How To Build Your Own Roll-Up

When Acquisition Entrepreneurs begin their business buying journey, they’re usually focused primarily on sourcing and closing a deal. And that makes sense because, quite simply, it takes a lot of work to acquire a business.

There are a number of paths towards an exit, but they all involve growing the business first. That may mean systematizing it until it runs so efficiently that you can sell it to a private equity buyer, or it may mean acquiring more businesses to create a roll-up that can be sold for an even higher multiple or eventually taken public.

At Acquira, we don’t consider the job complete until that Acquisition Entrepreneur can exit the business for more than what they paid. To learn more about how we can help with your exit strategy, schedule a call with us today.

What Is A Roll-Up Acquisition?

There are many reasons that entrepreneurs would choose to implement a roll-up strategy. Whether it’s to stimulate growth, expand their offerings, or acquire new talent, businesses of all sizes have used the approach for decades to build value.

A roll-up – sometimes referred to as a “tuck-in” – is when a business buys another company in the same market and merges it into its own operations. These mergers combine multiple small companies into a single large entity that can take advantage of its larger size.

For Acquisition Entrepreneurs, roll-up acquisitions offer the potential to exit the business at a much higher multiple than what they paid.

To learn more about how Acquira can help you build a roll-up strategy: schedule a call with us today

The Strategy

There are a number of reasons to pursue a roll-up strategy, including:

  • Increased purchasing power
  • Multiples arbitrage
  • Economies of scale
  • Rapid EBITA growth

If you’re interested in pursuing a roll-up strategy, schedule a call with Acquira today to learn how to get started.