🧵 Sycamore Partners is taking Walgreens private in a $10B buyout. The once $100B retail giant has fallen hard. Can Sycamore pull off a turnaround? Let’s break it down. 👇i.

Full case study in this week's newsletter breaks down PSG's playbook for transforming B2C/SMB software into enterprise software:

By 2021, revenue had tripled. Silversmith invested $425M. Here's what I learned breaking down this deal: M&A isn't just about roll-ups. It's a strategic tool that can completely pivot go-to-market and product strategies, as we saw with Formstack.

The transformation: .• Shifted from consumer/B2C → acquired into Salesforce, Dynamics, =NetSuite ecosystems.• Shifted from forms → acquired products to become document automation.• Grew from blogger customer base → B2B customers like Kaiser Permanente, Shell, and Netflix.

Instead of competing with Salesforce, Microsoft, and Oracle, Formstack integrated with them as a plug-in provider to these core CRM/ERP solutions. They became the document workflow automation layer that connected everything.

In 2018, PSG invested in Formstack—an online form builder with an average annual customer revenue of ~$500. Classic B2C/SMB play that most PE firms would pass on. But PSG saw something others missed: the plug-in opportunity to break into the enterprise B2B market.

How PSG transformed Formstack from a consumer/SMB point solution into a full document automation platform in 3 years using M&A.

𝗧𝗵𝗶𝘀 𝗶𝘀 𝗼𝗻𝗲 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗠&𝗔 𝗯𝗼𝗼𝗸𝘀—𝗺𝗮𝗸𝗲 𝘀𝘂𝗿𝗲 𝘁𝗼 𝗿𝗲𝗮𝗱 𝗶𝘁 𝗶𝗳 𝘆𝗼𝘂'𝗿𝗲 𝗶𝗻 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗣𝗘 𝗼𝗿 𝗿𝘂𝗻𝗻𝗶𝗻𝗴 𝗮 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝘆.

What was your favorite cartoon growing up? Probably not a PE-backed YouTube show. Read about how Blackstone gobbled up kid's YouTube channels to build a mini-Disney.

(3/3) Cortec Group formed Northstar Fertility, a surrogacy and egg-donor platform formed in 2022 via acquisition of Circle surrogacy. Through, Northstar, Cortec built vertically integrated platform covering all areas off surrogacy process. Full breakdown:

(2/3) Surrogacy market is estimated to grow to $37B by 2029. Each surrogacy costs between $150k-$200k, of which $50k goes to agencies. Mostly cash pay, out of pocket with all financing lined up at the start of surrogacy.

(1/3) From surrogacy agencies to fertility clinics, private equity is cashing out on the business of babies. The surrogacy agency roll-up has to be one of the more niche, unique private equity plays.

4/.This week's newsletter covers:.Why PE loved pet retail in 2015. What went wrong for Petco. Why Petco’s stock collapsed. How it could be a PIPE opportunity now. 🔗 Full breakdown:.

3/. Key playbook differences:.✅ Own high-growth adjacencies early.✅ Avoid short-term public market pressures.✅ Diversify away from retail.

2/.🔹 Petco (CVC + CPPIB-backed) went public. Faced margin pressure. Public market distractions. Delayed service expansion. 🔹 PetSmart (BC Partners-backed) stayed private. Bought Chewy early. Successfully spun out Chewy for $10B. Recently received Apollo investment.

1/. Petco stock is down 90% since its IPO. And it could be a PIPE opportunity for PE. Let’s first break down Petco vs. PetSmart—and what it reveals about PE strategy 👇.

4/.Ag tech may not get the headlines….But it powers food, fuel, and supply chains—and it’s loaded with predictable cash flow. 📩 Read the full breakdown:. #PrivateEquity #VerticalSoftware #SaaS #AgTech #RollUpStrategy #MergersAndAcquisitions.

3/.The playbook? Textbook PE software strategy:.✅ Focus on overlooked, sticky verticals.✅ Roll up niche competitors.✅ Expand across the value chain.

2/.started as a dairy ERP. Today, it’s a multi-vertical platform backed by Banneker Partners, with 10+ acquisitions across:.🌾 Grain risk management.🚜 Supply chain logistics.♻️ Sustainability & ESG.

1/. Most people are watching AI. Private equity is quietly rolling up #AgTech . This isn’t about hype—it’s about recurring revenue, fragmented markets, and mission-critical tech. Let’s talk about and why #AgTech is PE’s vertical SaaS play 👇.

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