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And we know the stats about how big that generation was and how many of these companies exist. If you compare the next 10 years to the prior 10, do you think the supply side of the story is better? There will be more of them that are more fit to be bought. What trends do you see, if at all, in the base of companies and what the motivations of the sellers are?

And we know the stats about how big that generation was and how many of these companies exist. If you compare the next 10 years to the prior 10, do you think the supply side of the story is better? There will be more of them that are more fit to be bought. What trends do you see, if at all, in the base of companies and what the motivations of the sellers are?

But there's a lot of businesses out there that need to transition. I have lots of questions that are under the umbrella category of technology. The first is related to the types of businesses that you do and don't see people buy. And we have such a big sample now, like I'm sure there's some central tendencies.

But there's a lot of businesses out there that need to transition. I have lots of questions that are under the umbrella category of technology. The first is related to the types of businesses that you do and don't see people buy. And we have such a big sample now, like I'm sure there's some central tendencies.

You always hear roofing or HVAC or like stuff related to the home or basic things that in 10 years are still going to be roofs and probably an AI won't install them. If it does, you know, all bets are off. Do you ever see people buying more traditionally software or technology-driven businesses as searchers at all?

You always hear roofing or HVAC or like stuff related to the home or basic things that in 10 years are still going to be roofs and probably an AI won't install them. If it does, you know, all bets are off. Do you ever see people buying more traditionally software or technology-driven businesses as searchers at all?

And maybe just say a word about the central pockets or tendencies of the kinds of businesses that meet the three criteria or four criteria that you laid out earlier and what doesn't, despite being important businesses.

And maybe just say a word about the central pockets or tendencies of the kinds of businesses that meet the three criteria or four criteria that you laid out earlier and what doesn't, despite being important businesses.

One of the things that we've been studying recently is Asurion, thanks to a project with Will Thorndyke covering that company. And it makes me wonder how often you've seen that, what I'll call extreme outlier venture type multiple of capital outcome from this space versus the more like lower variance, whatever the 33% a year for 10 years math is for MOIC.

One of the things that we've been studying recently is Asurion, thanks to a project with Will Thorndyke covering that company. And it makes me wonder how often you've seen that, what I'll call extreme outlier venture type multiple of capital outcome from this space versus the more like lower variance, whatever the 33% a year for 10 years math is for MOIC.

How often are you seeing true outliers emerge from this style of investing in that bizarre category of Asurion, which you could put up against any venture investment of all time?

How often are you seeing true outliers emerge from this style of investing in that bizarre category of Asurion, which you could put up against any venture investment of all time?

One of my favorite lines of yours, Royce, I think it was you that said this to me, which is that the lower middle market is the only industry in the world where your best competition leaves every year. Yes, that's right. I did say that. Can you talk a little bit about that observation and dynamic?

One of my favorite lines of yours, Royce, I think it was you that said this to me, which is that the lower middle market is the only industry in the world where your best competition leaves every year. Yes, that's right. I did say that. Can you talk a little bit about that observation and dynamic?

Yeah, it's a fascinating dynamic at play, which I guess makes it sort of an evergreen opportunity set. Back to thinking about the companies, I'm curious what the things are that are the most common, subtle red flags that through pattern recognition

Yeah, it's a fascinating dynamic at play, which I guess makes it sort of an evergreen opportunity set. Back to thinking about the companies, I'm curious what the things are that are the most common, subtle red flags that through pattern recognition

And just seeing a million of these reps through your students and directly yourselves, you've built up over time of not the obvious, like terrible customer concentration or completely non-recurring, you know, the opposite of the things that you've said, but more just the little ones like, oh, watch out for this thing or this thing. Maybe we'll call them yellow flags, not red flags.

And just seeing a million of these reps through your students and directly yourselves, you've built up over time of not the obvious, like terrible customer concentration or completely non-recurring, you know, the opposite of the things that you've said, but more just the little ones like, oh, watch out for this thing or this thing. Maybe we'll call them yellow flags, not red flags.

What are some of the most interesting things in that category?

What are some of the most interesting things in that category?