Building category leaders in B2B commercial services
An attractive, structurally under-tooled market
The U.S. B2B commercial services landscape represents one of the largest pools of capital-light, recurring-revenue, locally-defensible cash flow in the lower-middle market — and one of the least institutionally tooled. The category is fragmented across tens of thousands of operator-owned businesses, most generating the majority of revenue from repeat customers under contracted or quasi-contracted arrangements. EBITDA quality is high, customer churn is low, and working capital intensity is manageable. What is missing is not demand, capital, or talent — it is modern operating infrastructure.
AI inverts the implementation cost-to-payback math
Prior technology cycles — ERP, cloud, mobile, vertical SaaS — passed over these businesses because the implementation cost-to-payback math rarely cleared the hurdle for an owner-operator. Modern AI inverts that math. Capabilities that previously required custom engineering, six-figure implementations, and dedicated IT headcount are now available as composable, configurable software with measurable payback inside a quarter. The result is the first structural opening in two decades to materially re-rate operating margin in this category — not through cost compression, but through productivity expansion.
A clearer path to a stronger, more valuable business
We work with management to expand margins meaningfully over the first 24 to 36 months — not through cost cutting, but by giving the team better tools. Three things compound: routine, high-volume work gets automated so people can focus on higher-value tasks; the experience of senior operators gets captured and shared across the team instead of walking out the door; and real-time visibility into the business makes pricing, scheduling, and capacity decisions sharper. Every part of the plan is discussed openly before close and tracked against clear milestones together.
A real partnership, built for the work ahead
A multi-year transformation only works if everyone is rowing in the same direction. That’s why we take majority positions — not to take over, but to give the business the runway, capital, and decision-making clarity it needs to execute a real plan. Management stays in the business and shares meaningfully in the upside. Founders who want to step back can; those who want to stay involved are welcomed. The opportunity to build the leader in this category is open now, and we’d rather build it together than watch someone else.