Tree and Leaf Partners targets education and healthcare for acquisitions
Andy Galpin · 27 - Driving Impact: Balancing Metrics, Culture, and AI in Business with Tree and Leaf Partners Founder Andy Galpin · Feb 25, 2025 · at 2:14
Andy Galpin, founder of Tree and Leaf Partners, discusses his fund's target acquisition sectors with host Christian Marquez.
0:00 / 0:07exact quote · 7.5s
720p mp4 · rendered on demand · StarZero watermark
“We focus on two kind of core industries that are already very naturally purpose-driven, the education and the healthcare sector.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Andy Galpin
Galpin argues many software companies wrap OpenAI APIs as marketing checkboxes
“A lot of the companies I see that are using AI in their core product and are, I would call it cheating a little bit. They just integrate with the open AI API and they're not doing much really innovative inside the product with that AI, but they are using it so…”
Galpin predicts reduced government education involvement will create private sector opportunities
“It definitely will open up an opportunity for the private sector to step in and provide more in that space. And where, where the vacuum is left from kind of government stepping back and being less involved.”
Tree and Leaf requires target companies to have 10-20% EBITDA margins
“We don't invest in, in companies that haven't broken even and can't demonstrate a clear path to growing that profitable side of the business, but we look for kind of 10 to 20% EBITDA margins on these companies as well, and to complement some level of growth”
Galpin says fast growth with high churn signals the wrong solution
“If revenue is growing fast, we're bringing on new customers. They seem to like the idea. There's a very obvious problem it's solving, but then after a year, all the customers are churning at the other end. It probably suggests that we found the right problem, …”
Potential healthcare privatization changes how Tree and Leaf values Medicare-dependent companies
“It will definitely change how we kind of value companies depending on the area they're focused on and how they get paid. And if the government is going to be stepping back and we're relying more on private services, then we'd be more concerned around Medicare …”