Ownership is the New Sales

Fragmented industries like HOAs, BPOs, and accounting firms are slow to adopt AI tools. Acquire and operate underinvested businesses directly rather than selling into them.

The Insight

Some industries are so fragmented and slow-moving that selling software into them is nearly impossible:

• •HOA management: Thousands of small operators, minimal tech adoption
• •BPOs: Low margins, resistant to change
• •Accounting firms: Conservative, partner-driven decisions
• •Property management: Fragmented, local players

These industries won't buy AI tools—but they'll sell their businesses.

The Strategy

Instead of building software and trying to sell it:

1. •Acquire existing businesses in fragmented industries
2. •Implement AI operations that dramatically improve efficiency
3. •Roll up the industry using technology-driven competitive advantage
4. •Capture the full value of AI transformation, not just software fees

Why This Works

• •Acquisition is easier than enterprise sales in fragmented industries
• •You control the technology adoption decision
• •Full margin capture (operations, not just software)
• •Rollup creates additional scale advantages

Examples

This model works for industries where:

• •Average business size is small
• •Technology adoption is low
• •Owners are approaching retirement
• •AI could dramatically improve operations