caused Charter’s stock to pop by 1.83%—a welcome surge at a time when seemingly every company on the planet is rolling out a streaming service. In such a cutthroat environment, deals like these have become critical for survival: It’s merge, or die.

Palash Misra

Partner

Cable is consolidating

It wasn’t very long ago that cable TV was the only game in town. But now, cord cutting has become commonplace, forcing Charter and Cox into an uncomfortable self-reckoning.

“Charter’s core market of cable television is seeing declining subscriber growth,” wrote managing director at global consultancy Stax Palash Misra . “The goal of the merger is presumably to broaden its portfolio to better compete against wireless carriers offering 5G home internet services and streaming platforms that are eroding traditional cable TV viewership.”

This merger comes on the heels of Charter’s acquisition of Liberty Broadband in an all-stock deal . Charter expects there will be about $500 million in annualized cost synergies within three years of closing, further strengthening Charter’s position in a crowded field.

While streaming has stolen plenty of cable customers, that's not the only problem companies like Cox and Charter are facing. Wireless services are eroding the broadband approach to delivering high speed internet to customers, with new competitors like Starlink eating into the incumbents’ market share. But Charter can offer higher speeds at lower costs than these startups thanks to the economies of scale, and today’s deal with Cox was likely designed to underscore those slim advantages.

“Cable is a scale business; added size should help Charter compete better with the larger telcos, tech companies, and Starlink,” explained Co-CIO of Value at Gabelli Funds Chris Marangi.

Don’t forget: Today’s deal will likely test how tough President Trump’s administration will be with antitrust cases . Charter is already lobbying hard for regulatory approval: Its press release talks about “putting America first” by bringing its overseas customer-service jobs back to the US.

Considering the FCC didn’t approve Verizon’s acquisition of Frontier until the company “committed to ending its DEI practices,” that certainly sounds like the right way to woo regulators.—JD

Private Equity's Next Chapter: From Arbitrage to Enduring Impact

Thu, 15 May 2025 19:34:01 GMT

As CEO of the world’s premier strategy consulting firm purpose built for the pace of private equity, I feel I have a unique perspective on the investment industry.

In particular, I regard the private equity market not merely as an investment ecosystem, but as a catalyst for business transformation. In today’s environment, marked by global complexity and disruption, the imperative has shifted from financial arbitrage to fundamental value creation. The most forward-looking clients recognize this and are recalibrating their approach—bringing a sharper lens to diligence, embracing operational intensity, and demanding accelerated impact post-close. In fact, we believe that post-LOI diligence has become the 100 plan .

We work shoulder to shoulder with these investors, in the crucible moments of the deal lifecycle. Whether it's validating a thesis through commercial diligence or partnering with management to reshape the economic value chain, our role is to help translate ambition into action. What we see consistently is that success in private equity now depends on speed, certainty, and the ability to drive performance across multiple levers.

In an era of higher interest rates and global uncertainty, the margin for error is narrow. The best firms are those who act decisively, guided by insight and undeterred by volatility. Private equity, at its best, is not about short-term gain but enduring impact. And our mandate is to help our clients achieve just that—with integrity, precision, and pace.

- Jayson Traxler , CEO

“Larger deals are sort of on hold or moving very slowly. The idea being that if we can move slowly, hopefully we can get some of that clarity of information at some point.”

-Brad Kuntz, Senior Managing Director, Industrials

Stax Advises Tenzing on Investment in ScreenCloud, a Cloud Digital Signage Leader

Mon, 12 May 2025 15:24:08 GMT

Ben Bugg

EMEA Financial Sponsors Coverage

Grant Thornton Stax congratulates Tenzing on its recent strategic investment in ScreenCloud , a global leader in cloud digital signage solutions. We are proud to have supported Tenzing with our investment advisory services in this successful transaction.

ScreenCloud is a rapidly growing digital signage company that enables organizations around the world to transform their screens into powerful communication tools. Founded in 2015 and headquartered in London, ScreenCloud delivers an end-to-end solution used by over 10,000 organizations globally. Enterprises rely on ScreenCloud to support critical internal communications—especially with deskless and frontline teams—and to boost engagement across their broader stakeholder network.

Contact the Grant Thornton Stax team:

Insights Related to TransAtlantic Growth:

Phil Dunne

Partner

Andrew Keller

Managing Director

Paul Edwards Recognized Among Top 25 M&A Leaders of 2025 by The Consulting Report

Mon, 12 May 2025 13:56:17 GMT

Stax is proud to announce that Paul Edwards, Global Practice Lead , has been named one of The Consulting Report’s Top 25 M&A Leaders of 2025 .

As noted in their announcement, “From early-stage diligence to post-close integration, this year’s awardees are navigating an increasingly high-stakes landscape—one where operational precision, cultural alignment, and regulatory fluency are just as vital as financial modeling. These professionals represent the sharp edge of this transformation. They do more than help clients close deals, they’re helping them realize their full value across complex, global, and fast-moving environments.”

Over the past two decades, Paul has become a trusted advisor to many of the world’s top dealmakers. He has built Stax’s private equity practice into a global powerhouse, now supporting more than 300 transactions annually and guiding successful investments across five continents.

Throughout his career, Paul has led over 1,000 engagements for private equity sponsors, spanning buy- and sell-side diligence and growth strategy, and advising on over $100 billion of deal value. Known for blending sharp, data-driven analysis with real-world insight , he brings deep sector expertise in software and industrials .

Congratulations, Paul!

Featured by Utility Fleet Professional: Navigating the Zero-Emission Headwinds

Fri, 09 May 2025 17:13:08 GMT

Phil Dunne

Partner

This article was originally featured by Utility Fleet Professional and written by

Gary L. Wollenhaupt .

Many fleets in the utility sector have set ambitious zero-emission targets, but headwinds in the U.S. electric vehicle market – due to production slowdowns and an evolving regulatory environment – are creating new obstacles.

Even so, it doesn’t appear that fleet managers are significantly adjusting their electrification roadmaps. American Electric Power, Pacific Gas and Electric, Sacramento Municipal Utility District and numerous other utilities have made net-zero pledges that they intend to keep.

These long-term goals of zero emissions are still in place despite recent regulatory changes from the Biden administration, which shifted emphasis in the EV landscape to emissions performance rather than mandating specific technologies. Under the second Trump administration, tax incentives for clean vehicles and charging infrastructure could also be under fire.

Given manufacturer production planning, the enormous inertia of environmental policy and yearslong utility fleet buying cycles, redirecting the momentum of zero-emission planning is like trying to turn a battleship – it doesn’t happen quickly. Even a five-year horizon doesn’t provide a definitive view of the future. While EV plans remain solid, there will be a few bumps along the way.

The market uptake on consumer EVs was not what industry stakeholders were hoping for or anticipating, so the trend is shifting toward hybridization, noted Phil Dunne , U.K. managing director at the global strategy consulting firm Stax ( www.stax.com ). “Everybody knows that fleets will continue on the electrification path, but in this transition period, nobody’s quite clear on what portion of the fleets they should be electrifying, so it’s a difficult period for fleet managers.”

In the short term, utilities could see fewer EV buying options as the market realigns within the regulatory environment. Manufacturers may drive adoption rates of current EVs through pricing.

“The only short-term options are around incentives; that’s where the manufacturers have some level of control,” Dunne said. “At the point of sale, they can incentivize differently around hybrid and EVs versus internal combustion engine vehicles.”

Dunne recommended fleet managers stay the course, taking advantage of sales incentives while monitoring market developments.

In some areas of the U.S., sales of medium- and heavy-duty ICE vehicles are hampered due to the Advanced Clean Trucks regulation, which started in California and has spread to other states. The regulation requires an increasing number of zero-emission vehicles to be sold until ICE vehicles are completely outlawed by 2036. Per the act, 11% of all model-year 2025 semis, garbage trucks, cement trucks and other heavy-duty trucks must be EVs.

However, truck dealers cannot sell newer, more environmentally friendly diesel and gas vehicles because fewer EVs are being driven off the lot. Older vehicles with higher emissions levels may stay in fleets longer.

Phil Dunne

Partner

Working the Plan

As noted earlier, Sacramento Municipal Utility District plans to stay the course toward its net-zero carbon goals. Casey Fallon, SMUD’s director of purchasing, warehouse and fleet, said the organization stands by its “moonshot” goal of zero emissions from the power supply by 2030 – and they’ve made impressive progress.

SMUD has followed national trends in the sense that the utility is tracking outcomes beyond simply buying a certain number of EVs each year.

“As a fleet operator, we look at outcomes, such as zero-emission miles driven per year,” Fallon said.

In 2020, zero-emission mileage accounted for 1% of SMUD’s mileage. By the end of 2024, zero-emission miles rose to 3%. In January 2025, EV mileage accounted for over 6% of the utility’s mileage due to new electric pickups joining the fleet.

Across all types of vehicles, SMUD’s carbon dioxide emissions have decreased from 5,600 metric tons in 2019 to about 3,900 metric tons in 2024.

“We’re just trying to figure out ways to use hybrid and zero-emission vehicles in practical applications that will create these outcomes,” Fallon said.

SMUD has made significant investments in EVs, such as converting to an all-electric sedan fleet in 2021. Additional improvements have resulted from driver education and training.

“We can change behaviors like reducing nonproductive idle time rather than just trying to buy more EVs,” Fallon said.

California’s Advanced Clean Fleets Regulation (ACFR) is influencing SMUD’s fleet purchasing strategy. The regulation rules cover medium- and heavy-duty trucks, which are about 40% of the 1,000 assets in SMUD’s fleet. There are two paths under the ACFR: the purchase option or the milestone option. Under the purchase option, 50% of vehicles bought in 2026 or 2027 must produce zero emissions. The milestone option graduates the fleet’s makeup, from 10% EVs in 2026 to 100% by 2042.

“That gives us quite some time to figure this out, and one of our goals is to be on the purchase plan until 2026 when we’ll probably switch over to the milestone plan and manage our outcomes that way,” Fallon said.

Given the turmoil in the EV market, SMUD plans to focus on adding light-duty all-electric pickups and hybrids to its fleet over the next several years. According to Fallon, “That approach will help us with our outcomes-based goals to reduce emissions.”

In the meantime, heavy-duty EV pickups will join the SMUD fleet as the utility adjusts to the different duty cycles of EVs, such as charging requirements and range expectations.

Featured by Euronews—Why are more private equity companies entering the travel sector?

Wed, 07 May 2025 17:07:04 GMT

Andrew Keller

Managing Director

This article was originally featured by Euronews and written by Indrabati Lahiri.

Private equity companies are increasingly showing an interest in hotels, resorts and restaurants, in an attempt to convert them into higher-performing assets for a successful exit.

Last year experienced a rebound in private equity deals in the travel sector, in line with surging travel demand. This was driven mainly by an ongoing recovery of destinations in the Pacific and Asia, as well as a strong performance from large source markets.

In the second quarter of 2024, fourteen private equity deals worth a combined $822.9 million (€724.4m) took place in the European tourism and leisure sector, according to the GlobalData’s Deals Database .

Key European private equity deals in the travel sector in 2024 include Ares Management Corporation and its operating partner EQ Group buying UK commercial property development group Landsec’s entire hotel portfolio, in a deal worth about £400m (€466.7m).

But why are private equity companies investing more in the global travel and tourism sector at the moment?

Andrew Keller

Managing Director

Post-Covid rebound

During the pandemic, while travel demand lagged, undervalued assets were snapped up by several PE companies, who planned on investing further in them later on.

“PE activity in the travel sector has seen a significant increase, accounting for around 40% of UK travel M&A in 2024, with particularly strong interest in tech-enabled and experiential travel companies,” Andrew Keller , director at Stax Consulting, said.

He continued: “This surge is being driven by the post-Covid rebound in travel demand, combined with ample available capital (“dry powder”), which is drawing firms back into hospitality, tours, and travel agencies. Many PE firms are pursuing buy-and-build strategies, acquiring a core business and then adding bolt-on acquisitions to scale quickly.”

Graham Miller, director of the Nova School of Business & Economics’ Institute of Tourism and Hospitality, said: “The hotel and resorts sector in particular has seen large investment from private equity. Restaurant groups have been acquired and also tour operators have taken on PE investment.”

Dr. René-Ojas Woltering, assistant professor of Real Estate Finance at EHL Hospitality Business School, explained that this recent rebound in PE interest in the travel sector could also be due to better demographic trends and supply factors.

“Several factors drive this optimism. First, favourable demographic trends, notably affluent baby boomers approaching retirement, indicate potentially higher future demand. Simultaneously, supply is highly constrained in top locations due to high costs (land, regulations, inflation), making it expensive to build new hotels, thus favouring acquisition of existing assets,” he said.

He added: “My own research confirms that private equity firms frequently capitalize on market dislocations, such as during the COVID-19 crisis, by actively increasing acquisitions when assets become available at attractive prices.”

Shift in spending towards luxury

The shift in spending towards luxury and wellness experiences, which includes travel, rather than high-end goods, has also created more private equity opportunities in travel. This often includes upgrading hotel facilities and other travel infrastructure to cater to current travelers.

The emergence of relatively more niche destinations, especially across regions like Central Asia and the Nordics, amongst others, also means that new hotels need to be constructed, or existing ones remodeled and renovated, in several cases, to accommodate the higher tourist flow.

Intrepid Travel, which carries more than 4,000 consumers in Iceland, notes this growing trend across the rest of Scandinavia as well.

“Denmark, Sweden, Norway, Finland, we’ll look to try and be similar numbers in each of those countries. We know there’s real big demand for our style of travel here,” James Thornton, CEO of Intrepid Travel, said.

PE companies have been increasingly involvedin both new hotel constructions and renovations, as well as in engineering technology, maintenance and operations companies in the travel and hospitality sector.

Although the slowing global economy, as well as higher inflation and interest rates continue to remain concerns, consumers are finding ways to keep travelling, opting for more budget trips and shorter itineraries, among others. This could point to the resilience of the travel sector, while potentially contributing to PE interest in the industry.

“We're seeing growth in the higher-end premium space because it's often where luxury travelers are choosing to go on more cost-effective solutions. And equally, we're seeing our more entry-level type travel experiences grow very strongly as well because they're very affordable ways for people to get out and see things,” Thornton said.

How do PE companies change their acquisitions?

Private equity companies typically make a number of changes to the companies they invest in or acquire. This is in order to make them more profitable as an income-generating asset for a certain period of time after which they often sell these businesses at a higher price.

These changes can be anything from light remodelling or renovation, to a complete overhaul or restructuring.

Keller said: “PE firms are driving transformation in the travel sector through a combination of operational and strategic initiatives. On the operational side, they are streamlining systems, implementing modern technologies such as dynamic pricing tools and updated booking platforms, and bringing in new leadership to enhance execution.”

He further highlighted that there was a strong focus on targeting high-margin segments such as experiential, luxury and group travel, while also selling or divesting underperforming divisions and assets.

“Additionally, many firms are pursuing buy-and-build growth strategies—acquiring smaller operators or agencies and integrating them under a unified brand to expand market share and operational efficiency,” Keller added.

In several cases, PE firms could have a specific objective in mind while taking over a travel company.

Miller pointed out: “The investment that Intrepid Travel received from Genairgy, which is linked to the Decathlon company, was done with the aim to help Intrepid grow as an impact-led company promoting responsible travel.”

Woltering explained: “Hotels benefit considerably from this process, as private equity provides both capital and operational expertise, resources often unavailable to smaller, independent, or family-run hotel businesses.”

Private equity companies may also choose to refinance and restructure debt to improve cash flow for the travel companies they take over. They may also expand distribution channels by integrating travel technology and bring in new artificial intelligence tools such as agentic AI.

Many PE companies choose to standardise services across multiple properties for maximum cost efficiency too.

What are the challenges faced in this process?

Although private equity capital and expertise can be very welcomed by some travel companies, the overhaul required to turn some of these companies into long-term profit generating assets can be fraught with challenges at times.

Miller noted: “PE firms have a reputation for being very demanding in terms of their objectives and goals.”

Often, balancing cost-cutting and high quality client services can become tricky, especially in a turbulent market environment.

Keller said: “The travel sector faces several challenges that add complexity to investment and operations. Market unpredictability—driven by volatile demand, shifting booking behaviors, and macro shocks such as geopolitical events- complicate forecasting and valuations.”

He added: “At the same time, firms must strike a careful balance between cost-cutting and maintaining service quality; aggressive reductions can negatively impact customer experience and brand reputation. Additionally, navigating increasingly strict regulations and meeting rising expectations around sustainability and ethical practices present further hurdles.”

Finding the right buyers, who can afford to pay premium valuations even in a competitive market, can also be a challenge for PE companies.

For travel companies, one of the biggest problems could be a loss of brand identity, as rapid changes in branding, management and pricing could all significantly alter a business.

Several PE companies also focus on short-term or immediate profitability, which could put added pressure on these travel companies, and compromise long-term sustainability and customer loyalty.

A clash in ideology and strategies between the original owners of a travel company and PE companies could further complicate such a process.

Miller pointed out: “Always the challenge for investment is aligning objectives and timeframes. If the original owners of the company are still involved then they will not want to lose control, but the investment will be needed to allow them to achieve something they could not otherwise.

“The investors have their own reasons and are less interested in the history, or even long-term future of the company. This alignment is crucial to a successful partnership.”

Macroeconomic and financial challenges such as high financing costs in higher interest rate environments could have a negative impact on investment returns, deal-making and refinancing, although it could also increase distressed buying opportunities, according to Woltering.

Labour shortages and regulatory hurdles could be complicated and time-consuming to navigate as well.

Woltering highlighted: “Post-pandemic, many European markets face acute hospitality labor shortages, complicating recruitment, retention, and operational transitions. Private equity firms may encounter resistance from existing employees or unions, particularly if implementing efficiency-focused measures.

“European cities often have stringent regulations, including zoning, planning, and historical preservation rules. These regulations can significantly delay or complicate hotel renovation and repositioning efforts, increasing both time and costs involved in executing a PE firm's business strategy.”

Stax Provides Sell-side Support to Vision Government Solutions on its Recapitalization by Great Hill Partners

Tue, 06 May 2025 16:52:17 GMT

Grant Thornton Stax congratulates Vision Government Solutions , a leader in the appraisal, computer-assisted mass appraisal (CAMA), and property tax industry, and a portfolio company of Rubicon Technology Partners , on its recent majority capitalization by Great Hill Partners . Stax provided sell-side support , working closely with the Vision management team and their investment bank, Shea & Co.

Vision Government Solutions delivers advanced, customizable CAMA and tax software, along with expert appraisal services and leading GIS technologies. Serving over 900 municipalities, Vision has built a strong reputation through its commitment to service excellence, in-depth appraisal knowledge, and innovative digital tools that modernize property assessment. Its platforms enable tax assessors and collectors to streamline operations, improve public service, and uphold fairness in property taxation. Valuation precision, high-quality data, and customer support are core to Vision’s approach, backed by a team of seasoned professionals.

Contact the Stax team to learn more:

Paul Edwards

Roy Lockhart

Partner, Global Practice Lead

Roy Lockhart

Partner

Will Barden

Partner

About Grant Thornton Stax

Beyond the Sale: Why Exit Planning Starts on Day One

Mon, 05 May 2025 21:12:40 GMT

Today’s M&A environment faces amplified risks and heightened investor conservativeness. Yet, competition for ‘A-grade’ assets remains fierce, driving wide and competitive auction processes and buoyed multiples. In this context, effective exit planning has become crucial for management teams and sponsors to prepare and position assets for sale, ensuring best-case transaction outcomes, a smooth transition of ownership, and accelerated value creation for the next sponsor.

As part of this preparation, sell-side market studies have emerged as an industry standard, offering significant benefits for both deal outcomes and strategic intelligence by helping:

Sharpen market and asset positioning: Helps investors clearly understand the business’s place in the market, guiding thesis development, and encouraging early productive “leaning-in.” (At Stax, we regularly hear of clients passing on deals due to misalignment or misunderstanding of positioning.)
Preempt buy-side diligence hurdles: Mirrors key diligence workstreams to highlight strengths, address potential red flags, and equip management with resources to prepare for and mitigate potential risks likely raised in buy-side diligence.
Inform long-term value creation: Provides a solid research base that not only informs the business’s strategic planning but also accelerates strategic planning and growth for the next investor.

Why Exit Planning Starts the Day After Close

For sponsors, exit planning should begin the day after the deal closes. The sooner investors align around a long-term vision and roadmap to get there, the better positioned they are to create value and ultimately command a premium at exit.

This is particularly true for growth-state and mid-market companies, where product-market fit, customer alignment, and core strengths are often still evolving. Capital opens the door to scale, but top-performing investors know how to build toward proof points and strengthen the narrative over time.

The First 100 Days: Setting the Strategy in Motion

The 100-day plan should reflect an informed, forward-leaning investment thesis. Sponsors must enter with a clear sense of how to create inroads into new segments, test adjacent plays, and elevate long-term initiatives from “potential” to “demonstrated.”

The goal is not to finalize every move in the first three months, but to lay the groundwork. The most successful holds are those where initial wins build confidence in strategy, and every milestone reinforces the exit narrative.

Adaptability is a Competitive Advantage

Even the best-laid plans evolve. Businesses operate in dynamic environments, and external factors, from market shifts to regulatory changes, can quickly compound deviations from plan.

Will Barden

Partner

Roy Lockhart

Partner

Sam McCabe

Director

The First 100 Days: Setting the Strategy in Motion

Adaptability is a Competitive Advantage

Even the best-laid plans evolve. Businesses operate in dynamic environments, and external factors, from market shifts to regulatory changes, can quickly compound deviations from plan.

Regular recalibration during the hold period is not optional, it’s essential. The ability to make well-informed adjustments, while staying focused on long-term value creation, separates reactive investments from resilient ones. By combining real-time market feedback with internal performance analysis, investors can refine strategic direction, redeploy resources, and reposition the story around emerging strengths. This proactive, iterative approach not only supports growth, but it also gives buyers confidence that the business is under capable stewardship.

When the time comes to exit, sponsors should be able to point to more than just top-line growth, they should be able to demonstrate how the company has evolved, where it has won, and why those wins matter.

Why a Buy-Side Lens is Essential Before You Sell

As an exit approaches, viewing a business through a buy-side lens shifts from a nice-to-have to a strategic imperative. Investment committees today have become increasingly discerning, leaning in hard on A-grade assets, and walking away early from anything that signals elevated risk or uncertainty.

To maximize outcomes and minimize surprises, management teams and sponsors must ask: What will buyers see when they look at us? And just as importantly, w hat might give them pause?

The Buy-side is Asking Different Questions – You Should Too

Customer metrics like Net Promoter Score (NPS) or retention data are commonly cited in sell-side narratives, but it’s critical to recognize how buyers interpret these numbers. Many of these indicators can be reflections of customer sentiment and attitude based on the most recent six months or less of engagement.

Internally generated perspectives (e.g., customer surveys) are naturally colored by long-term relationships and active adjustment or calibration (e.g., by sales reps, teams). In contrast, buy-side diligence teams will take an outsider’s view, probing disconnects, potential risks, or misalignment between messaging and market perception.

Clients often find incredible value in Stax’s deep experience advising hundreds of buy-side deals per year with fully outside-in research. We know what buyers ask, and more importantly, we know what flags get elevated to investment committees. From competitive positioning to pricing power, from customer loyalty to operational scalability, we help clients anticipate a deeper dive.

More Than Damage Control – It’s a Strategic Advantage

A preemptive buy-side diagnostic doesn’t just help surface risks; it creates time and clarity to address them. With enough lead time, some red flags can be mitigated entirely (depending on lead-time to processes), others can be reframed to provide valuable insight into strategic positioning for sale. In some cases, findings from a diagnostic reveal the opportunity to delay a sale by 8-12 months to address key risks proactively.

In other cases, it equips sponsors and bankers with a strong foundation of objective, sometimes brutally so, outside-in research. This not only helps eliminate potential surprises but also empowers management and banks with the intelligence to assuage unfounded risks and demonstrate proactive understanding and planful mitigation of real potential headwinds.

“5 years ago, sell-side Quality of Earnings became the standard. Now we are seeing the same thing play out with sell-side due diligences . Whether it’s a new market, or even founder-owned businesses, you need to have a market study . If you are unwilling to commission a market study, I need to assess as a banker if I want to take them on as a client. I’m interested in helping clients mitigate potholes and battleground issues, and the way to do that is with a sell-side market study . There are usually 4 key issues (outside of valuation) where the client will make money and get returns, 2–3 of those issues a market study will address.” 

—Managing Director, US-based Investment Banker

“While sell-sides have been slower to adopt in the US relative to Europe, that is changing as US PE funds are becoming more specialized themselves and as deals are taking longer to close, there is increased value for a more tailored market study that is frontloaded in the process .”

—Managing Director, US-based Investment Banker

Value Creation Starts with a Plan– And VDD Must Prove It

A formal vendor due diligence (VDD) report must do more than outline performance. It should clearly demonstrate that a credible, actionable value creation (VC) plan is in place and can withstand investor scrutiny.

The most defensible VC narratives are rooted in a fundamentally strong business: those with a well-defined ideal customer profile (ICP), an intentional go-to-market strategy, and track record of growth across core markets. These attributes build investor confidence in the underling health of the platform.

“To generate higher returns in a competitive market with compressed multiples, operational improvements have become essential as financial engineering alone no longer delivers target returns. Enhanced value creation capabilities also provide a competitive advantage in sourcing and winning deals by demonstrating specific operational expertise to sellers.”

—Vice President, European Mid-Market PE

De-Risking Growth with Research-Backed Clarity

What sets a strong VDD apart is its ability to move beyond general aspiration. It should segment growth opportunities as “short-putts” versus “long-shots,” supported by data, which may include:

Customer case studies
Comparative needs assessments
Quantified demand for cross-sell or product expansion opportunities

This research-backed segmentation lowers the inherent risk aperture, encouraging investors to lean in, and building a plan which they can build on rather than define from scratch.

The Flywheel: From Planning to Execution

Post close, the VC plan becomes the operating mandate. But to drive results, long-term strategies must be translated into specific, near-term actions.

Long-term planning informed by VDD must be actioned through near-term value creation steps which are specific, and rooted in the existing people, processes, capacity of the business, and newly accessible cash flows. A VDD-informed VC plan provides not only the vision but the credibility to execute, ensuring momentum doesn’t stall after the deal closes.

Key Takeaways to Prepare for Exit

Exit readiness begins the day after close—not six months before sale.
Buy-side diagnostics de-risk the narrative and drive stronger positioning.
A well-structured VDD must prove not just performance—but a plan for future value.

Grant Thornton Stax has supported many of private equity’s most successful and enduring firms across the full investment lifecycle—from buy-side diligence and growth strategy to add-on M&A and exit planning.

Whether supporting a single deal or working across multiple investments, we’ve seen that the most successful sponsors are those willing to challenge their assumptions with deep, research-backed insights—and use that intelligence to guide growth from day one.

Stax Delivers Sell-side Support to Equity Methods on its Acquisition by HGGC

Tue, 29 Apr 2025 16:51:22 GMT

Stax congratulates Equity Methods —a leading provider of executive compensation and stock-based compensation reporting, valuation, and advisory services, and a portfolio company of Montage Partners —on its recent acquisition by HGGC . Stax provided sell-side support, working closely with the Equity Methods management team and their investment bank, Harris Williams.

Equity Methods is a specialized firm offering executive compensation and stock-based compensation (SBC) reporting, valuation, and advisory services. The company partners with both public and private organizations whose compensation programs require specialized expertise for design, implementation, valuation, and reporting. Since its founding in 1998, Equity Methods has supported more than 1,000 clients, including over half of the Fortune 100, across the U.S. and internationally.

Contact the Stax team to learn more:

Will Barden

Partner

Tyler Veit

Roy Lockhart

Tyler Veit

Managing Director

Partner

Will Barden

Partner

Ow en Tindle

Owen Tindle

Managing Director

Tyler Veit

Partner

Owen Tindle

Managing Director

About Stax

Featured by Healthinvestor UK: The opportunities in the UK healthcare sector

Mon, 28 Apr 2025 16:09:17 GMT

UK independent healthcare is gaining ground as the NHS struggles with several key challenges, including record wait times, staff shortages, and draining capital. In an in-depth discussion with HealthInvestor UK , Managing Director Adam Thorpe highlights how providers who capitalize on tightening government budgets, while continually delivering quality care in high-need areas, are poised to succeed—especially if they strike the right balance between public service and profitable private offerings.

Learn why Adam believes UK healthcare is entering a pivotal moment, what challenges he feels remain for independent providers, and his observations on how private sector involvement is shaping the future of care delivery.

“The UK has always felt very proud of the NHS, but attitudes are shifting, and the NHS needs to evolve. It makes sense for patients to get treatment in the independent sector if they are satisfied with the quality and CQC rating of the provider and it helps reduce waiting times and improve outcomes.

“There is more NHS funded volume going into the independent sector than before, but patients are also increasingly acting as consumers and getting treatment funded by private medical insurance or just paying themselves. This is a notable trend compared with 5-10 years ago.”

-Adam Thorpe, Managing Director, Healthcare

“The UK has always felt very proud of the NHS, but attitudes are shifting, and the NHS needs to evolve. It makes sense for patients to get treatment in the independent sector if they are satisfied with the quality and CQC rating of the provider and it helps reduce waiting times and improve outcomes.

“There is more NHS funded volume going into the independent sector than before, but patients are also increasingly acting as consumers and getting treatment funded by private medical insurance or just paying themselves. This is a notable trend compared with 5-10 years ago.”

-Adam Thorpe, Managing Director, Healthcare

Stax Recognized as a 2025 Top Consulting Firm by Management Consulted

Fri, 25 Apr 2025 19:03:14 GMT

Grant Thornton Stax is proud to share that we have been named one of Management Consulted’s 2025 Top Consulting Firms. This recognition highlights top firms driving meaningful change in a rapidly evolving industry landscape.

The 2025 rankings, based on seven key criteria, showcase a market in transition—where emerging firms are rising in prominence, while some traditional players, particularly those focused on the public sector, have seen their standing decline amid shifting trends in prestige and compensation. The list also mirrors growth patterns across sectors like healthcare, technology, financial services, and supply chain—areas where hiring and expansion are thriving.

As a global strategy consulting firm, Stax partners with private equity firms, PE-backed companies, hedge funds, and investment banks, providing actionable, data-driven insights across the investment lifecycle . For more than 30 years, Stax has been proud to support thousands of engagements across a wide range of industries and markets.

We are honored to be recognized for our impact and contributions, and we thank Management Consulted for this distinction. We look forward to continuing our growth and innovation in 2025 and beyond!

Featured by StacheCow—Private Equity Insider: What We Look for in a Brand with Paul Edwards, Stax

Fri, 25 Apr 2025 17:28:07 GMT

Paul Edwards

Global Practice Leader

This article was originally featured by StacheCow and written by Victoria Campisi .

Many private equity firms evaluate hundreds of brands each year — but only a few stand out. As economic conditions shift and competition for capital intensifies, franchise founders need to understand how investors think and what truly moves the needle during a deal process.

StacheCow sat down with Paul Edwards , managing director at Stax , to discuss the top traits PE firms look for in a brand, why leadership alignment matters more than ever, and how brands can prepare for a stronger, smoother exit.

Paul Edwards

Global Practice Leader

StacheCow: When looking at a brand to potentially acquire, what are some of the traits you are looking for?

Paul Edwards: The traits we look for are:

A Defined Customer or Ideal Customer Profile (ICP): Having a well-defined customer or ICP shows that the brand understands its target market and how to reach it. This clarity makes go-to-market strategies repeatable and scalable. Whether it’s a specific buyer persona or a clearly segmented market, PE firms want to see brands that know who they serve, why they win and how to win more of them. A loyal customer base is a huge plus too — PE believes a lot in brand “communities” and having an established community is a key part of brand success.
Niche Market Leadership: PE firms value brands that dominate, or have the potential to dominate, a specific niche — ideally #1 or #2 in their defined segment is better than being #5 in a much larger segment. They look for strong brand equity, customer trust and not being at “fashion” or “fad” risk.
Growth Potential: A brand should have clear, actionable growth levers, such as new products, markets or geographies. PE firms are drawn to brands with opportunities for cross-selling, upselling or digital modernization. Essentially, does the brand have permission to expand from its current customer, or current price point, or current offering?

StacheCow: How important is the founder/leadership to your purchase decision?

Edwards: The founder/leadership team is often a deciding factor, especially in deals where the brand’s success is closely tied to the founder’s vision or relationships. Even with a great product, a weak or misaligned team can kill a deal. That said, a founder that’s not going to be flexible in expanding a brand or considering acquisitions can kill a deal for other reasons.

StacheCow: How important is the due diligence process?

Edwards: It's crucial as it confirms the brand’s positioning, customer loyalty, pricing power, and growth potential. Ultimately, a brand's strength and very definition is in the eyes of the market and its customers, not management, so hearing from them tells the best story. Of course, operational risks are a key part of diligence too, especially around any legal liabilities, IP concerns, customer concentration, supply chain fragility, etc.

Moreso in diligence, PE firms are also able to start shaping the value creation direction for the business too, so diligence is often used to unearth and validate those brand permissions.

StacheCow: What is the number one thing a brand can fix now to impact the exit later?

Edwards: Know your customer. Define them, define why you’re best suited to serve them and why there is sustainability to that. Too often teams approaching exit feel the need to show breadth or “new,” and that often is just confusing. There is infinite, derisked growth potential within a defined and loyal base.

StacheCow: What is the number one mistake a brand makes when starting to exit?

Edwards: Starting too late. Simple as that. There should be no surprises to a brand in an exit process.

Featured by Modern Healthcare: Why economic uncertainty is slowing digital health M&A

Fri, 25 Apr 2025 15:45:54 GMT

Economic uncertainty has dampened the anticipated digital health M&A momentum for early 2025, but the sector is still far from stagnant. While larger deals and IPOs have largely paused, there have still been smaller, strategic acquisitions continuing to push forward. This signals that investors are recalibrating—not retreating—and using this phase to strengthen fundamentals and focus on value creation .

In Modern Healthcare's recent article, Brad Kuntz, Senior Managing Director, discussed how potential acquirers are seeking for clarity on more volatile aspects such as interest rates and the extent to which businesses will be impacted by tariffs.

“Larger deals are sort of on hold or moving very slowly. The idea being that if we can move slowly, hopefully we can get some of that clarity of information at some point.”

-Brad Kuntz, Partner, Industrials

“Larger deals are sort of on hold or moving very slowly. The idea being that if we can move slowly, hopefully we can get some of that clarity of information at some point.”

-Brad Kuntz, Partner, Industrials

Featured by Microgrid Knowledge: How President Trump’s China Tariffs Could Undermine Distributed Energy Gains in the U.S.

Wed, 23 Apr 2025 13:45:54 GMT

Phil Dunne

Partner

This article was originally featured by MicroGrid and written by Lisa Cohn .

Electricity consumption is expected to increase by 50% by 2050, and energy storage, electric vehicles and microgrids are expected to play an important role in meeting that demand. But President Trump’s tariffs on China , along with China’s new rare earth material export restrictions, are expected to slow deployment and raise prices.

Phil Dunne

Partner

With U.S. electricity demand expected to increase 2% annually and 50% by 2050, renewable resources, energy storage, electric vehicles (EV) and microgrids are seen as critical resources that can be deployed quickly without harming the environment.

In fact, solar and wind are being installed at speeds five times faster than all other new electricity sources combined. In 2024, solar added more new capacity to the grid than any energy technology in the past 20 years. In 2024, the U.S. installed 50 GW of new solar capacity. Especially when paired with energy storage, solar plays an important role in meeting demand.

Bidirectional EVs also are important to meeting growing load growth because their batteries can support the grid during emergencies, provide backup power during outages and cut energy costs. Projects by Nuvve and PG&E are some of the efforts taking place right now to understand how EV batteries can help meet global electricity demand.

Tariffs expected to raise prices, spark supply chain delays, boost energy costs

But Trump’s move April 9 to increase tariffs on Chinese imports–raising them effectively to 145%, including levies imposed earlier this year–is expected to undermine the ability of these technologies to meet booming demand. The tariffs–along with China’s new restrictions on exports of rare earth minerals used in EVs and storage–will raise prices, create supply chain disruptions and boost energy costs, industry members said.

“Since the tariffs are so high and China is the number one source of batteries, it can impact the cost of microgrids,” said Peter Asmus, executive director at the Alaska Microgrid Group. “There’s so much on and off of the tariffs, the overall impact is uncertainty, which isn’t good for any marketplace.”

Pragathi Darapaneni, a senior materials scientist and former researcher at Argonne National Laboratory , said China’s export restrictions on rare earth materials will lead to higher costs and material availability challenges, especially for battery-grade lithium carbonate, graphite anodes, LED phosphors and permanent magnets used in motors.

“China controls over 85% of the global rare earth processing capacity, and many critical battery components are tied to these materials,” she said.

The microgrid, storage and EV industries need to diversify battery chemistries to reduce relying on rare earth materials, especially lithium, cobalt and nickel, she added.

Prices for EVs and stationary storage expected to increase

In the short term, prices for EVs and stationary storage systems will likely rise due to increased raw material costs, Darapaneni said. In addition, the clean energy industry may experience bottlenecks and delivery delays, particularly in high-performance applications that require tightly specified materials, she said.

“Companies without diversified sourcing strategies or domestic processing capabilities may face production slowdowns, which could ripple into deployment timelines for EV fleets and grid storage,” she said.

Also concerned about how Trump’s tariffs will hurt energy storage is Mike Wietecki, senior vice president of strategy and regulatory affairs at Powin, which offers utility-scale energy storage systems.

Uncertainty will slow projects

“The tariff policies and foreign trade policies the administration are putting in place are injecting a massive amount of uncertainty into the market,” Wietecki said. It takes years for utility-scale projects to come online, he noted. If a manufacturer like Powin signs a contract with a utility, the earliest the company will begin importing product for that project is eight to 12 months, he said.

“This is a truly global supply chain,” he added.

Powin’s contracts are typically fixed price. If tariffs change during the time that passes between contract signing and project startup, someone will have to make up the price difference.

Why energy prices may increase

Because there’s a trend toward utility-scale projects being ratebased by state regulators, ratepayers could end up paying higher prices, he said.

“Energy prices will go up, leading to inflation,” Wietecki said. “Even the uncertainty of supply chain integrity will cause energy prices to go up and cause inflation. It’s going to make everything more expensive.”

For Powin, one answer is to focus on markets that provide more certainty.

“The U.S. was a great market for infrastructure improvement through solar and energy storage over the last couple of years, but capital flows can quickly move away from markets. They are going to places like the European Union (EU),” he said.

Even with the regulatory hurdles of the EU’s highly regulated market, the EU is a more attractive market because it provides more certainty, he said.

How the EV industry will be hurt by export restrictions

Phil Dunne , UK managing director at the consultancy Stax, pointed to likely challenges to the EV market as a result of rare earth mineral export restrictions from China. He said that so-called rare earth minerals aren’t rare because there are deposits all over the world, but not in high enough concentrations to make them economically viable to mine.

“China currently mines about 50% of global supply of neodymium , which is a key constituent of permanent magnets that are used in the most common EV powertrain technologies,” he said.

But the main challenge is processing mined materials. China now processes more than 90% of the global supply, Dunne added.

There’s now a rush to mine and process elsewhere, he said. That’s based on car manufacturers' requirements and willingness to pay a premium. It will take time to develop mining and processing facilities outside of China.

“Although vehicle manufacturers will have been building up inventory for some time, the just-in-time nature of automotive supply chains means that the impact of China tariffs and export restrictions will have a significant impact on the cost and availability of EVs, while new sources of supply are established, and different EV powertrains are explored,” Dunne said.

Tariff damage can’t be quickly erased

The tariffs and export restrictions will slow efforts to meet burgeoning power demand with clean energy, and their effect can’t be undone quickly.

“Even if the tariffs go away tomorrow, I don’t think that injects certainty back into the U.S. market immediately,” said Wietecki. “It may increase the ability of capital to flow into infrastructure projects. But the damage has been done. That damage can be healed, but not immediately.”

Stax Recognized by Consulting Magazine for Mentorship and Enrichment Program

Tue, 22 Apr 2025 19:45:53 GMT

Manager

Anantha Natalegawa

Associate Director

Grant Thornton Stax was recently honored by Consulting Magazine at the Rising Star Awards in Chicago for its innovative approach to talent development. Vegas Rath, Head of Professional Development, accepted the award on behalf of the firm and was recognized for leading the launch of Stax’s Task Relevance Maturity (TRM) framework.

At Grant Thornton Stax, the foundation of our growth has long been built on a strong culture of apprenticeship and internal leadership development . As the firm continues to scale globally, we are evolving this model to meet the needs of a more dynamic, distributed workforce. Central to this evolution is our TRM framework—a key enabler of professional growth and performance at scale.

The TRM program supports this next chapter by clearly defining success at every level, aligning expectations across the organization, and providing employees with the tools and feedback they need to thrive. By updating job descriptions, competency models, and performance incentives, TRM fosters a culture of clarity, accountability, and growth—while reinforcing Grant Thornton Stax’s commitment to trust, psychological safety, and ongoing development.

This framework ensures that as we grow, we continue to empower our people—enabling them to step into expanded roles, deliver high-impact work, and grow their careers in meaningful ways.

Below is the acceptance speech delivered by Vegas at the recent awards:

“Thank you, Mike, and Consulting Magazine for acknowledging the impactful people development work happening in our industry.

As a talent professional, I’ve always loved working in professional services, because this is an industry where talent truly means everything.

At Grant Thornton Stax, we created the TRM program because we needed something more concrete and actionable than a traditional competency model.

Our people were asking:

What exactly do I need to do to be promoted?
Does “good work” mean the same thing for everyone?

These are important questions. And the TRM program helps answer them. This clarity not only guides performance expectations—it also enables targeted developmental support and actionable feedback. And that, in turn, boosts engagement, motivation, and ultimately, performance.

Thank you again for this honor. Thank you Grant Thornton Stax f or giving me such a great platform! And congratulations to my fellow honorees— I’m grateful to be recognized alongside you tonight."

Darren Buskirk Featured on Management Consulted's Podcast

Tue, 22 Apr 2025 17:44:43 GMT

With deep expertise in private equity consulting—particularly within the healthcare sector—and a proven track record of mentoring top talent, Grant Thornton Stax Managing Director Darren Buskirk recently joined the Strategy Simplified podcast hosted by Management Consulted , to share his insights on building a successful consulting career. In this engaging episode, Darren draws on his leadership experience to discuss:

Why Grant Thornton Stax attracts experienced professionals
What differentiates the firm from traditional consulting
How mid-career hires grow and thrive at Stax
What day-to-day life looks like on high-impact, PE-driven engagements
Tips for standing out in the hiring process

Tune in to the episode to learn more—or explore how you can grow your career at Grant Thornton Stax .

Darren Buskirk

Managing Director

How Destination Management Companies (DMCs) Drive Value from Event Strategy to Execution

Mon, 21 Apr 2025 18:54:28 GMT

David Lindsay

Director

What is the Value of Destination Management Companies in Corporate Events?

Destination Management Companies (DMCs) serve corporates across industries looking to organize company retreats, corporate meetings, incentive trips, and product launches. DMCs provide end-to-end event services from conception through production (i.e., event branding, décor, signage), vendor sourcing (e.g., catering, entertainment), logistics & transportation (i.e., shuttle buses to and from the hotel) and event execution support.

DMCs complement Travel Management Companies (TMCs) such as BCD and Maritz, who may sub-contract a DMC where they lack local expertise or require additional planning capacity.

Importantly, DMCs have deep local expertise and longstanding vendor and venue relationships, crafting tailored and memorable events. They add most value to situations where local expertise is required (i.e., the destination is unfamiliar to the in-house events planner) and / or within large and complex events that require dedicated third-party support.

David Lindsay

Director

Competitive Landscape

The DMC landscape is segmented between:

National / International: The largest DMCs enjoy scale benefits including deep vendor relationships, strong brand awareness, and volume-based vendor discounts—making them well-suited to serve large-scale events and corporate clients.
Examples: PRA, Ovation, Access, 360 Destination Group
Regional: Deep expertise within a specific location or region (e.g., South Florida); often rely on hotel or other third-party referrals.
Local: Small “mom & pop” DMCs that serve smaller or local companies, typically with a presence in a single city/destination.

What are the Potential Risks and Growth Opportunities in the Destination Management Company Market?

DMC demand is inextricably linked to corporate event volume, which has rebounded post-Covid as executives realize the need for face-to-face interaction to drive corporate objectives (e.g., improved employee engagement, morale). Further, these decision-makers are prioritizing corporate events that can incentive and reward top-performing employees, potentially driving revenue growth (i.e., by sufficiently incentivizing sales teams). These events are often in exotic locations with custom offsite activities and are therefore highly addressable for DMCs. Stax estimates the volume of corporate events addressable for DMCs will grow ~10% CAGR over the next five years.

Corporate events can be impacted by economic downturns, as they can be perceived as low-hanging fruit opportunities to cut costs. However, DMCs can in fact be hired as a means to cut in-house costs (i.e., as an alternative to salaried, in-house event planners); scaled national players can also offer favorable contracts and vendor discounts, potentially saving costs versus proprietary events.

What are the Opportunities to Drive Value in the Destination Management Company Market?

While DMCs will naturally benefit from organic growth in the corporate events market, there are a range of incremental growth levers for consideration (non-exhaustive):

Moving upstream into Event Strategy: DMCs can build out Event Strategy capabilities, working with clients to design event concepts that align with the attendee profile, budget, and objectives; such services can help position the DMC as a strategic, long-term partner.
Geographic expansion: Tar get up-and-coming destinations (e.g., secondary US cities, Europe) that can often be less expensive than traditional hotspots (e.g., Las Vegas, Orlando). Expansion through acquisition of an existing, well-connected DMC helps overcome barriers including lack of destination familiarity, limited vendor relationships, etc.
Event type expansion: DMCs can consider expansion into adjacent large-scale event types such as tradeshows, conventions and sporting events. These events often require services that are highly addressable for DMCs (e.g., shuttle bus services, offsite activities).

Conclusion

Grant Thornton Stax has direct experience in the DMC space, supporting HIG with their recent acquisition of 360 Destination Group . In addition, Grant Thornton Stax has worked on multiple deals across the corporate events ecosystem and wider travel, tourism, and hospitality services sectors. To learn more about our experience, visit www.stax.com or click here to contact us directly.

The Advantage of Advanced Analytics: Power to Level Up Commercial Due Diligence

Thu, 17 Apr 2025 14:30:45 GMT

In Part 1 of this series, Asiri Silva and Iranga Mendis discuss the importance of advanced analytical approaches in driving insights during CDD engagements. Throughout this series, we’ll explore these concepts further, including example case studies and a look at the future trends reshaping the field.

In today's dynamic business landscape, commercial due diligence (CDD) has become increasingly complex, demanding more sophisticated analytics to ensure successful decision-making. Professional services firms are increasingly turning to advanced data analytics to gain better insights and provide more precise forecasting for strategic value creation. At Stax, our Advanced Analytics team leads this evolution — focusing on growth opportunities, consumer insights, and emerging trends. We deliver elevated value through comprehensive deliverables and identifying opportunities for future strategic value creation, empowering our clients to make more informed and impactful investment decisions. Our key specializations in CDD engagements include the following areas:

Uncovering Growth Opportunities with Whitespace Analysis: Our team excels at identifying untapped market opportunities and quantifying growth potential through whitespace analysis. Using geospatial and competitor analyses, we simulate customer buying patterns and decision criteria. Our predictive models and market optimization algorithms highlight pockets with favorable demand-supply imbalances, guiding our clients to develop a strong understanding of the potential for future markets, acquisition targets, or product expansion opportunities, enabling them to gauge potential future expansion opportunities.
Gaining Customer Insights via Advanced Analytics: Our CDD work leverages state-of-the-art customer analytics to assess the stability and growth potential of target companies. By combining methods like clustering techniques, predictive models, and sentiment analysis, we identify the most valuable customer segments, estimate lifetime value, and forecast future customer intent, ultimately assessing its impact on the business.
Identifying Price Optimization Opportunities: In CDD engagements, Stax performs pricing diagnostics on internal transactional data to identify opportunities for potential price optimizations and estimate their impact. Additionally, we model price elasticity through conjoint studies to uncover value creation opportunities post-close.
Forecasting Market Dynamics with Business Cycle Analysis: We use predictive analytics to model market uncertainty and understand its impact on business performance under various market scenarios—both upside and downside. These scenarios help our clients understand potential risks and factor them into the valuations.

Asiri Silva

Head of Data Science

Iranga Mendis

Manager

Asiri Silva

Head of Data Science

Iranga Mendis

Manager

Uncovering Growth Opportunities with Whitespace Analysis : Our team excels at identifying untapped market opportunities and quantifying growth potential through whitespace analysis. Using geospatial and competitor analyses, we simulate customer buying patterns and decision criteria. Our predictive models and market optimization algorithms highlight pockets with favorable demand-supply imbalances, guiding our clients to develop a strong understanding of the potential for future markets, acquisition targets, or product expansion opportunities, enabling them to gauge potential future expansion opportunities.
Gaining Customer Insights via Advanced Analytics: Our CDD work leverages state-of-the-art customer analytics to assess the stability and growth potential of target companies. By combining methods like clustering techniques, predictive models, and sentiment analysis, we identify the most valuable customer segments, estimate lifetime value, and forecast future customer intent, ultimately assessing its impact on the business.
Identifying Price Optimization Opportunities: In CDD engagements, Stax performs pricing diagnostics on internal transactional data to identify opportunities for potential price optimizations and estimate their impact. Additionally, we model price elasticity through conjoint studies to uncover value creation opportunities post-close.
Forecasting Market Dynamics with Business Cycle Analysis: We use predictive analytics to model market uncertainty and understand its impact on business performance under various market scenarios—both upside and downside. These scenarios help our clients understand potential risks and factor them into the valuations.

Emerging Trends in Data Analytics for Due Diligence

1. Data Generation: One Data Source isn't Enough

At Stax, we recognize the evolving role of advanced analytics in due diligence and are committed to expanding and optimizing our offerings while continuing to remain at the forefront of these developments. We’ve identified several key trends reshaping the analytics landscape:

AI and Machine Learning Integration: AI and machine learning are now central to data analytics in due diligence. These technologies enhance our ability to process and analyze large datasets, providing more accurate and actionable insights. For example, AI can identify patterns in customer data that predict future behaviors or reveal hidden opportunities in market data.
Greater Access to Data in Virtual Data Rooms (VDRs): There is a clear trend toward increased availability and richness of data during diligence processes. Moreover, investment banks are now more willing to collaborate with companies to provide granular data when needed, enhancing the depth and breadth of data available for analysis. This greater access to detailed information opens up new opportunities for Advanced Analytics teams to play a more prominent role in CDDs, enabling a more robust, data-driven assessment of the target than was previously possible.
The Rise of Alternative Data: Gone are the days when internal data, traditional secondary research and surveys were the only source of CDD. Now we frequently bring in alternative data sources like social media reviews, POI data, POS , or credit card transaction data, and mobile foot traffic data to our core workstreams, enabling a more comprehensive view into a target's strengths and weaknesses. We regularly test newer alternative data types and vendors for greater efficiencies.
Ethical Data Usage and Compliance: As data analytics becomes more pervasive, ethical considerations and regulatory compliance are gaining prominence. Consulting firms must ensure their data practices align with legal requirements and ethical standards, particularly concerning data privacy and consent.

Stax Advanced Analytics team is fully embracing the future of analytics to deliver even greater value in commercial due diligence. By integrating cutting-edge techniques, we're enhancing our existing services such as consumer insights and whitespace analysis while expanding into adjacent exploratory spaces to drive better client outcomes. As we continue to build our capabilities, we'll continue to offer deeper insights, more comprehensive strategic advice, and ultimately, greater success in our clients' deals. To learn more about Stax and our expertise, visit www.stax.com or click here to contact us directly.

Stax Advises Koozie Group with Sell-side Support During Acquisition by Garyline

Thu, 17 Apr 2025 13:10:48 GMT

Ben Bugg

EMEA Financial Sponsors Coverage

Grant Thornton Stax congratulates Koozie Group , a leading US-based manufacturer, decorator, and supplier of promotional products, on its recent acquisition by Garyline , a portfolio company of Mill Point Capital. Grant Thornton Stax provided sell-side support, collaborating with the management team of Koozie and their investment bank Baird.

Koozie Group is a leading force in the promotional products industry, known for designing and producing dependable products that help build lasting brand identities. With a diverse portfolio spanning over 40 brands and more than 10 product categories, the company features well-known names such as Koozie, KAPSTON, BIC, Souvenir, and Triumph, along with top-tier retail partners like Champion, JAM, Tervis, Titleist, and Leatherman.

Each year, Koozie Group launches more than 100 new products, the majority of which reflect the company’s strong focus on sustainability. Their innovation is underpinned by a commitment to product safety, social and environmental responsibility, and secure supply chain practices—setting a high standard within the industry.

Contact the Grant Thornton Stax team:

Insights Related to TransAtlantic Growth:

Paul Edwards

Global Practice Leader

Roy Lockhart

Partner

Stax Featured by PE Hub: Monogram leverages popularity of youth sports in Vasco deal

Wed, 16 Apr 2025 17:06:45 GMT

Robert Lytle

Senior Managing Director

This article was originally featured by PE Hub and was written by Rafael Canton .

Good morning, Hubsters! Rafael Canton back with the US edition of the Wire from the New York newsroom.

To kick it off, we’ll start with a look at Monogram Capital Partners, which saw an opportunity to invest in a business adjacent to youth sports with the acquisition of The Vasco Group. The deal was announced earlier this morning, PE Hub was first to report.

Next, we’ll go further into sports with a look at some recent deals in youth and community sports from firms such as KKR and Bluestone Equity Partners.

Then, Butterfly Equity has morphed a multi-asset continuation vehicle into a single-asset process for fast-casual Mexican food chain, QDOBA, four sources familiar with the transaction tell affiliate title, Secondaries Investor.

Finally, we’ll dive into the HR Tech sector with some recent deals and a report on human capital management technology from Harris Williams.

Investing Sweetspot

Earlier this morning, PE Hub was first to report that Monogram Capital Partners has acquired a majority equity stake in the Vasco Group.

Headquartered in Massillon, Ohio, Vasco is an asphalt, paving, repair and maintenance business that specializes in surfaces for sports, such as tennis courts, football fields and running tracks. Its customers include K-12 schools, municipalities, universities, professional sports teams and multifamily residential customers.

Vasco is composed of three companies, Vasco Asphalt & Concrete, Vasco Sports Contractors and Nidy Sports Construction. Founded in 1967, about 85 percent of the company’s overall business is focused on specialized sports surface work; 15 percent is steered toward commercial paving. Vasco’s business primarily operates in the Ohio and Florida markets. The company is expanding in West Virginia, Philadelphia and the Carolinas.

Jared Stein, co-founder and partner of Monogram, said Vasco hits Monogram’s investing sweet spot where it’s technical enough that there’s real know-how to the business, but it’s not too technical where the certification or other administrative parts of the job make it impossible to scale labor significantly or quickly.

“We had also been looking at youth sports as a major growth area,” Stein added. “It has high single-digit growth all driven by higher participation rates from kids across the country. A lot of where we had looked is in the organized leagues or in even some of the other segments serving that market and the valuations have been pretty prohibitive. Ultimately, this was a unique, secondary way to get exposure to that tailwind against this backdrop of specialized facility services.”

There’s potential for both growth organically as well as add-on deals for Vasco. “There’s still quite a bit of territory even just within the states, let alone adjacencies that Vasco keeps getting pulled into again just because of its reputation and service levels,” Stein said. “There’s a ton of organic tailwinds, or greenfield tailwinds, which is essentially Vasco setting up an adjacent satellite and growing into servicing a market that’s currently outside of the radius but near.”

In 2007, Vasco acquired Nidy. Monogram views that acquisition as the prototype for what it can do in M&A with Vasco. Monogram expects to do one large, transformative add-on deal plus two or more smaller ones each year. Monogram is looking to buy core businesses that expand Vasco geographically, give the company a head-start in a new market or extend its technical capabilities.

Read on for an example of what an add-on deal would be for the firm and its investing interests in the consumer sector.

Community Sports

Stein’s insight speaks to private equity’s interest in youth and non-professional sports. Community sports participation has grown post-covid according to a 2024 report from global strategy consulting firm, Stax. The number of amateur sports clubs in the US has grown from 57,000 in 2020 to over 78,000 in 2023, with total revenue growing by 65 percent over the same period from $11.3 billion to $18.7 billion. There have been a few deals over the past year in the subsector that have stood out.

In November, Bluestone Equity Partners made an investment in Volo Sports . The company is a provider of social and recreational sports events.
In October, Accel-KKR took a majority stake in LeagueApps.
Also announced in the deal was Arctos Partners taking a minority stake in LeagueApps. In August, KKR closed its acquisition of Varsity Brands , a US-based sports uniform and memorabilia provider.

Restaurant process

What was once understood to be a multi-asset continuation vehicle from Butterfly Equity has morphed into a single-asset process for a fast-casual Mexican food chain, reports affiliate title Secondaries Investor’s Silas Sloan, Hannah Zhang and Madeleine Farman.

The Los Angeles-headquartered food sector-focused private equity firm is running a process to move QDOBA into a new vehicle, according to four sources familiar with the transaction. The process was originally worth $1 billion and involved QDOBA and Generous Brands. Butterfly acquired QDOBA from Apollo.

In 2024, I reported on Bolthouse Farms being split into two separate entities – Bolthouse Fresh Foods and Generous Brands. Generous Brands was a beverage and salad dressing business under Bolthouse Farms and Evolution Fresh. Bolthouse acquired Evolution Fresh in an add-on deal from Starbucks in August 2022.

Adam Waglay, co-founder and co-CEO of Butterfly, told PE Hub at the time that both businesses “will end up going to different investors at some point in time and at different values.”

The size of the now single-asset process is unclear. Evercore is understood to be advising on the process, according to two sources. Butterfly and Evercore did not respond to requests for comment.

Enhancing employee experience

Employers leveraging data analytics and digital assessments in the talent acquisition process is one of the trends in human capital management technology according to a report from Harris Williams. Another reason for dealmaking in the sector is employers looking to enhance the employee experience. This is with the objective being to grow employee engagement and retention.

PE Hub has covered the role technology has in the HR sector significantly. Recently, reporter Irien Joseph highlighted how advancements in AI, payroll automation and the digitization of employee benefits, have led to increased M&A interest in the HR tech sector.

And we’ve also seen a steady stream of deals. In February, KKR acquired a stake in Employment Hero, an Australian provider of employment management solutions, from Seek Investments. In January, Apax Partners sold its majority stake in Paycor HCM to Paychex for $4.1 billion. Paycor is a human capital management software business.

In November, EQT acquired PageUp, a global SaaS talent acquisition, recruitment marketing and talent management software provider, from Battery Ventures.

That’s it for me. If you have any questions, thoughts, or want to chat about deals in the tech, consumer or sports sectors, please email me at rafael.c@pei.group.

Tomorrow, Nina Lindholm will be with you for the Europe edition of the Wire and Michael Schoeck will bring you the US edition.

Cheers,

Rafael

How Leading Teams Are Growing Through Disruption

Wed, 16 Apr 2025 15:50:36 GMT

Peter Rodrigues-Renon

Managing Director, EMEA Value Creation

Management teams have operated in a generally benign environment: Stable trade flows, low inflation, cheap debt, predictable monetary policy and globally optimized supply chains. Notwithstanding global shock events, leadership teams have focused on optimizing for efficiency not volatility. That world is gone. With resurgence of politically motivated tariffs , unpredictable in scope, scale, and timing is destabilizing global trade. Simultaneously, the headwinds of rising interest rates, FX volatility, energy costs, and supply chain shocks are exposing operational fragility.

Most leadership teams lack "experience" or tested playbooks for this kind of systemic dislocation. But this moment is more than a defensive challenge: The greatest failure will be missing the window to reposition, lead, and capture growth while your competitors hesitate.

How can management teams transform this inflection point into a platform for value creation? By building the capabilities to absorb shocks and move faster than dislocated markets to drive growth.

Peter Rodrigue s-Renon

Managing Director, EMEA Value Creation

"Volatility isn’t just a risk, it’s the opportunity to gain advantage while others hesitate."

Winning teams will treat tariff and macro volatility as a strategic accelerator , not merely a risk to manage. Seizing this opportunity requires a dual response: leveraging the volatility and bridging a capability gap:

Leverage volatility for growth:

Make bold strategic moves: Redefine your right to win by rethinking footprint, partnerships, or product strategy to break through uncertainty.
Acquire stranded share: Move where slower competitors struggle with inertia and cannot adapt to pricing or supply.
Expand into geographies or categories: Target areas that have become newly compelling amid disruption.
Respond to shifting demand : Reconsider customer segments and implement dynamic pricing to stay ahead of demand-side shifts.

Mitigate the capability gap:

Tighten the balance sheet: Refocus capital deployment to support new objectives, create balance sheet insulation and a war chest to deploy rapidly to exploit opportunity.
Strengthen financial infrastructure: Enhance treasury sophistication and build liquidity buffers to manage FX and capital volatility.
Offset input cost pressure: Conduct margin stress tests and diversify supply chains to reduce vulnerability.
Build resilience into the investment equity narrative: Portfolio company leadership and their financial sponsors should reframe growth aspirations. The targets should remain however the governance frameworks guiding decisions should be recalibrated.

The Next Frontier in STR Software: High-Growth Opportunities for Investors

Mon, 14 Apr 2025 13:10:01 GMT

Andrew Keller

Managing Director

The short-term rental (STR) software market is entering a dynamic era of growth. Post-pandemic demand recovery, demographic tailwinds, and rising regulatory complexity are current factors driving market expansion. Travelers' preference for domestic and drive-to destinations fuels demand, while aging populations in North America and Europe stabilize supply, creating tailored investment opportunities. Simultaneously, growing demand for operational efficiency and compliance is accelerating the adoption of software solutions across core property management and adjacent solution spaces. For investors, these dynamics present strong opportunities to back scalable platforms that streamline STR complexity, unlock new revenue streams, and capture an underserved yet fast-growing market.

Market Overview

The steady growth of listings demonstrates resilience across North America & Europe, supported by structural and year-round demand dynamics. With Gross Booking Value (GBV) forecasted to grow at ~5% per annum in North America & Europe between 2024-28, investors who leverage STR software solutions are poised to gain early-mover advantages in markets experiencing heightened competition and regulatory pressure.

Andrew Keller

Managing Director

In the past year, major investment rounds in STR software companies like Guesty ($130M) and Hostaway ($365M) have put a spotlight on a market that is not only growing but evolving into a cornerstone of the vacation rental ecosystem. Both Guesty and Hostaway are emerging market leaders in an industry with a long tail of other competitors — a key question for potential investors is whether other STR PMS providers are also interesting investment opportunities.

Ancillary Opportunities

Whether or not viable private equity investment opportunities exist in core STR PMS beyond Hostaway and Guest, there are ancillary opportunities across a broad range of services. These include insurance solutions tailored for STR operators, dynamic pricing tools to optimize revenue, digital guidebooks to elevate guest experiences, trust accounting to simplify financial management, and integrations with smart locks, cleaning services, and maintenance solutions. Grant Thornton Stax sees substantial opportunity in ancillary areas, where scalability and first-mover advantages are poised to drive the next wave of growth.

Dynamic Pricing:

Dynamic pricing tools are essential for optimizing STR profitability, leveraging real-time data like occupancy trends and competitor pricing. Despite their potential to boost revenue, adoption remains low among smaller operators, who perceive these tools as overly complex. This gap creates a high-margin opportunity for investors to back intuitive, scalable platforms like PriceLabs or Beyond.

Insurance:

The STR market’s unique risks, spanning liability claims, property damage, and regulatory compliance, have outgrown traditional insurance models. While platforms like Airbnb offer host protection programs, these often have gaps in coverage, leaving operators exposed.

Local insurers offer alternatives but often struggle to keep up with evolving regulations. Purpose-built InsurTech solutions fill this gap by offering tailored coverage that aligns with emerging compliance requirements, though they do not replace the need for adherence to local laws.

Regulatory scrutiny is tightening across key markets: France enforces strict rental caps and registration mandates, Italy requires digital tax reporting, and cities like New York and Vancouver impose stringent permitting rules. As regulations fragment across regions, InsurTech providers that integrate compliance tools alongside coverage stand to capture growing demand from STR operators navigating this complex landscape.

Cleaning and Maintenance:

Cleaning and maintenance software is redefining operational efficiency in STR management. With turnover efficiencies driving better guest retention, scalable tools like Breezeway or Properly could unlock ancillary revenue streams for investors through third-party partnerships. For instance, Breezeway's platform allows property managers to create customized checklists and automate task assignments, ensuring consistency and accountability in cleaning and maintenance operations.

Similarly, Properly integrates with Airbnb and VRBO to streamline cleaning workflows and provide real-time updates on task completion, which has been shown to significantly improve guest satisfaction. These features address property managers’ core operational pain points while unlocking new revenue streams through partnerships with third-party providers, such as cleaning services and repair specialists.

Digital Guidebooks:

Digital guidebooks give the opportunity to enhance a STR guest’s experience by delivering curated, on-demand property and local information, reducing reliance on host involvement. Integrated into PMS platforms, these tools offer unmatched scalability for property managers overseeing diverse portfolios.

Smart Locks:

Smart locks are revolutionizing STR operations by combining secure, automated guest access with seamless integrations into PMS platforms. From streamlining check-ins to enhancing property security with real-time access logs, these tools solve critical pain points for property managers. Companies integrating security solutions into PMS platforms are well-positioned to capture enterprise-level clients, boosting scalability and recurring revenues.

Conclusion

The STR software market offers a high-growth opportunity, but investors must prioritize companies that not only are prominent in the STR market today, but those who are positioned to lead the next wave of innovation. For private equity firms ready to explore these opportunities, Stax’s deep expertise in STR software can guide you to the highest-yield investments. Visit www.stax.com or click here to contact us directly to learn how we can help maximize your returns in this rapidly evolving market.

Featured by Life Risk News: Are Recent Asset Manager-Owned Life Insurance Consolidator Divestments a Sign of Waning Interest?

Thu, 10 Apr 2025 18:21:31 GMT

Robert Lytle

Senior Managing Director

In this recent article, originally written by Greg Winterton for Life Risk News , several experts weigh in on why recent exits by top asset managers aren't necessarily marking a retreat from the life insurance consolidator market, but, rather, are acting as a signifier of imminent and explosive growth in the space. However, despite this strong indication, investments are now becoming more strategic than ever before.

Partner Robert Lytle was asked to weigh in on two recent transactions: Blackstones sale of Resolution Life to Japanese insurance giant Nippon Life, and Cinven's sale of Viridium Group, a German life insurance consolidator, to a consortium comprising Allianz, BlackRock, T&D Holdings, Hannover Re and Generali Financial Holdings:

"Both the consolidator and distribution markets have been in consolidation for many years – driven primarily by a few platform investments by mega-cap funds. These two examples are two of the larger ones. These are very large assets, and they are now typically too large even for mega-cap PE to do solo.”

-Robert Lytle, Partner

Robert Ly tle

Partner

Stax Provides Sell-side Support to Command Investigations on its Acquisition by Incline Equity Partners

Wed, 09 Apr 2025 18:43:56 GMT

Grant Thornton Stax congratulates Command Investigations , a national provider of insurance investigation services, on its recent acquisition by Incline Equity Partners . Grant Thornton Stax provided sell-side support, collaborating with the management team of Command Investigations and their investment bank Lincoln International.

Command Investigations is a leading private investigation firm specializing in a broad range of services for the insurance defense sector. Its offerings include surveillance, background checks, medical canvassing, social media analysis, field investigations, and SIU support. Renowned for its exceptional client service and deep industry expertise, Command delivers tailored investigative and compliance solutions. The company supports the ongoing risk mitigation needs of a diverse client base, including insurance providers, TPAs, legal firms, government agencies, and other investigative organizations.

Contact the Grant Thornton Stax team to learn more:

Paul Edwards

Global Practice Leader

Roy Lockhart

Partner

W ill Barden

Will Barden

Partner

Tyler Veit

Partner

About Grant Thornton Stax

Anantha Natalegawa Honored as a 2025 Rising Star by Consulting Magazine

Mon, 07 Apr 2025 13:05:09 GMT

Anantha Natalegawa

Associate Director

Manager

Anantha Natalegawa

Associate Director

Anantha Natalegawa, Associate Director at Grant Thornton Stax, has been recognized by Consulting Magazine as one of the 2025 Rising Stars of the Profession for his excellence in client service within the Retail sector. A trusted advisor on both buy- and sell-side engagements, Anantha leads over 20 projects annually, helping private equity clients and their portfolio companies unlock growth. His deep expertise spans the consumer and government markets, with a strong command of procurement processes and selection criteria critical to influencing key decision-makers.

Along with his nomination, Anantha was asked several questions by Consulting Magazine—these are his responses:

1. What would you say has been the biggest factor in your success so far?

It's difficult to pinpoint a single factor, as my success has been shaped by a combination of several circumstances:

Grant Thornton Stax’s Culture : The company fosters an environment where individuals are encouraged to step out of their comfort zones and take on new challenges. This is supported by a strong framework that ensures the necessary guidance and safety net for personal and professional growth.
Intentional Mentorship : Both through Grant Thornton Stax’s formal mentorship program and direct project-based exposure to senior colleagues, I’ve benefited from targeted, meaningful mentorship. This guidance goes beyond improving immediate deliverables—it reflects a broader commitment to fostering long-term success and contributing to the firm’s growth.
Family Support : A foundational element in my journey has been a supportive family that keeps me grounded, providing the balance and clarity to focus on long-term priorities and goals.

The interplay of these factors—a nurturing work culture, impactful mentorship, and a strong personal foundation—has been instrumental in shaping my development and achievements so far.

2. What do you enjoy most about your career in the consulting industry?

When I was considering my next steps after graduate school, I intentionally sought out Grant Thornton Stax for its focus on commercial due diligence (CDD) and private equity as a market. What interested me at the time remains what I enjoy most about my work today—the consistent exposure to diverse business models, industries, and the unique complexities they face. I enjoy the challenge of leveraging pattern recognition to distill targeted investment recommendations from vast amounts of both structured and unstructured data.

And, of course, the classic consulting answer: the people. It’s easy to lose sight of it over time, but I’m grateful to be surrounded by similarly driven and talented colleagues who are a constant source of energy and motivation.

3. What is your proudest achievement to date?

It’s difficult to tease out a specific project or engagement over the years, so I gravitate towards reflecting on my broader impact at the firm. Just as I’ve benefited from direct mentorship by senior colleagues, I’ve made it a priority to stay actively involved in the development of our next generation of leaders at Grant Thornton Stax.

Whether working with a junior colleague on a project, or mentoring someone formally, I find it immensely rewarding to contribute, even in a small way, to their growth and upward trajectory – both within Stax and in their careers overall.

4. What's the best advice you've ever been given?

"Don’t undervalue the importance of a pause to reflect," a principle that applies on multiple levels:

On the micro level :

During a project, it means resisting the instinct to immediately fill the silence after a client’s question or prompt. Instead, consciously take a moment to understand their motivation—the "why" behind the "what."

On the macro level :

Across projects, finding the time to take a beat at the conclusion of an engagement to intentionally ask, “What have I learned, and how should this inform my approach to future projects and my continued development more broadly?”

5. What would this recognition mean to you?

I’m deeply appreciative of this recognition. As mentioned earlier, it’s easy to overlook personal growth and hesitate to celebrate milestones, in favor of immediately turning the page to think about “what’s next.” This nomination serves as a helpful reminder of the importance of pausing occasionally to reflect on and appreciate the progress made along the way.

Unpacking the Tariff Shock: What You Need to Know Now

Fri, 04 Apr 2025 17:19:43 GMT

Anuj A. Shah

Partner, ESG & Impact Advisory

Summary & Current Environment:

The past 40 hours have provided time to digest the unprecedented tariff actions, which have pushed the effective US tariff rate to 25%, the highest level since 1904.

Immediate market reactions have been significant: interest rates on Treasurys are dropping, credit spreads widening, and inflation concerns rising sharply. The result is an increased likelihood of a stagflationary environment.

Despite some predictions of imminent rate cuts, such actions seem unlikely in the near term. Additionally, the US dollar has weakened, and commodities, notably Brent crude oil, have fallen sharply, nearly 14%, since the tariffs were announced, reflecting the market pricing in an increased likelihood of a recession.

Anuj A. Shah

Partner, ESG & Impact Advisory

Analysis of Tariff Approach & International Response:

The new "reciprocal" tariffs announced by the administration were unexpectedly high and applied haphazardly, including to small, developing nations and even uninhabited territories. This reinforces longstanding concerns about the administration’s grasp of nuance and the broader implications of such policies.

Consequently, international partners perceive these tariffs as punitive rather than strategic opening positions for negotiation. These actions reinforce the broader trend toward de-globalization as countries increasingly resort to protectionist measures.

China's immediate and robust response, a 34% tariff on select US goods, export curbs on rare earth minerals, import suspensions, and the categorization of certain US firms as "unreliable entities," sets the stage for prolonged tensions. Simultaneously, other nations are coordinating retaliatory tariffs and strategically shifting trade relationships away from the US, as they perceive America to be an unreliable trade partner.

Forward-looking Impact on Global Trade & M&A Activity:

Given the heightened uncertainty, we anticipate a short-term slowdown in global M&A activity as companies pause to assess the evolving trade environment. Deal-making will likely resume once a clearer "tariff equilibrium" emerges, though recovery will vary significantly by region and sector.

For private equity firms and their portfolio companies, the implications are multifaceted . Increased operational costs due to tariffs can erode profit margins, particularly in sectors with complex international supply chains, potentially leading to lower valuations and extended due diligence processes. Industrials will likely face considerable margin pressures from higher raw material and component costs. Consumer goods sectors may experience reduced demand due to higher prices passed on to customers. Conversely, sectors such as healthcare , business services , software (less impacted) and IT hardware (likely impacted), and events , generally less exposed to tariffs on physical goods, may present more resilient investment opportunities (although there are ongoing impacts to healthcare from cuts in government spending).

PE firms should strategically assess portfolio vulnerabilities, consider nearshoring to reduce risks, and enhance operational efficiencies to mitigate potential impacts.

As the global trade environment continues to shift, staying informed and proactive will be critical. Our team remains available to support clients navigating these challenges, whether through strategic risk assessments, sector-specific insights, or tailored guidance. If you are evaluating potential exposures or considering how these dynamics might impact your investment or business strategy, we welcome a conversation.

Source: Goldman Sachs Investment Research, United States International Trade Commission, J.P. Morgan Asset Management. For illustrative purposes only. The estimated weighted average US tariff rate includes the latest tariff announcements, even if they are not fully in effect yet. Estimates about which goods are USMCA compliant come from Goldman Sachs Investment Research. Imports for consumption: goods brought into a country for direct use or sale in the domestic market. Figures are based on 2024 import levels and assume no change in demand due to tariff increases. Forecasts are based on current data and assumptions about future economic conditions. Actual results may differ materially due to changes in economic, market, and other conditions. Data are as of April 2, 2025.

Featured by Power Magazine: China Coal-Fired Generation Additions Tied to Economics, Energy Security

Thu, 03 Apr 2025 18:44:03 GMT

China’s coal industry is experiencing a resurgence, even as the country makes historic investments in renewable energy . In 2024, China built more new coal capacity than the rest of the world combined, reflecting the deep-rooted economic and political forces that continue to shape its energy sector. Despite pledging to reduce coal reliance over time, economic and industrial pressures continue to drive new coal plant approvals. With energy demand soaring, China faces the challenge of balancing economic growth with its long-term decarbonization commitments.

In Power Magazine's recent article, Brad Kuntz, Senior Managing Director, discussed how China's ongoing need for energy and reliance on coal has pioneered a shift towards renewables.

"China’s energy output has doubled since 2011, driven primarily by ongoing industrialization. This growth contrasts with major economies like Japan, Germany, and the U.S., where energy output has remained flat or declined over the same period."

"To meet its baseline energy needs, China has continued expanding coal-powered plants, making it difficult to envision such a significant increase in output without coal as a key source."

"However, China is gradually shifting away from coal, reducing its share from 79% to 63% of total output since 2011, while simultaneously increasing its reliance on renewables, which have grown from 17% to 29% over the same period.”

-Brad Kuntz, Partner, Industrials

"China’s energy output has doubled since 2011, driven primarily by ongoing industrialization. This growth contrasts with major economies like Japan, Germany, and the U.S., where energy output has remained flat or declined over the same period."

"To meet its baseline energy needs, China has continued expanding coal-powered plants, making it difficult to envision such a significant increase in output without coal as a key source."

"However, China is gradually shifting away from coal, reducing its share from 79% to 63% of total output since 2011, while simultaneously increasing its reliance on renewables, which have grown from 17% to 29% over the same period.”

-Brad Kuntz, Senior Managing Director, Industrials

Featured by Termgrid: Healthcare M&A: The role of aging patients and maturing investments

Thu, 03 Apr 2025 15:23:13 GMT

Despite political and economic uncertainties, healthcare remains a lucrative investment space. However, growing concerns around government spending cuts on Medicare, Medicaid, and medical research could impact investment flows. Additionally, tariffs and high interest rates may influence deal valuations and financing conditions. Despite these risks, experts believe healthcare's fundamental value proposition—driven by necessity and innovation—will keep it attractive to investors in the long run.

Rob Larson was interviewed by Termgrid and shared his thoughts on the role and value of tech-enabled services, as well as some thoughts on the overall state of the market.

"We have seen AI show up in tech-enabled services such as imaging/radiology and in helping data companies pull insights out of unstructured data such as physician notes and discussions. Increasingly, it’s expected to play a bigger role in other tech-enabled services such as revenue cycle management and other business process automation."

- Rob Larson, Managing Director, Healthcare

"We have seen AI show up in tech-enabled services such as imaging/radiology and in helping data companies pull insights out of unstructured data such as physician notes and discussions. Increasingly, it’s expected to play a bigger role in other tech-enabled services such as revenue cycle management and other business process automation."

- Rob Larson, Managing Director, Healthcare

Navigating the Future of Professional Education and Training

Wed, 02 Apr 2025 14:55:55 GMT

Tyler Veit

Partner

Kate Philbrick

Manager

The professional education and training market continues to attract investor interest, driven by a large and growing market opportunity and potential to scale within a fragmented provider landscape.

At Grant Thornton Stax, we are seeing growing demand for professional education, driven by persistent skill shortages, evolving industry regulations, and the need for credential maintenance. According to ManpowerGroup's 2024 Employment Outlook Survey of over 40,000 employers across 41 countries, 75% of companies globally report talent shortages—underscoring the criticality of ongoing education in workforce readiness.

Grant Thornton Stax has decades of experience evaluating providers of qualifying and continuing education as well as ongoing professional development. From these experiences, we have observed key investment trends and considerations to help navigate the current market landscape.

Key Drivers of Growth in Professional Education

1. Inflow of Individuals into the Job Market:

Approximately 25% of the workforce holds a certification or license, with many fields, such as healthcare and law, requiring professionals to have a license in order to practice.
As more individuals enter these professions, demand for both qualifying education and continuing education will increase.
Professional education for employees without licenses will also benefit, as 76% of employees are more likely to stay with a company that offers ongoing training.

2. Address Employee Skill Gaps:

There is a persisting gap between employer expectations and employee skills, driving the need for employers to offer additional education.
An ongoing shortage of skilled labor is further expanding employer interest in offering continuing education programs in order to upskill employees.

3. Stand Out in the Job Market:

Emerging technologies and changes in the workplace are driving the need for continuous learning.
Job seekers are increasingly viewing certifications as ways to demonstrate to potential employers that they are up-to-date with the latest advancements in the industry.

Tyler Veit

Partner

Kate Philbrick

Manager

Industry Structure: The Lifecycle of Professional Education

Professional education follows a structured career lifecycle , encompassing:

Pre-Licensing Education: Training programs required before obtaining a professional license.
Licensing Exams: National and state-specific exams required for professional certification.
Post-Licensing & Continuing Education (CE): Ongoing learning to maintain licensure and compliance with industry regulations, as well as upskill employees who do not hold licenses.

The purchasing model for these programs varies between Qualifying Education (QE) and Continuing Education (CE). QE is primarily B2C, purchased directly by professionals. CE is a mix of B2B and B2C , with some employers covering costs for compliance training.

Competitive Landscape: A Fragmented Market

The professional education sector is highly fragmented , with key players spanning:

Traditional Educational Institutions: Universities and vocational schools offering professional degrees and certifications.
Online Education Platforms: EdTech and e-learning providers catering to working professionals with flexible, scalable solutions.
Professional Development & Training Providers: Industry-specific certification providers and corporate training firms.

Investment Considerations in Professional Education

For investors evaluating education providers, understanding market dynamics and scalability is critical . Stax’s research highlights several key areas for investment evaluation:

Market Position & Differentiation: What is the target company’s competitive edge in a fragmented market? Is it aligned with end-markets that are expected to have favorable inflow/outflows of employees in the future?
Scalability & Expansion Potential: Can the provider expand geographically or diversify into adjacent professional sectors?
Regulatory Compliance & Industry Trends: How well does the provider align with licensing requirements and emerging trends like skills-based hiring?
Technology & Content Delivery: Does the provider leverage adaptive learning and digital platforms to enhance engagement?

As demand for professional education grows, investors have opportunities to build scalable platforms, consolidate fragmented providers, and leverage technology to drive competitive differentiation. With a long-term outlook shaped by an evolving workforce, the professional education sector presents attractive investment opportunities for growth. To learn more about Stax and our expertise, visit www.stax.com or click here to contact us directly.

Featured by International Policy Digest: Unpacking U.S. Reciprocal Tariffs and Private Equity Strategies

Tue, 01 Apr 2025 19:32:18 GMT

Brad Kuntz

Partner

Joel Slater

Managing Director

This article was originally featured by "International Policy Digest" and was written Scott Douglas Jacobsen .

Brad Kuntz of Grant Thornton Stax, a global strategy consulting firm, unpacks the far-reaching consequences of U.S. reciprocal tariffs on private equity strategy, consumer prices, and global supply chains.

As tariffs introduce fresh waves of cost volatility, firms are increasingly pivoting toward nearshoring and building more resilient supply networks. While the 2018 tariffs spurred a modest uptick in U.S. steel production, those gains were offset by broader job losses in steel-consuming industries.

In an inflationary environment, companies may be able to preserve pricing power—but they’re also undergoing a strategic shift. The old playbook of cost optimization is giving way to risk optimization, with flexibility and adaptability now prized over raw cost savings. Although prolonged tariffs risk unsettling trade flows and market stability, forward-looking firms are countering that threat with investments in automation and supplier diversification—hedging against disruption while laying the groundwork for long-term growth.

Scott Douglas Jacobsen: How will U.S. reciprocal tariffs impact large-cap private equity strategies?

Brad Kuntz: Tariffs create short-term cost volatility and supply chain risks, forcing investors to rethink global sourcing strategies. For instance, U.S. soybean exports to China dropped 40% due to retaliatory tariffs, requiring a $28 billion government bailout for farmers.

Industries with global dependencies face pressure, while domestic-facing industries may benefit. A prime example: U.S. steel production increased ~6% in 2018-2019 after tariffs, but higher input costs led to more job losses in steel-consuming industries than gains in steel production.

Large-cap private equity strategies are unlikely to experience major disruption from reciprocal tariffs in the near term, private equity firms may encourage portfolio companies to take a long-term view and de-risk supply chains by nearshoring procurement of raw materials and finished goods.

Jacobsen: How will consumer prices influence investment decisions and valuations?

Kuntz: Tariffs on key imports lead to higher input costs, which ripple through pricing strategies and, ultimately, consumer demand. For example, after the 2018 U.S. steel tariffs, steel prices surged ~50%, significantly raising costs for auto, construction, and manufacturing sectors.

Companies that can pass costs on without losing market share will be better positioned, while those in highly competitive or price-sensitive markets will see margin compression.

In some cases, firms may benefit from inflationary price increases by maintaining pricing power and leveraging tariff-driven cost adjustments to push through higher pricing.

Brad Kuntz

Partner

Joel Slater

Managing Director

Jacobsen: How will supply chain strategies shift in response to reciprocal tariffs?

Kuntz: Companies will shift from cost-optimized supply chains to risk-optimized/resilient models, prioritizing domestic diversification and strategic nearshoring.

The trend of moving production out of China toward Southeast Asia, Mexico, and India will accelerate, while firms in critical industries may invest in domestic manufacturing despite higher costs. Following the 2018 tariffs, U.S. imports from Vietnam grew 35%, as companies sought alternatives to China to hedge against trade uncertainty.

In a high-tariff environment, cost predictability is more important than cost reduction, meaning companies prioritize flexibility and pricing stability over finding the lowest-cost supplier. Some firms may find pricing power opportunities in inflationary conditions that allow them to pass costs through and preserve or even improve margins.

Jacobsen: Will reciprocal tariffs hinder innovation in the industrial sector?

Kuntz: Reciprocal tariffs disrupt supply chains, forcing producers in both countries to seek new upstream suppliers and raw material sources. While disruptive, tariffs could also lead to innovation in cost sustainability, production efficiency, and supplier diversification.

Jacobsen: What are the long-term consequences of sustained rather than short-term reciprocal tariffs, particularly on economic growth and market stability?

Kuntz: Sustained tariffs lead to persistent pricing volatility, inflationary pressures, and modest increases in domestic production. Industries with strong domestic infrastructure may benefit from higher pricing power, but supply chain flexibility will remain challenging for sectors reliant on global trade.

Jacobsen: How can businesses balance immediate cost pressures against longer-term growth?

Kuntz: Companies should balance short-term margin protection with strategic investment in areas that bolster long-term protection (e.g., automation, supplier diversification, etc.). Businesses must proactively assess supply chain options to improve price predictability rather than wait for tariff policy changes. Well-positioned firms may be able to take advantage of inflationary price increases if they have strong market positioning.

Jacobsen: Thank you for the opportunity and your time, Brad.

Featured by Chief Investment Officer: With Slower Private Equity Exits, Secondaries Transactions Tick Up

Tue, 01 Apr 2025 17:25:49 GMT

Robert Lytle

Partner

This article was originally featured by Chief Investment Officer and was written by Matt Toldeo.

Secondaries volume and pricing increases create an attractive avenue to liquidity for limited partners.

It is no secret that private equity firms are holding onto their portfolio companies for longer. Vintages are getting older, dry powder is stockpiling, and, as a result, an asset class known for illiquidity is becoming more and more liquid.

Transactions on the secondary market, meanwhile, have never been higher, reaching more than $150 billion in 2024, according to data from Preqin.

“We think that backlog is bigger in value count and as a share of total portfolio companies than at any point in the last two decades, and wide swaths of the economy are waiting to get sold,” says Alexander Edlich, a senior partner in consultancy McKinsey & Co.

Rober t Lytle

Partner

McKinsey sizes that backlog at roughly $162 billion, as of 2024, increasing nearly 45% from 2023.

“LPs are tapping into alternative capital sources and leveraging innovative fund structures to address liquidity needs,” Edlich says, “You have a lot of LPs that are waiting for their distribution, and you’ve got a lot of GPs who are waiting to crystalize their investments that they’ve held. … Some LPs can’t wait any longer.”

While some investors expected exits and M&A activity to pick up in 2025, they still seem to be on the sidelines, possibly leading to additional volume available on the secondaries market.

“A lot of people came in thinking 2025 was going to be a strong year, [but we are] hearing a lot of people holding on processes, given financial turbulence, and certainly the uptick in interest rates didn’t help,” says Robert Lytle , a senior managing director at management consulting firm Grant Thornton Stax.

Secondary-Market Pricing

Secondaries prices, as a percentage of net asset value, 2024 than previous highs in 2017 and 2021, but they are trending upwards from a low in 2022. For LPs, pricing is getting better, according to a report from Commonfund .

Across an average of all alternative asset classes on the secondary market, transactions were priced at 89% of NAV at the end of 2024. For traditional buyouts, that figure was 94%, up from as low as about 85% in 2022, Commonfund’s data showed.

Venture and growth equity investments are still being priced at about 75% of net asset value. Real estate pricing on the secondary market has barely recovered at all from a 2022 bottom.

Secondary Pricing as a Percentage of NAV (by asset class)

Martin Gross, president and founder of Sandalwood Securities, says LPs should actively engage with their managers if distributions fall short.

“LPs should not be afraid to question their managers if distributions are not meeting expectations,” Gross says. “If they are going to tap the secondaries markets to access liquidity, [LPs] should make sure that terms are very clear. Now is certainly one of those phases whe[n] solid work around due diligence, of both managers and fund structures, can play a major role in securing better outcomes.”

New Secondaries Markets Emerge

Increasingly, those outcomes are being achieved through secondary transactions, even without a significant formal structure to support them.

“While we believe that we are still years away from an efficient secondary market brokered through an exchange, the continuously increasing volume and dedicated capital flowing into secondaries is allowing for better portfolio management and greater access to liquidity,” according to the Commonfund report. “Private equity is no longer a buy and hold strategy.”

Some asset owners are turning to emerging secondary market exchanges. Accredited and institutional investors can buy shares of large, primarily venture capital-backed companies on , an online marketplace for trading private shares and secondaries, which is seeing increased interest and use from asset owners, says Rodolfo Sanchez, its director of data sales.

So much so that the company started its own fund, just for secondaries transactions.

“A lot of these companies are staying private longer, they’re just not going to go public—some of them will never go public,” Sanchez says.

Crossing the Atlantic: How Can UK PE-Backed Horizontal SaaS Firms Maximize Growth and Exits?

Thu, 27 Mar 2025 18:33:57 GMT

Ben Bugg

EMEA Financial Sponsors Coverage

Andrew Keller

Managing Director

In today’s rapidly evolving Horizontal SaaS landscape, UK-based Private Equity (PE) investors are finding that domestic and European markets may not fully maximize the valuation potential of their portfolio companies. As we enter Q1 2025, the question arises: Are you settling for moderate growth in Europe when you could capture higher multiples, stronger margins, and faster innovation by expanding into—or exiting through—the US market?

The numbers speak volumes: the United States consistently commands higher EV multiples and exhibits stronger growth rates across numerous Horizontal SaaS subsectors, from cybersecurity software to project management tools. But extracting that value requires a precise strategy and the right partner with deep transatlantic expertise. Stax delivers deep transatlantic expertise and a proven track record of 400+ Commercial Due Diligence (CDD) engagements annually, over half of which were focused on technology and software deals. Stax is uniquely positioned to navigate and maximize your Horizontal SaaS investment across the Atlantic.

What Makes the US Market So Alluring?

1. Valuation Premiums for Horizontal Solutions

In Cybersecurity (above), US multiples hover between 18–25x EV/EBITDA, compared to the UK’s 15–20x. That’s a meaningful difference when you’re aiming to maximize exit potential.

For Project Management Tools (above), the US can command a 22–30x EV/EBITDA range, dwarfing the UK’s 18–24x.

Even in traditionally lower-multiple areas like ERP/Workplace Management (above), US ranges (16–22x) outstrip the UK (12–18x).

2. Greater Growth and Profitability

Many US subsectors boast average growth rates exceeding 20%. Take Office of the CFO solutions , growing at 25% in the US against 20% in the UK.

Gross margins also tend to be higher—80–85% for Office of the CFO solutions in the US vs. 75–80% in the UK—often making American acquirers more willing to reward strong fundamentals with higher valuations.

3. Larger Addressable Market

The US is home to an expansive base of enterprise clients willing to pay a premium for advanced features, whether AI-driven forecasting in CFO tools or advanced security layers in cybersecurity platforms.

While European regulations like GDPR do favor compliance-driven innovation, the sheer scale of the US market can offset higher customer acquisition costs with larger deal sizes and stronger upsell opportunities.

4. Innovative Culture and Accelerated Adoption

The US leads in AI/ML integration across multiple horizontals: Sales and Marketing Tech adoption sees advanced analytics playing a huge role in capturing new markets.

In Human Capital Management (above), for example, the US invests heavily in talent analytics and AI adoption, translating into more robust platform capabilities and higher willingness-to-pay among corporate clients.

Do US Regions Matter?

Absolutely. Not all US markets are created equal:

Silicon Valley (West Coast): Dominates AI/ML development and early-stage adoption of cutting-edge SaaS solutions.
East Coast (New York, Boston): A hub for financial services and enterprise clientele for solutions like GRC (Governance, Risk & Compliance) and Office of the CFO tools.
Texas (Austin, Dallas): Emerging as an enterprise tech center, known for strong start-up ecosystems and mid-market expansions that can quickly become large-scale.

By targeting the right region, UK PE-backed SaaS firms can find a more specialized and engaged customer base, reduce time to scale, and amplify valuation multiples upon exit.

Why Is 2025 the Moment to Go Transatlantic?

1. Heightened Investor Appetite

US private equity dry powder remains at historical highs, with a large portion earmarked for technology. Buyers are increasingly seeking stable yet high-growth opportunities, and European SaaS solutions—especially those with strong compliance features—can be an ideal match.

2. Rule of 40 Advantage

Many US investors emphasize the “Rule of 40” — For instance, Office of the CFO solutions (above) in the US often post Rule of 40 scores between 60–70, signaling both robust growth and profitability. If your UK-based Horizontal SaaS business matches these metrics, you may find an eager and enthusiastic buyer.

3. Greater AI Readiness

With the US market leading in AI adoption, SaaS categories like Sales & Marketing Tech and Project Management Tools —which see top-line growth of up to 28% in the US—benefit from a more substantial client base ready to invest in advanced features. This readiness can accelerate product roadmap adoption and ultimately improve valuations.

4. Consolidation Trends

US strategic acquirers and larger PE funds are continually seeking add-on acquisitions to expand their SaaS portfolios. Whether it’s Cybersecurity or ERP/Workplace Management , synergy-led transactions are a key strategy for growth. By aligning with a US buyer, your portfolio company could become part of a robust, integrated SaaS ecosystem—unlocking cross-sell and up-sell synergies.

5. Stax’s Cross-Atlantic Expertise

We understand the nuanced differences between UK and US buyer mindsets, as well as the operational readiness needed for a successful expansion or sale. Our focus is ensuring your Horizontal SaaS asset not only stands out in a crowded US market but also capitalizes on every available value driver.

What Are the Risks to Consider?

Crossing the Atlantic isn’t without challenges. The US can involve higher customer acquisition costs and more competitive marketing spend, especially in saturated segments like Sales and Marketing Tech or Human Capital Management . Compliance overheads also vary by state, adding to complexity in fields like Cybersecurity or GRC . Yet with robust planning, these challenges can be mitigated, particularly when guided by advisors adept in transatlantic M&A dynamics.

How Grant Thornton Stax Can Help

Thinking of expanding your Horizontal SaaS portfolio company to the US? The data is clear: higher valuations, broader customer bases, and advanced technology adoption make the US a prime destination for growth and exit. But success requires more than ambition—it demands strategic positioning thorough due diligence and cross-cultural market insight.

Commercial Due Diligence & Market Mapping: Assess your readiness and competitive edge in the US across multiple sub-verticals—whether it’s CFO solutions in New York or project management tools on the West Coast.
Operational Readiness: Optimize your SaaS offering for the US market, ensuring you meet product, compliance, and cultural expectations.
Valuation & Negotiation Strategy: Identify the right buyers or growth partners, articulate clear synergy potentials, and command top-tier multiples for your Horizontal SaaS firm.

Contact us directly for an assessment of how we envision your PortCo’s US expansion.

Andrew Keller

Managing Director

Interested in US Exits? Read more!

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Global Decarbonization Trends and the ‘America First’ Energy Policy: What PE Investors Need to Know

Mon, 24 Mar 2025 14:14:16 GMT

Anuj A. Shah

Partner, ESG & Impact Advisory

Brad Kuntz

Partner

Joel Slater

Managing Director

The Trump administration’s “America First” energy policy, exemplified by the fast-tracking of fossil fuel infrastructure, presents a striking contrast to the broader global push for decarbonization. Despite federal signals favoring oil and gas, institutional investors and state governments continue to prioritize clean energy. For private equity (PE) deal teams on both sides of the Atlantic, it’s crucial to parse these conflicting trends to uncover long-term investment opportunities.

Decarbonization Drivers: What Global Forces Are Shaping the Narrative?

As the table below illustrates, a diverse set of forces continues to propel global decarbonization, even amid varying signals at the US federal level. Many American states, alongside the UK and EU, are enacting robust climate policies and incentives that bolster clean-energy development. Meanwhile, corporate commitments to science-based targets remain a core component of business strategies, aided by ever-declining costs for renewables and battery storage. Institutional investors and lenders increasingly demand transparent ESG reporting, reflecting broader market expectations for sustainable, resilient returns. At the consumer level, growing demand for eco-friendly products, combined with rising physical climate risks (I.e., extreme weather), highlight the urgency for carbon reduction. Finally, enhanced disclosure requirements in multiple jurisdictions are driving companies to track and mitigate their GHG emissions, reinforcing the transition to a low-carbon economy.

Key Developments: How Is the Energy Transition Unfolding Globally?

Despite a mix of signals in the US, the real-world dynamics of the energy transition continue to underscore the global momentum behind decarbonization. Below are several developments we see shaping the near-term landscape:

- Electrification Boom

Worldwide growth in electric vehicle adoption, industrial electrification, and data-center expansion is fueling unprecedented demand for reliable power infrastructure. As technology costs for renewables and energy storage continue to drop, the opportunity to meet this surging demand with cleaner solutions becomes increasingly attractive to investors.

- Europe’s Regulatory Momentum

The UK and EU remain at the forefront of ambitious climate policies, driving investments in renewables, grid modernization, and low-carbon technologies. Initiatives such as the EU’s “ Fit for 55 ” and Carbon Border Adjustment Mechanism (CBAM) signal the region’s ongoing commitment to tightening emissions targets.

- Balancing Short-Term Fossil Reliance with Long-Term Goals

Volatile energy prices and geopolitical uncertainties have prompted some near-term increases in fossil fuel use. However, robust clean-energy incentives (e.g., the US Inflation Reduction Act), coupled with corporate sustainability commitments, are driving longer-term shifts toward renewables, energy efficiency, and advanced storage marking a clear trajectory for decarbonization.

Implications & Opportunities: Where Should PE Investors Focus?

For private equity investors, the energy transition poses both strategic challenges and opportunities for strong returns. Below are several high-potential sectors where decarbonization trends can boost portfolio resilience and long-term value:

- Grid Modernization & Resilience

Advanced monitoring, mission-critical testing, and storage solutions to handle growing electricity demand

- HVAC & Energy Efficiency

High-efficiency systems and building automation that reduce both carbon footprints and operational costs

- Industrial Efficiency & Resource Optimization

Scalable water treatment, real-time data analytics, and process electrification that curb emissions and improve margins

- Circular Economy & Recycling

Technologies that extend product lifecycles, optimize resource use, and lower waste streams

- Low-Carbon Food Production & Packaging

Sustainable aquaculture, alternative proteins, and smart packaging to meet rising consumer and corporate sustainability expectations.

Conclusion: Where Do We Go from Here?

Despite short-term policy changes in the US, overall decarbonization momentum remains propelled by market forces, technological advances, and stakeholder demands. PE deal teams are well-positioned to benefit by proactively adapting their portfolios.

We invite you to reach out for a deeper conversation on how these trends can translate into tailored, value-creating strategies for your investments. Visit us at www.stax.com or click here to contact us directly.

Anuj A. Shah

Managing Director, ESG & Impact Advisory

Brad Kuntz

Senior Managing Director

Joel Slater

Director

Anuj A. Shah

Partner

ESG & Impact Advisory

Brad Kuntz

Partner

Industrials

Joel Slater

Managing Director

Industrials

Stax Advises HITRUST, a Leading Cybersecurity Assurance Platform, on Growth Investment from Brighton Park Capital

Wed, 19 Mar 2025 17:51:48 GMT

Ben Bugg

EMEA Financial Sponsors Coverage

Grant Thornton Stax congratulates HITRUST , a leader in information security assurance for risk and management and compliance, on its recent growth investment by Brighton Park Capital . We are proud to have provided sell-side support, collaborating with HITRUST's management team and their investment bank Harris Williams during the transaction.

HITRUST is a leading provider of cybersecurity assurance, supporting risk management and compliance through certification programs that validate security, privacy, and AI controls. Built on insights from 50+ standards and frameworks, its threat-adaptive approach delivers comprehensive, reliable solutions, including customizable assessments, a network of independent assessment firms, centralized quality reviews, and certification reporting. Additionally, its robust SaaS platform streamlines security and compliance processes.

Contact the Grant Thornton Stax team:

Insights Related to TransAtlantic Growth:

Paul Edwards

Global Practice Leader

Roy Lockhart

Partner

Amy Helenbrook

Partner

Sam McCabe

Director

Stax Advises Quorum Software on its Acquisition of zdSCADA, a Leading Cloud-based SCADA Provider

Mon, 17 Mar 2025 20:05:57 GMT

Grant Thornton Stax congratulates Quorum Software on its recent acquisition of zdSCADA , a leader in cloud-based supervisory control and data acquisition (SCADA) technology. We are proud to have supported Quorum Software with our investment advisory services in this successful transaction.

zdSCADA is a leading provider of cloud-based SCADA solutions, enabling oilfield operators to monitor, control, and report on operations in real time. Designed with advanced technology and industry expertise, zdSCADA enhances digital oilfield management by delivering seamless connectivity and data-driven insights. Integrating zdSCADA’s capabilities with Quorum’s upstream and measurement solutions will help operators optimize production, improve efficiency, and strengthen digital connectivity between field and office operations.

Contact the Grant Thornton Stax team to learn more:

Palash Misra

Partner

Yevgeniy Volodin

Director

About Grant Thornton Stax

Stax Advises Audax Private Equity on its Strategic Investment in Fortis, a Payments Tech Leader

Mon, 17 Mar 2025 13:39:40 GMT

Stax congratulates Audax Private Equity on its recent strategic investment in Fortis , a leading payments technology for software providers, ERP customers, and scaling businesses. We are proud to have supported Audax with our investment advisory services in this successful transaction.

Fortis is a leading provider of embedded payment solutions, empowering software partners, developers, and businesses with secure, end-to-end payment capabilities. Its proprietary, integrated platform enhances software functionality, enabling a seamless, omnichannel payment experience while processing billions of dollars annually.

By delivering comprehensive commerce enablement, Fortis helps businesses scale and streamline transactions, ensuring frictionless payments across industries. With a focus on innovation and integration, Fortis continues to shape the future of embedded payments, driving efficiency and growth for its partners.

Contact the Stax team to learn more:

Paul Edwards

Global Practice Leader

Marissa Licursi

Mar issa Licursi

Director

About Stax

De-Globalization & Strategic Risks: How PE Investors Can Safeguard and Unlock Value

Fri, 14 Mar 2025 13:25:03 GMT

Anuj A. Shah

Partner, ESG & Impact Advisory

Introduction: Why Are Strategic Risks Escalating Now?

As de-globalization reshapes international trade, supply chains, and investment flows, heightened trade barriers, shifting political alliances, and economic nationalism have become top-of-mind for businesses worldwide. At the same time, sustainability and ESG considerations , which were once seen as peripheral, now feature prominently in everything from regulatory mandates to consumer expectations. Taken together, these forces can significantly affect portfolio company performance particularly for firms with global footprints or cross-border supply chains, where even small shifts in regulation, trade policies, or stakeholder expectations can ripple across operations.

For private equity (PE) deal teams and portfolio company executives, failing to anticipate and address these intertwined risks can quickly erode returns and hinder competitiveness even in the short to medium term. This article introduces Stax’s holistic risk framework, which integrates geopolitical insights with ESG considerations, to help investors navigate an evolving global landscape and protect long-term value.

Anuj A. Shah

Partner, ESG & Impact Advisory

Defining Strategic Risks: Why Is a New Approach Urgently Needed?

For decades, companies and investors operated in an environment of deepening globalization. Market barriers steadily fell, cross-border cooperation grew, and geopolitical concerns, for the most part, only played a marginal role in business strategy. However, as global tensions rise and protectionist policies gain traction, particularly in the US, the longstanding ‘givens’ of open markets, stable supply chains, and predictable regulatory regimes are no longer assured.

Simultaneously, ESG and sustainability, once viewed as separate or peripheral initiatives, have become integral to strategic planning. As regulatory volatility, geopolitical tension, and shifting stakeholder expectations converge, they can significantly disrupt a company's business model, with impacts spanning the short, medium, and long term. Recognizing these risks and the opportunities they present has become essential to maintaining a competitive edge. Common examples include:

Regulatory & Policy Changes : New tariffs, tax reforms, labor or climate legislation.
Geopolitical Shifts : Leadership changes, sanctions, or conflicts that disrupt key markets.
Market Disruptions : Rapid technological advancements (e.g., AI) and shifting consumer behaviors.
ESG/Sustainability Factors: Evolving reporting requirements, stakeholder imperatives, and climate pressures.

Identifying Companies Most Exposed: Where Should You Focus?

Certain attributes make a company more vulnerable to strategic risks:

1. Industry & Sector Analysis

Highly regulated industries (defense, energy, tech) often face political and compliance pressures, while high-innovation sectors (fintech, mobility) can be quickly upended by new entrants or technology leaps.

2. Geographic Footprint & Supply Chains

Heavy reliance on single-source suppliers or politically unstable regions magnifies exposure to trade disputes or local crises.

3. ESG & Sustainability Alignment

Businesses without robust ESG frameworks or clearly defined sustainability objectives risk failing to meet emerging standards and can encounter reputational or regulatory challenges.

4. Stakeholder Sensitivity

Consumer-facing brands and companies subject to heightened public scrutiny (whether for labor practices, environmental concerns, or data privacy) are at greater risk of reputational damage.

Integrating Geopolitical & ESG Perspectives: How Do We Turn Risks into Opportunities?

At Stax, we’ve developed a proprietary methodology that merges sustainability frameworks with enterprise risk management, ensuring that geopolitical and ESG factors are assessed within the same lens. Removing these silos helps to reveal synergies that might otherwise go overlooked; for example, localizing production to mitigate geopolitical exposure while simultaneously reducing carbon footprints and aligning stakeholder expectations for more responsible operations.

With this type of integrated approach, strategic risks don’t have to be treated solely as defensive concerns. Actions such as near-shoring, adopting cleaner technologies, or capitalizing on shifting regulations can transform into growth levers provided they are approached holistically.

Where Do You Go from Here?

In a world where geopolitical tensions and ESG mandates will increasingly converge, taking a holistic view of strategic risks is essential to value protection and creation. By proactively identifying, prioritizing, and mitigating these risks, PE deal teams can strengthen portfolio performance even in volatile market conditions.

If you’d like to explore how this integrated approach can be tailored for your needs, please contact us here to learn more.

Featured in Pitchbook: Gaining an Edge Through Subsector Specialization

Thu, 13 Mar 2025 20:09:40 GMT

Robert Lytle

Senior Managing Director

Robert Lytle is a senior managing director at Stax, bringing over 30 years of experience in industry and strategy consulting within the private equity ecosystem.

This article was featured in Pitchbook's 2024 Annual US PE Middle Market Report.

The evolving landscape of private equity

The Gibson LBO of 1982 is often cited as the dawn of modern private equity , which for the next few decades thrived on carveouts, LBOs of sleepy conglomerates, and uncontested founder transitions. However, those halcyon days are long gone. Today, with over 10,000 private equity firms and hedge funds competing for deals and Pitchbook reporting that global PE dry powder exceeded $1.6 trillion in June 2024, the investment landscape has become significantly more competitive.

Founder transitions beyond the lower middle market are becoming increasingly rare, while prevailing multiples imply robust underlying growth assumptions. In this mature environment, where first-round bids frequently attract 10 or more interested parties and multiple contenders continue to the second round, the ultimate victor needs to identify a value creation opportunity that eludes other bidders—or, distressingly, convince themselves of a value creation opportunity that does not actually exist.

While commercial diligence remains essential, its effectiveness depends on the strength of the underlying investment thesis. A compelling approach relies on a proprietary perspective—an insight that differentiates a bidder from the competition. Conviction in a deal is not just about validating market size, segmentation, and growth rates; it requires a firm belief in an angle other investors have missed.

Robert Ly tle

Partner

Robert Lytle is a Partner at Grant Thornton Stax, bringing over 30 years of experience in industry and strategy consulting within the private equity ecosystem.

The power of specialization: From vertical to subsector focus

Recognizing the need to have proprietary perspectives, most PE firms have specialized in a limited number of verticals or structured themselves behind vertical markets. Verticalization offers clear advantages: deeper market knowledge, stronger competitive insights, robust and interlocking relationship networks, and a sharper instinct for unlocking value. Industry experts agree that specialization correlates with better post-acquisition returns. But as more teams adopt this model, wherein lies differentiation? What defines true verticalization? Are broad categories like consumer or healthcare really verticals or do investment teams need to dig deeper?

Leading PE investors excel by diving into subsectors to develop winning investment theses. To gain a competitive edge, they:

Go beyond the surface: Sharpen insights at the subsector level where assets truly compete.
Prioritize with precision: Classify subsectors as “retreat, watchlist, and high conviction” to allocate effort efficiently.
Make the right “friends”: Cultivate deep relationships within chosen subsectors, ensuring a strong network and early access to opportunities.

1. Go beyond the surface

When we work with deeply subsector-focused PE firms, commercial diligence takes on a different hue. While we still document market trends and competitive positioning, our clients—already well-versed in these broader assessments—have long been active in the space. As a result, our focus has shifted to specific proprietary investment theses, such as:

A company with low market awareness, where a revised go-to-market strategy—featuring a doubled salesforce and invigorated marketing—could drive accelerated growth.
A firm struggling with weak cross-selling due to uncompelling bundling and poor incentive structures, creating an opportunity for optimization.
A business with a clear runway in its current sector but evident potential to expand its solution into hospitals and clinics.

In a competitive landscape where five or six firms will coalesce on similar views of market size, segmentation, growth rates, and market shares, the winning bidder needs strong conviction around a proprietary perspective—sufficient conviction to underwrite the cross-selling opportunity if they are to win the bid.

Breaking down the education sector

With a career focused on education and government, I’ve seen firsthand the importance of subsector specialization. Simply identifying as an “education and workforce-oriented investor” is a start, but true differentiation comes from breaking down the sector into subsectors.

Education spans early childhood education, K-12, higher education, corporate training, continuing education, and workforce development. While this broad taxonomy outlines the landscape, it overlooks the unique forces shaping each segment. Early childhood, K-12, and higher education operate under distinct dynamics, and even within K-12, instructional materials, services, and technology—each face different market drivers, competition, and growth potential.

This breakdown still lacks granularity. K-12 technology solutions further fragment into categories such as:

Student information systems and human capital solutions—driven by district-wide operational efficiencies, long sales cycles, and integration needs.
Web filtering, parent communications, and critical event management—governed by compliance mandates, safety priorities, and evolving user expectations.

Investors who focus on subsector trends gain deeper insights, refine investment theses, and allocate resources more effectively. Success hinges on data-driven analysis to distinguish high-value opportunities, requiring deep sector intelligence, strategic focus, and a commitment to uncovering real value drivers.

2. Prioritize with precision

A strong subsector fact base supports efficient resource allocation, and at Stax, we tend to classify opportunities into three categories: retreat, watchlist, and high conviction.

Retreat: If a subsector is classified as “retreat,” we would advocate not allocating time and effort. If a confidential information memorandum comes across the desk, read it, but investing more than a nascent amount of time and effort to these subsectors is unlikely to yield an opportunity that will survive investment committee scrutiny. However, maintaining relationships is key—what’s a retreat today may be a high-conviction opportunity in a few years.

Watchlist: These subsectors are more complex. The investment team already views the space as lukewarm at best, but if an interesting asset is coming to the market, kick the tires and check it out. But the asset will need to be a clear leader to overcome a tepid perspective on the underlying market and it is unlikely the team will develop sufficient conviction to submit a winning offer.

High conviction: Investment teams focus their efforts on these high-priority subsectors, developing deep expertise, tracking buyer behaviors, monitoring regulatory issues, and analyzing competitive dynamics to shape proprietary investment theses.

3. Make the right “friends”

Deep subsector understanding is necessary but insufficient; investors need to cultivate strong relationships with key players—including executives, owners, lawyers, bankers, regulators, and customers—well before deals come to market. While the gold standard is an uncontested process, a more realistic goal is threefold:

1. Anticipate market activity : Know in advance when a prized asset is likely to come to market.

2. Develop a proprietary investment thesis: Have a clear, differentiated point of view on the asset’s value creation potential.

3. Become a trusted partner: Build credibility with management teams and owners long before a transaction occurs.

The best investment teams I have worked with over the past 25 years maintain a deep pipeline of opportunities, which they have been tracking for years. I am amazed at the patience and persistence some investors have within subsectors they really like. One investor, for example, focuses on only a handful of subsectors and routinely closes deals where initial conversations started over a decade ago. This methodical approach has consistently driven post acquisition value creation.

Achieving long-term success through subsector conviction

In today’s competitive deal landscape, winning bids require more than broad sector expertise—they demand deep, subsector-level conviction. Successful investors go beyond traditional verticalization, developing insights at the subsector level, strategically prioritizing opportunities, and fostering long-term relationships within their chosen markets. This approach sets firms apart and drives profitable outcomes. Learn what sets Stax apart by visiting www.stax.com or by clicking here to contact us directly.

Stax Advises H.I.G. Capital on its Strategic Investment in 360 Destination Group

Thu, 13 Mar 2025 19:49:26 GMT

Ben Bugg

EMEA Financial Sponsors Coverage

Grant Thornton Stax congratulates H.I.G. Capital on its recent strategic investment in 360 Destination Group , a leading destination management company. We are proud to have supported H.I.G. with our investment advisory services in this successful transaction.

For more than 45 years, 360 Destination Group has been at the forefront of delivering personalized, immersive event experiences for corporate and association clients. Operating across key U.S. markets and internationally, 360DG offers end-to-end event planning, expert logistical coordination, and in-depth destination insights. Known for its creative approach, flawless execution, and strong local expertise, the company is a trusted partner for organizations looking to create meaningful, high-impact events.

Contact the Grant Thornton Stax team:

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Roy Lockhart

Partner

Florent Jarry

Partner

David Li ndsay

Director

Stax Advises Agellus Capital on its new National Fire, Life, and Safety Platform

Tue, 04 Mar 2025 20:00:50 GMT

Stax congratulates Agellus Capital on the formation of Bluejack Fire & Life Safety through a series of strategic acquisitions. By bringing together FirePro Tech LLC (Texas), Chase Fire (New York), and AAA Fire Protection Services (California), Agellus has built a strong platform in fire and life safety. We’re proud to have supported Agellus Capital with our investment advisory services.

FirePro Tech LLC, founded in 2014, specializes in inspection, testing, repair, and maintenance of fire suppression and alarm systems. Established in 2006 by Artem Perchenok, Chase Fire primarily focuses on fire extinguisher services with a growing kitchen suppression segment. Founded in 1974, AAA Fire Protection provides maintenance and repair services for fire sprinkler systems, commercial kitchen grease exhaust systems, and portable extinguisher suppression.

For more details on our experience in the space, please contact the Stax team:

Tyler Veit

Partner

Tyler Veit

Partner

Managing Director

Kelsey Chisholm

Partner

Kelsey Chisholm

Partner

About Stax

Investing in UK Health: Eight Themes Driving Investment Opportunities in UK Health & Social Care

Fri, 28 Feb 2025 17:55:04 GMT

From NHS collaboration and social care partnerships to private pay expansion and tech-enabled care, the UK healthcare market offers diverse opportunities—but responsible investment is key, focusing on sustainable value rather than crisis-driven gains.

In our recent whitepaper, Adam Thorpe , Managing Director and EMEA Healthcare vertical lead, explores themes driving investment opportunities in UK healthcare, highlighting high-potential segments, critical growth factors, and key considerations for successful investments—including what differentiates strong opportunities from weaker ones in the UK private healthcare sector, including:

Download the report below to learn more about the key themes driving investment and where to invest in UK healthcare going forward

The Impact of Growing NHS Wait Lists
Shifts in Patient Behaviour and Demand for Greater Choice
Moving Care to the Community
Investment Potential in Healthcare Infrastructure
Opportunities Arising from the Healthcare Staffing Crisis
Growth Potential in the Private Pay Market
The Role of Data, IT, Tech, and AI in Transforming Healthcare
Increasing Demand for Services in Mental Health, Neurodiversity, and Social Care

Download the report to learn more about the key themes driving investment and where to invest in UK healthcare going forward

The Impact of Growing NHS Wait Lists
Shifts in Patient Behaviour and Demand for Greater Choice
Moving Care to the Community
Investment Potential in Healthcare Infrastructure
Opportunities Arising from the Healthcare Staffing Crisis
Growth Potential in the Private Pay Market
The Role of Data, IT, Tech, and AI in Transforming Healthcare
Increasing Demand for Services in Mental Health, Neurodiversity, and Social Care

“While each business and investment opportunity is unique, we believe that careful, and well-targeted investments can drive attractive financial returns whilst also providing long-term value to the UK health and social care system. Whilst the funding scenario may be uncertain and the scale of the issues facing UK healthcare are significant, we believe the future offers substantial opportunities as the UK’s delivery models evolve and as technology helps drive efficiency, improvement and better outcomes.

The sector is in a critical need of investment and support, creating strong demand for initiatives focused on sustainable value creation in the coming years.” – Adam Thorpe, Managing Director, Stax

The sector is in a critical need of investment and support, creating strong demand for initiatives focused on sustainable value creation in the coming years.” – Adam Thorpe, Managing Director, Stax

"While each business and investment opportunity is unique, we believe that careful, and well-targeted investments can drive attractive financial returns whilst also providing long-term value to the UK health and social care system. Whilst the funding scenario may be uncertain and the scale of the issues facing UK healthcare are significant, we believe the future offers substantial opportunities as the UK’s delivery models evolve and as technology helps drive efficiency, improvement and better outcomes.

About Stax

Our European healthcare offer targets a range of sub-segments including care services, pharma and medical devices, services into care and life sciences, childcare and education, tech-enabled care and health IT services. We offer a distinct value proposition:

Founded in PE, deals and strategy consulting and a trusted advisor with a 30-year track record.
Focused on a small number of sectors (including health).
Access to expert insights and senior advisors into healthcare markets; with a real focus on strategic insights and value creation for our clients.
Expertise in building US growth for European businesses, European growth for US businesses and in accessing potential investors both sides of the Atlantic.

To learn more about our work in Healthcare, or to talk with one of our experts, visit www.stax.com or click here to contact us directly .

Vince Zosa Named One of The Top 25 Operations and Supply Chain Leader by The Consulting Report

Wed, 26 Feb 2025 18:57:39 GMT

The Consulting Report has released its 2025 list of Top 25 Operations and Supply Chain Leaders , recognizing professionals who are reshaping how businesses manage sourcing, production, and distribution. Beyond traditional process improvement, these leaders are driving innovation through advanced technologies such as data analytics and automation to enhance efficiency and drive long-term value. Stax is proud to celebrate Vince Zosa , Managing Director and Head of Value Creation, for earning a place on this distinguished list.

Since joining Stax in 2022, Vince Zosa has leveraged decades of experience advising private equity firms, portfolio companies, and public corporations at the highest levels. As the leader of Stax’s Value Creation practice, he has driven an accelerated approach to deepening and expanding the firm’s private equity relationships—particularly in the areas of value creation and data analytics across Software & Technology , Industrials , and B2B Services . With a focus on helping companies achieve sustained, profitable growth, Zosa has built a strong foundation for revenue-driven value creation.

Vince Zosa

Partner

How Vendors are Catering Legal Practice Management Solutions to Mid-Market Firms

Tue, 25 Feb 2025 16:13:18 GMT

Nikki Shah

Director

The legal tech sector has seen significant investment over the past few years. While most of the focus to-date has been on legal practice management (LPM) solutions that serve the SMB market (less than 20 attorneys), there has been increasing interest in mid-market (20-100 attorneys) solutions. Vendors are increasingly tailoring their offerings to meet the distinct needs of this growing and relatively underserved market.

With extensive experience in the LPM space, Stax explores the unique dynamics of mid-market law firms, comparing their needs to SMB firms, assessing the vendor landscape, and identifying opportunities for TAM expansion.

Growth Drivers

New adoption and switching continue to drive growth:

Mid-market firms (20–100 attorneys) account for 1% of all law firms in the US but represent ~20% of the total LPM TAM. A third of mid-market firms have yet to adopt an LPM solution, creating considerable whitespace.

Additionally, the ongoing shift from on-premise to cloud-based platforms is driving further market growth. As legacy systems are sunset, many firms are re-evaluating their systems, creating opportunities for vendors to capture share by offering modern solutions.

Mid-market firms prioritize back-office depth and customizability:

While SMB firms use LPMs to manage the lawyer and matter, mid-market firms use LPMs to manage the firm. The goal of the LPM is to reduce costs and increase revenue via increased visibility into KPI performance at the attorney, matter, client, and firm level.

As such, mid-market firms prioritize advanced back-office functionality in their LPM. These include advanced timekeeping, billing, financial accounting, and customizable reporting, with many firms treating their LPM as an ERP system. Unlike SMB firms—which focus on price and ease of use—mid-market firms value depth of functionality and the ability to customize tools to their needs.

At the same time, many mid-market firms operate as collections of “mini firms” due to their multiple practice areas. Each practice area often manages cases independently, whether through manual processes, their firm’s LPM, or document management systems like iManage or NetDocuments.

Still, not all mid-market firms are the same. Lower mid-market firms (~21–50 attorneys) with simpler workflows and fewer practice areas often align with SMB preferences and are more likely to adopt SMB-oriented vendors. Upper mid-market firms (~51–100 attorneys) demand greater sophistication, especially in financial reporting and customizability, reflecting their more complex workflows and client demands.

Vendor Landscape

The vendor landscape is fragmented and evolving:

Vendors serving the mid-market include SurePoint, Centerbase, Tabs3, Juris, and Actionstep. Unlike the SMB market, there is no 800-pound gorilla in the mid-market yet.

Vendors that successfully serve this segment must prioritize advanced financial functionality, as it remains a core requirement for mid-market firms. While SMB vendors are increasingly adding basic firm accounting capabilities, mid-market firms demand more sophisticated and customizable features.

Effective mid-market solutions include features like alternative fee arrangement invoicing, custom accounting fields and data tracking, advanced KPI visibility (at attorney, matter, client, and firm levels), and granular permissions management.

Still, as vendors expand their offerings, the competitive landscape is evolving.

Differentiation is no longer limited to functionality depth. Cloud capabilities, ease of use, customer support, and AI-powered features are becoming increasingly important in vendor selection.

Some SMB-focused vendors, such as Clio, PracticePanther, and Caret, are making efforts to expand into the mid-market. While the success of these vendors has been mixed, they have gained traction in specific pockets, such as a singular practice area within a mid-market firm, or lower mid-market firms with simple workflows that operate more like an SMB firm.

However, these vendors often lack the depth of functionality required to fully address the demands of the broader mid-market segment. Although they may not pose a significant threat at this stage, it’s important for mid-market vendors to stay aware of these developments and monitor potential competitive dynamics.

Vendors explore expansion opportunities to further differentiate and expand TAM:

As mid-market adoption increases and whitespace narrows, vendors are exploring opportunities to expand their offerings. By integrating additional tools, they can unlock new revenue streams and enhance their value proposition. Key areas for expansion include:

BI/analytics
Docketing
Marketing (e.g., CRM, client intake, website management, etc.)
Data/intelligence

Recent acquisitions reflect this trend, such as SurePoint acquiring Coyote/Leopard and Centerbase acquiring Legalfit. These moves underscore the growing emphasis on broadening product offerings to meet evolving customer needs.

Conclusion

The mid-market LPM space offers a significant growth opportunity, with substantial whitespace remaining and firms increasingly open to switching solutions as they transition to the cloud.

As more vendors attempt to attack this space, it is important to recognize what segment of mid-market firms each vendor serves and how aligned they are to serve them.

Key considerations include:

Which sub-segment of mid-market firms does the vendor serve most effectively?
How does the vendor’s differentiation strategy align with mid-market demands?
What are the vendor’s retention rates among customers transitioning to cloud-based solutions?
What additional capabilities could drive cross-sell?

Stax is a leading partner to equity sponsors and investment banks in the Legal technology sector. Our work is routed in deep sector and asset-specific experience, as we’ve continued to track and monitor the legal technology space over the past several years. To learn more about Stax and our services, visit www.stax.com or contact us here to learn more.

Power Price Forecasting: Stax Perspective on a Growing Market

Mon, 24 Feb 2025 17:58:50 GMT

Andrew Keller

Managing Director

Private equity is increasingly investing in businesses poised to benefit from the global energy transition due to the rapid shift towards renewable energy sources and the inherent opportunities in this evolving market. The long-term power forecast segment presents a particularly attractive investment opportunity, as it not only benefits from the macro energy transition but also increasingly incorporates favorable business model elements (i.e., subscription revenue models) and low capital expenditure requirements.

The Need for Long-Term Price Forecasts

Utilities and energy infrastructure investors rely heavily on long-term power forecasts to make informed investment decisions—and for valuing existing portfolios of assets—in an increasingly dynamic and complex energy landscape. These key drivers include:

Government policies : To varying degrees, governments around the world are pushing decarbonization due to concerns about climate change.
Advancements in renewable energy technology : Improved solar and wind efficiency are steadily driving costs down and altering the economics of power generation.
Renewable energy intermittency : Power generation from sources like wind and solar can vary significantly based on weather and time of day, introducing added complexity.
Battery storage: Intermittency and technological improvements have also made newer technologies like grid-level battery storage more viable. These systems enable excess power to be stored during peak generation times and discharged when demand is high.
Customer demand: The rise of AI technology has the potential to significantly increase power demand, as data centers and computational infrastructures require substantial amounts of energy to support advanced processing. Simultaneously, customers are pushing for sustainable energy solutions.
Emerging power related technologies: While solar and wind power generation as well as batteries are now largely proven technologies there are a host of other emerging technologies such as green hydrogen, enhanced geothermal systems and small modular reactors which could also significantly change power market economics.

Andrew Keller

Managing Director

Underlying Market Dynamics

The impact of many of these drivers is reflected in the rising share of renewables across all geographies over the past two decades.

Furthermore, the International Energy Agency, which has historically (and frequently) underestimated the scale of the shift to renewables, expects this dramatic growth to continue.

Power Market Forecasting Business Models

Broadly, the need for long-term power price forecasting is served by two sets of players—with clear areas of overlap between the two:

Model software suppliers : Utilize a power supply and demand model, enabling the customer to drive the input assumptions and scenario analyses. A leading example is Energy Exemplar which was founded in Australia but now has a global footprint and focuses on software. As such, the company does not publish forecasts themselves but rather sells access to power modelling tool called PLEXOS.
Consultancies: Consultants who develop their own input assumptions to populate either an in-house model or a commercially available model. These consultants typically provide power price forecasts on either a bespoke project basis and/or as a subscription. Baringa and Afry (formerly Poyry) are notable European players with strong market reputations. An example of a hybrid player is Aurora Energy Research which started as consultancy with fast-growing power pricing forecast subscription business which has launched Software as a Service (SaaS) tools to that allow clients to model the overall power market and specific use cases like solar generation and battery valuation.

Key Power Forecast Purchase Criteria

Utilities and power infrastructure investors cite geographic coverage, reputation, and being “bullish” on the market as key criteria to assess power forecast providers. Interestingly, long-term price forecast accuracy was not cited, partly in recognition of how challenging this is. But feedback suggests short-term accuracy, over a roughly12-18-month period, is reasonably important as this is considered more achievable, absent geopolitical shocks such as the Russian invasion of Ukraine.

Opportunity for the Emergence of a True Global Power Price Forecaster

There is clearly a market opportunity for a global player as geographic coverage is a key purchase criterion for utilities and power infrastructure investors, but markets are strongly country or regionally focused for the time-being. Market entry has some track record of success with both Baringa and Aurora in entering the Australian market, despite well regarded local incumbents.

Conclusion

The evolving global energy landscape, driven by the transition to renewables and rising customer demand for sustainable power, presents significant opportunities for private equity investment in the power forecasting sector. Long-term power forecasts are essential for utilities and investors when navigating an increasingly complex market shaped by technological advancements, decarbonization policies, and emerging power technologies. As power forecasting continues to mature firms with strong geographic coverage and strong reputations are best positioned to capture market share and meet the demands of an industry that is both rapidly expanding and in flux.

Stax has extensive experience in software and business information in the US and Europe. We provide assessments and risk analysis through our use of data analytics and rapid, actionable insights to aid investors in gaining the most from their capital while remaining ahead of market trends. To learn more about Stax or our services, visit  www.stax.com  or click here to  contact us . 

Featured in World Finance: Private equity scores again

Wed, 19 Feb 2025 21:46:25 GMT

This story was originally featured in World Finance .

Private equity investment in sports has surged over the past decade as a result of the industry’s global appeal and competitive growth potential. 777 Partners, a US firm, attempted to capitalize on this trend by acquiring stakes in multiple football clubs worldwide before collapsing in October 2023—highlighting the risks of rapid expansion without sufficient market understanding.

In this recent article by World Finance, several experts weigh in on how, despite failures like 777 Partners, private equity continues to remain attracted to sports. While critics warn of inflated valuations and the risk of insolvency, particularly in European football, investors see opportunities to streamline costs and enhance commercialization. However, concerns persist that private equity’s short-term focus and cost-cutting measures may undermine the long-term sustainability and cultural integrity of sports organizations.

When asked, Roy Lockhart offered his thoughts on the impact of allowing PE ownership into the NFL and the implications this may hold for the leagues image moving forward:

Roy Lock hart

Partner

"NFL owners still want to project the image of long-standing family ownership as the typical model, and where that has been the case, winning has always been a priority in addition to financial success. By including these restrictions as they open up franchises to private equity investment, they are able to maintain this illusion while preparing for a future where franchises are treated more as investment vehicles than passion projects.”

- Roy Lockhart | Partner at Grant Thornton Stax

Financial Services and Transatlantic Ambitions: Why UK PE Investors Should Look West for Exits

Tue, 18 Feb 2025 21:12:51 GMT

Andrew Keller

Managing Director

For UK-based private equity (PE) investors in financial services, the traditional approach of following regulatory guidelines ensuring returns and fostering growth across domestic and European markets is shifting. Now in 2025, a new trend is emerging; the most rewarding paths for exits may not be found in their backyard but rather across the Atlantic—within the dynamic US financial services landscape.

Before making a decision on your portfolio company take a moment to consider whether you're strategically positioning your investment to benefit from the thriving US market. Or missing out on transformative returns.

Andrew Keller

Managing Director

The US financial services industry is vast, with a market size of approximately $22.4 trillion in 2024 compared to the combined €14.5 trillion in the UK and Europe. This difference goes beyond size; it reflects the sector's depth, diversity, and vibrancy. American firms’ standards and markets technology spaces often provide an environment for innovation compared to their counterparts in Europe.

In 2023, US fintech companies attracted $12.3 billion in funding—nearly double the €6.2B invested in European FinTechs. These numbers suggest a real interest for innovation and mergers and acquisitions. The US offers a foundation for scaling—be it transitioning a mid-sized wealth management firm to a digital model or deploying RegTech solutions that proactively address compliance requirements.

What Factors are Driving Opportunities in the US?

Market Fragmentation:

With over 4,200 FDIC insured banks and around 9,000 credit unions, the US presents a landscape ripe for consolidation compared to Europe's smaller number of concentrated financial institutions. As private equity investors seek exits, companies in the US market are often larger, better funded, and eager to acquire tech enabled solutions for scalable integration.

Navigating Regulatory Nuances:

The complex regulatory landscape in the US also offers opportunities for introducing financial technologies. By leveraging this intricacy—particularly in areas like RegTech and Supervisory Technology (SupTech)—private equity investors can increase the value of their portfolio companies. US firms are keen on adopting solutions that assist them in complying with overlapping state and federal regulations, such as consumer protections and cybersecurity measures. The growing importance placed on compliance functions is creating a favorable market for tools that enhance transparency and efficiency.

Embracing Technological Advancement and Scaling:

While European banks have been slower to embrace cutting edge technologies, counterpart institutions are often quick to adapt. For example, US wealth management firms, managing an impressive $44.5 trillion in assets under management (AUM), are rapidly digitizing their operations. The rise of platforms is witnessing an impressive annual growth rate of 22%. Private equity-backed companies that can showcase how their offerings align with the relentless pursuit of scalability, efficiency, and enhanced client experience by American firms may find themselves as exit candidates.

Impact of Interest Rates and Economic Factors:

Towards the end of 2024 the interest rate landscape set by the US Federal Reserve has shown volatility compared to the European Central Bank and the Bank of England. While higher rates may increase borrowing costs, they also enhance profit margins and potentially boost profitability in financial sectors. US financial institutions adept at navigating such economic variations often respond by pursuing acquisitions that strengthen their resilience. This creates opportunities for UK-based portfolio companies that offer efficiencies, diversification, or advanced analytics to assist US acquirers.

Specifically, are there sectors more appealing for exits in the US?

FinTech & Payment Technologies:

The US payment technology market, valued at $8.9 trillion, has seen digital payments reach 78% penetration. US investors are keen on technologies that streamline payment systems, incorporate AI-powered fraud detection and align with finance trends. A UK payment platform with cross-border capabilities and compliance features could quickly catch the attention of acquirers looking to gain a competitive edge in the US market.

RegTech & SupTech:

The complexity of regulations in the US presents a significant challenge but also an opportunity. There's a growing demand for solutions that simplify compliance processes related to Know Your Customer (KYC,) Anti Money Laundering (AML), and consumer protection regulations. In Q1 2025, US financial institutions are expected to accelerate the adoption of RegTech solutions due to changes in data privacy laws, cybersecurity standards, and reporting requirements related to Environmental, Social, and Governance (ESG) factors. UK private equity investors with top notch RegTech firms may find opportunities for exits as buyers in the US look for tools to navigate the maze of compliance requirements.

Capital Markets Technology:

Among markets worldwide the US stands out for having a sophisticated capital markets system that employs various solutions to enhance trading operations, liquidity management, and analytics—all of which are highly valued by investors. European private equity investors who have nurtured technologies in this space are likely to find a receptive audience. In the US, there is a demand from brokers, asset managers, and hedge funds seeking tools to gain a competitive edge.

WealthTech:

In the face of competition, challenges, and fee pressures, US wealth managers are turning to technologies that enhance client interactions and streamline operations. A WealthTech platform backed by UK expertise, offering features like portfolio analysis and seamless digital onboarding, could attract strong valuations.

InsuranceTech:

Within the vast US insurance market there is ample room for technological solutions that optimize claims processing underwriting or predict customer behavior. The InsurTech landscape is booming with opportunities for innovation. Private equity investors presenting proven solutions—especially those tested under regulatory standards—can capture the attention of US insurers aiming to stand out in the crowd.

How Can You Position Your Company for an Exit In the US?

1. Tailor Your Approach to US Customers

Showcase how your offerings specifically cater to American pain points. For example, focus on your solution's capacity to manage diverse consumer bases and navigate regulatory complexities. If your capital markets technology has successfully operated under rigorous regulations like MiFID II in Europe highlight its adaptability for compliance in the US.

2. Enhance Compliance and Technology Development Plans

US investors highly value technology integration strategies. Present product roadmaps that incorporate trends like AI and blockchain while also demonstrating how your portfolio company's technology reduces compliance expenditures boosts security and safeguards data privacy. Showcasing a commitment to staying ahead in addressing emerging trends, such as rising interest rates, evolving ESG standards, or changing consumer behaviors can enhance your company's valuation.

3. Tap Into Local Expertise and Collaborations

To attract investors, it would be beneficial to engage US-based strategic advisors who possess knowledge of the market's dynamics.

Firms such as Stax excel in guiding transatlantic mergers and acquisitions by offering expertise in conducting market research and fine-tuning value propositions for acquirers in the US. Taking steps towards entering the US market—whether it's by adapting marketing materials demonstrating local use cases or securing pilot clients—can significantly reduce risks during the deal process.

Is Your Company Prepared to Seize Its Worth?

The US financial services sector offers opportunities for impactful exits. The pace of innovation the appetite for deals and the scale of American buyers can lead to valuations and improved growth prospects for your portfolio companies. Instead of settling for gains in traditional markets it's worth considering the leap to explore the opportunities across the Atlantic.

It's not about capital; it's about accessing a thriving ecosystem that craves solutions for challenges while preparing for the wave of financial transformation.

For UK-based PE investors aiming to position their financial services portfolios for exits the US market holds promise. However, achieving success demands a strategic approach that comprehends US buyer perspectives, capitalizes on economic conditions, and showcases your portfolio's flexibility, compliance capabilities, and technological advantages.

About Stax

At Stax, we specialize in assisting PE investors with cross-border mergers and acquisitions. We support you in refining your strategy, identifying buyer segments, and fully preparing your portfolio asset for the rigorous scrutiny of the US market. With our expertise in services and cross-border transactions we ensure that your story resonates with potential buyers. Reach out to Stax now to chart your path towards a successful exit in the US and maximize the value of your next strategic move.

Grant Thornton Stax Insights

Featured by PYMNTS: FinTechs Cut Staff as AI and Margins Redefine Growth

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This article was originally featured on PYMNTS.com .

Pandemic Hiring Left an Overhang

Recommended: [Article Title]

AI and Profitability Redefine Performance Metrics

About Grant Thornton Stax

Tyler Michaels Recognized for Software & Technology Expertise at 2026 Rising Star Awards

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1. What would you say has been the biggest factor in your success so far?

2. What do you enjoy most about your career in the consulting industry? ﻿

3. What is your proudest achievement to date?

4. What's the best advice you've ever been given?

5. What would this recognition mean to you?

About Grant Thornton Stax

Turning Insight into Impact: Yiwei Jiang Recognized for Thought Leadership in Private Equity

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2. What do you enjoy most about your career in the consulting industry?

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3. What is your proudest achievement to date?

4. What's the best advice you've ever been given?

5. What would this recognition mean to you?

About Grant Thornton Stax

Not All Moats Are Created Equal: Applying an AI Risk Framework to GovTech

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Executive Summary:

Competitive Replication Risk

Insourcing: Not a real risk for GovTech ERPs

AI-native new entrants: Real question, but lower risk than it might appear

Horizontal vendors: similar barriers to AI-native entrants

Market Shrink Risk

The core ERP is not going anywhere

Pricing model disruption: Slow-moving but potentially real

Adjacent market expansion: Opportunity is there, but risk exists for slow movers

The Takeaway

Investment Opportunities in a Modernizing GovTech Ecosystem: GovTech Insights & Perspectives

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Executive Summary:

Overview of the State and Local GovTech Landscape

Market Trends

Investment Perspectives

Read More: Not All Moats Are Created Equal: Applying an AI Risk Framework to GovTech

Conclusion

Featured by The Food Institute: Pet-Food Investments Surge as Gen Z, Millennials Drive Humanization Trend

Samantha Pinkes

This article was originally written for " The Food Institute " by Kelly Beaton .

Samantha Pinkes

5 RSA Conference 2026 Takeaways for PE Investors

Sam McCabe

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Executive Summary:

1. Agentic-based security is everywhere - including eating the SOC category.

Sam McCabe

2. AI model transparency is becoming a buying requirement, and thoughtful human-in-the-loop is differentiating

3. AI is an attack surface, not just a defense tool

4. Platform Consolidation: The value proposition is stronger, but execution remains to be seen

5. Valuation is being driven by business quality, not just growth

Conclusion

Paul Edwards Featured on The Consulting Report's Podcast: Top Consultant

Grant Thornton Stax Advises Uplift Investors on its Acquisition of IMS Legal Strategies​

About Grant Thornton Stax

Youth Sports: Expanding Value in a Growing Market

Luke Scheibel

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Grant Thornton Stax Advises Uplift Investors on its Acquisition of IMS Legal Strategies

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Grant Thornton Stax Provides Sell-side Support to File & ServeXpress on its Acquisition by Northlane Capital Partners