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What has changed in five years?

The level of competition. Constellation has strict hurdle rates and buy on an internal rate of return basis rather than on multiples. If you are at 24.8%, you need to find a way for it to be 25 or that deal will not happen. In the private equity world, if you're short, you simply throw in more money to get the deal done. That's the reason for their return and share price performance. They're disinterested in making 15% IRR; if it is not 25%, you hold your nerve and look for other businesses.

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Is that a source of frustration for people like yourself?

I began to notice, in the UK, you're competing with Access Group, Advanced, Iris, ClearCourse and many others who have realized vertical market software businesses are a great investment. The CSI share price makes it suddenly attractive to people, as it started at $18 and is now north of $2,000, which everybody wants a piece of. It is harder to compete against people who are willing to make lower returns. I definitely felt that during my final 18 months. Despite that, CSI always win when a business is distressed because most people buy businesses which are growing quite well. A flat or shrinking, poor quality business, doesn't always translate into a poor-quality investment. At the right price, it could still be a good investment, and in those businesses, they have a free run because they know where they can tuck it in and make it more efficient.

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