What is GSP?

Alex Sloane on the right pace of risk-taking in a roll-up strategy.

“If every deal is right in a roll-up, we're either not taking enough risk or not moving fast enough.”

Technology partnerships (estimating software, labor management tools, site selection) lift organic growth rate by 200 to 300 basis points in GSP consolidations.

“We have found that through partnerships with our operating partners and management teams and founders with tech implementation, whether it's estimating software or labor management tools or site selection, we're able to increase that organic growth rate typically by two or 300 basis points.”

Matt Perelman explains why founder-owned businesses resist technology investment: they conflate cash in the bank with business success, and will not act even on an 18-month payback unless given a detailed financial case.

“How many founders we come across and we'll show them what tech adoption can do to their business. Their first reaction is, "Yeah, but I don't want to invest $2 in whatever enterprise solution you guys are talking about." We'll show them that the $2 million investment yields an 18-month payback, and here's how we can finance it.”

Alex Sloane on pricing discipline in buy-and-build deal sourcing.

“We are actively avoiding categories where the bolt-ons are trading outside of our price range.”

GSP treats a confident technology platform as table stakes before committing to any consolidation, a precondition rarely discussed in traditional lower-middle-market buy-and-build underwriting.

“We will not invest in a consolidation unless we have a lot of confidence in the tech platform. That is table stakes for us.”

GSP uses a proprietary incentive structure called 'super options' to reward management teams for returns above 3 to 4x, worth watching as a model for aligning founders in roll-up strategies.

“We call them super options.”