We're interested in whether the opportunity set is large enough for Danaher to continue acquiring companies and achieve their targeted inorganic growth rate over a long period, say, 10 to 15 years.

If you consider Danaher, which is now around 25 billion after the Veralto split, and Thermo Fisher, which is about 40 billion, these two companies almost monopolize half of the Life Sciences market. This indicates that market consolidation has been rapid, with Thermo and Danaher as the primary acquirers. Consequently, there aren't many targets left, as Danaher prefers to acquire billion-dollar companies to make a significant impact.

We're interested in whether the opportunity set is large enough for Danaher to continue acquiring companies and achieve their targeted inorganic growth rate over a long period, say, 10 to 15 years.

Danaher operates on three principles. The first is the attractiveness of the market. The second is to find an asset within that attractive market that is at least among the top three players. The final rule is due diligence, ensuring the asset is healthy and agreeing on its valuation. They are quite strict about these rules.

We're interested in whether the opportunity set is large enough for Danaher to continue acquiring companies and achieve their targeted inorganic growth rate over a long period, say, 10 to 15 years.

So, while they have many rules to check and ensure the quality of potential acquisitions, there is a scarcity of assets. Sometimes, they act out of necessity, acquiring what is available. This is almost like rule number one