Narrow Software, Real Budgets

Executive summary preview

Prioritise narrow software that fixes costly integration, compliance or spending problems, rather than another generic workflow tool. Generic tools compete for discretionary spend. Narrow tools compete for budget that already exists: the integration plan, the diligence line, the compliance programme, the cost-out target.

Each opportunity is scored on the strength of its evidence, how clearly a budget holder feels the cost of the problem, and how fast a narrow first product could earn revenue. Three sit in the build-first zone.

The commercial test for all three: a paid pilot with an agreed baseline, access to the customer's real systems, and proof that the same build works for a second customer with little rework.

Key findings

• Integration debt is a clear commercial problem: acquisition-led groups inherit separate systems, suppliers and stock records.
• Repeatability matters more than breadth. Operating partners need a focused workflow they can roll out across a portfolio.
• Crowded software categories need a sharper entry point, such as cancelled spend or recovered revenue rather than another detection dashboard.
• Some opportunities need operational support or deep specialisation, particularly hospital discharge coordination and agent controls.

Research figures

72.9%

of US PE buyouts in 2025 were add-ons

94%

of audited M&A deals had open-source licence conflicts

>40%

of agentic AI projects expected to be cancelled by end-2027

The opportunity map: ten opportunities

1. Roll-up purchasing
2. PE workflow automation
3. Provenance diligence

7 more items fully covered in the report.

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