The roll-up thesis: durable growth, margin expansion, recurring-revenue quality, prudent leverage and disciplined capital allocation.
The roll-up thesis is proving out: 3 integrated cohorts delivered +0pts of EBITDA margin and leverage sits at 1.7x against the 5.5x covenant. The remaining value is in the 4 unintegrated cohorts — finish synergy capture before exit diligence prices it.
6 of 6 headline metrics improving vs prior · still off target: Revenue $30M vs $32M, EBITDA Margin 12.8% vs 14.0%, Rule of 40 33 vs 40
Sets deal capacity and refinancing risk.
4 of 7 cohorts sit below 80% synergy capture; integrated cohorts already show +0pts of margin — the same playbook is unbanked EBITDA until applied.
Hold management to 90-day synergy recovery plan; track at next board meeting.
Synergy at 78% of model; integration 80% complete.
Push subscription/Contract Compliance Dashboard attach on Integration installs.
Recurring 40% vs 45% strategic target; Integration BU dilutive.
Consistent top-line growth with steady margin expansion.
Proof of the roll-up: EBITDA uplift and synergy realization per acquired brand.
| Acquired brand | Year | Revenue | ARR | EBITDA uplift | Synergy | Status |
|---|---|---|---|---|---|---|
| Pune Warehouse | 2021 | $1.28M | $0.45M | 0.34%→0.53% (+0.19) | 92% | Integrated |
| Transport Management System (TMS) | 2021 | $0.83M | $0.3M | 0.3%→0.49% (+0.19) | 90% | Integrated |
| Mumbai Fulfilment Ops | 2022 | $3.62M | $1.96M | 0.41%→0.6% (+0.19) | 88% | Integrated |
| Warehouse Management System (WMS) | 2023 | $2.19M | $0.72M | 0.38%→0.49% (+0.10999999999999999) | 74% | In progress |
| Collections Team | 2024 | $1.55M | $0.53M | 0.34%→0.41% (+0.06999999999999995) | 55% | In progress |
| Autonomous Reroute | 2024 | $1.4M | $0.49M | 0.34%→0.45% (+0.10999999999999999) | 78% | In progress |
| Audit & Compliance | 2024 | $1.09M | $0.34M | 0.3%→0.34% (+0.040000000000000036) | 40% | Early |
Integrated cohorts (AFA, Firecom, DavEd) show ~0pt EBITDA expansion post-integration; newer cohorts (ISC, Signet) remain early with synergy capture in progress.
Covenant headroom funds the continued M&A program; cash generation supports debt service.
High-materiality external signals and competitive M&A from the adapter feed.