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Frazis Capital Partners's avatar

Great note

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Florian Kronawitter's avatar

Thank you!

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Miha Suzi's avatar

Thanks Florian, this post is gold! Made me start thinking about what the AI influenced future will really look like 🙏

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Florian Kronawitter's avatar

Thanks so much :)

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Richiv's avatar

Clear, concise, logical description of AI roadmap. 🙏

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Louis Philippe de S Bergeron's avatar

Fantastic piece and agreed on your "Current market views"!

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Florian Kronawitter's avatar

Thank you!

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Romlev's avatar

Maybe the best golden shot will be roll up of SME software devlpt with AI as a scale up because i saw a lot of shitty soft in SME in TS, audit and boutique m&a

A lot of small pe player in the 0,5m ebitda in france

Final frontier is below but well no structured, often dependant of a big client, no proprietary product, too dependant of a keyman that act like a father with subordinates

Also mbi +former big corp exec = receipt for disaster

You cant fake in small business so pool of operator much less wide than could be guessed in prime view

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Andy Fately's avatar

Really interesting piece Florian. I guess the trick as an investor is to figure out how you can take advantage of this emerging concept. I agree that SME's are ripe for efficiency improvements, but I sense it will take a very long time before there is a significant change in ownership and therefore attitudes to how things should be done. remember, a small company that generates $10mm has probably been around for quite a while and the owner/operator is pretty happy with the current setup. getting that to change will be tough

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Siku Adam's avatar

As always another thoughtful article. AI does seem to be helpful for rollups but also for smaller companies in general. There should be a bigger productivity boost for them relative larger firms.

Another potential AI outcome in the maintenance, repair world is more “power by the hour” type contracts.

Aviation OEMs have been moving in this direction for the last couple of decades.

To do it right requires lots of data and predictive models. AI should allow this to scale to many more industries.

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The Silent Treasury's avatar

Hello there,

Huge Respect for your work!

New here. No huge reader base Yet.

But the work has waited long to be spoken.

Its truths have roots older than this platform.

My Sub-stack Purpose

To seed, build, and nurture timeless, intangible human capitals — such as resilience, trust, truth, evolution, fulfilment, quality, peace, patience, discipline, relationships and conviction — in order to elevate human judgment, deepen relationships, and restore sacred trusteeship and stewardship of long-term firm value across generations.

A refreshing take on our business world and capitalism.

A reflection on why today’s capital architectures—PE, VC, Hedge funds, SPAC, Alt funds, Rollups—mostly fail to build and nuture what time can trust.

“Built to Be Left.”

A quiet anatomy of extraction, abandonment, and the collapse of stewardship.

"Principal-Agent Risk is not a flaw in the system.

It is the system’s operating principle”

Experience first. Return if it speaks to you.

- The Silent Treasury

https://tinyurl.com/48m97w5e

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Attention's avatar

Spot on calls ex-post.

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solarperimeter's avatar

The Morgan Stanley stock performance chart presumably offers correlation with revenue and profit for the depicted companies.

The trends depicted for this earlier period seems to mimic some of the observable patterns today, for AI, given my own anecdotal experience.

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francois du chastel's avatar

Excellent Florian, keep up the good job!

By the way Scott L. is looking for you for a mark up to bring to DTP :-)

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Maverick Equity Research's avatar

thank you Florian, have a great day!

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