Since 2017, more than $2.9b has been invested into at least 100 AM&R software businesses, whereas 200+ have been acquired by 150 buyers for an aggregate transaction value of $10.7b
Sector Report: Asset Maintenance & Repair
GCA is launching coverage of “Asset Maintenance & Repair” (AM&R) software, a thematic approach to identifying and analyzing enterprise software companies among 22 vertical markets – from Auto Repair to Utilities – in which complex equipment maintenance and repair is a core system function.
Our targeted coverage is based on three dimensions:
- Market verticals dependent on complex equipment maintenance & repair to function, requiring specialist technician skill & training, labor scheduling and/or routing, and large BOM/parts catalogs necessitating inventory management of long-tail SKU items
- Software buyer work environment, in which assets are either transported “inbound” to a repair facility or repaired in the field (repair technicians are dispatched “outbound” to the asset)
- Customer focus, either Commercial- or Consumer-focused
Since 2017, more than $2.9b has been invested into at least 100 AM&R software businesses, whereas 200+ have been acquired by 150 buyers for an aggregate transaction value of $10.7b ($250m average transaction value).
Common investment themes have included:
- High revenue retention among entrenched, mission-critical systems
- Strategic shift to focus on profitability and/or operational efficiency over production volume
- Rapid customer adoption of the automation of manual processes (digital transformation) in labor-intensive service markets
- Phase 2 of early automation adopters now embracing further productivity gains through AI optimization
- An aging workforce – compounded by a skilled-labor gap – driving demand for knowledge retention systems