#039: The Story of Epicor, Regulatory Capture Benefits Incumbents, vSaaS Multiples

One vSaaS breakdown. One biz story. One 'how to'. In your inbox once a week.

Sep 25, 2023

Epicor

3 MIT grads founded the ULTIMATE boring business.

Providing software for manufacturing businesses, the company was recently acquired for $4 BILLION.

This is the story of Epicor:

Epicor is a software company that provides ERP solutions for various industries. It was founded by three MIT graduates who wanted to create a better way to manage business processes. They were inspired by the concept of “epicor”, which means “the best of everything” in Latin.

They started by developing software for the automotive industry. A highly complex industry, they new software could help. So they focused on a some key areas:

Epicor also was one of the pioneers of the SaaS business model. In their old days, software was purchased in it's entirety, up-front. They modified that, where customers paid a lot smaller fee on a recurring basis.

In recent years, the company has grown through acquisitions and now serves over 20,000 customers in more than 150 countries. They have over 4K employees and generate $900M+ in annual revenue.

They've also expanded outside of automotive manufacturing, and offer software solutions for a lot of other verticals:

Most of their revenue comes from big enterprise companies, but they do service businesses of all sizes:

They've also expanded globally, with customers in a lot of different countries;

Epicor’s mission is to be the essential partner to the world’s most essential businesses. It helps them make, move, and sell the things everyone needs, from aerospace and automotive to distribution and retail.

Their Enterprise Resource Planning (ERP) solutions cover all aspects of business management, from accounting and supply chain to manufacturing and e-commerce. They also provide analytics and insights to help customers make better decisions and grow their businesses.

They are the ULTIMATE "boring" business. Providing "boring" software to industries that are hypercritical to our every day lives. Today, EPICOR is a key operating system for many businesses. They've come a long way from some humble beginnings. It's been a joy to watch.

One ‘How To’:

Regulatory Capture Benefits Incumbents

Bill Gurley’s talk at the All In Summit is absolute gold. If you are playing in a regulatory space you must watch this. Right away.

One Vertical SaaS Breakdown:

Public vSaaS Company Multiples

What are the revenue multiples of a few publicly traded vertical software companies? They are pretty healthy...

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