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IP Interview
Published June 19, 2024

Topicus Healthcare: Organic Growth Case Study

Executive Bio

Former Managing Director at Topicus

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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Yes, but everyone says that Topicus is the golden child for organic growth when you read CSI. They praise how good they are at it. Are they really that good, and if so, why?

They are quite good at it. However, I think they could leverage it much more. They could achieve much higher margins. Initially, they started with three shareholders, all of whom enjoyed buying software and building the company. They all had a technical engineering background. The three owners, Henk Jan, Harry Romkema, and the other individual, were very naive initially. This naivety led them to invest heavily in specific verticals. They were aligned, and they didn't have shareholders or private equity, which often complicates matters. They had deep pockets in sectors where it's very difficult for new market players to enter. They quickly understood this and chose the right domains and sectors to invest in heavily. This strategy gave them an advantage over other companies that didn't have these deep resources but wanted higher margins. This is how they developed these verticals.

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