Constellation Software Inc.

What does the future hold for the VMS behemoth?

Table of Contents

We’re pleased to wrap up 2024 with our deep dive into Constellation Software (CSI)! This Canadian serial acquirer doesn’t need much introduction, but as it’s become less vocal about its strategy (scrapping quarterly conference calls, the annual President’s Letter…), the question is: what does the future hold for the VMS behemoth?

Our write-up will cover the following topics:

I. Introduction to CSI - Decentralization & Track Record

II. Organic Growth vs. M&A

III. Incentives and Management Team

IV. ROIC vs. ROIIC vs. IRR - Smaller vs. Larger M&A Deals

V. Spin-Outs: TOI and LMN - Impact on FCFA2S

VI. Year-to-Date Performance

VII. Looking Ahead

VIII. Base Case Valuation Model - Drivers and Risks

IX. Conclusions

Without further ado, let’s get started!