Roll-Up Investing (Combining Finance and Entrepreneurship)

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Күн бұрын

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Roll-Up M&A is an investment strategy where you buy similarly related businesses and combine them under a single corporate entity. This approach helps you benefit from scale, diversification, and valuation arbitrage between small and larger businesses. Roll-Ups are becoming an increasingly popular career path for investment bankers, private equity investors, and consultants as it combines dealmaking with entrepreneurship.
0:00 - 1. What is the Roll-Up M&A Strategy?
3:15 - 2. Industries and Roll-Up Examples
6:59 - 3. Pros and Cons of Roll-Ups
Peak Frameworks is a business career prep service started by Matt Ting and Patrick Fong, who have each spent several years working in investment banking and private equity in New York and Silicon Valley. Matt and Patrick met at Evercore, a top tier investment bank, and over the years have tutored and coached dozens of candidates to land their dream business job.
Matt Ting: / matthewting
Patrick Fong (HBS 2021): / patrick-fong-0b773041
#RollUps #Investing #PeakFrameworks

Пікірлер: 30

@FrenchPaperz 2 жыл бұрын

In Europe, a lot of PEs are buy-and-building platform groups (rehabilitation centers, dental practices groups etc.). Very interesting deal making and great opportunities working at the platform and acquiring new add-ons.

@doziee.1093 2 жыл бұрын

Fantastic video! A roll-up career path is definitely on the table for me as I’m trying to blend banking, consulting, and entrepreneurship skills for long term success.

@JordaanFPS 2 жыл бұрын

im an ib analyst in healtchare M&A (MM). some PE funds have so many and it is insane. extremely interesting

@laithsabunchi2632 2 жыл бұрын

Awesome content as usual !

@user-wr4yl7tx3w Жыл бұрын

This channel really provides a lot of insights.

@aaronmatos5581 4 ай бұрын

Very underrated. New subscriber here!

@likkledee3 2 жыл бұрын

Another industry that gets a lot of interest from PE to roll-up is insurance brokerage. Excellent video, Matt. I am sad that you did not mention that *every* single PE firm applies a *proprietary* "bUsiNes SysTem" to ensure value creation from all acquisitions. That is the secret sauce!!

@PeakFrameworks 2 жыл бұрын

Lmao

@ShinichiroSatoshi 2 жыл бұрын

Your explanation of information asymmetry was a light bulb moment for me haha

@jd5787 Жыл бұрын

Hi! Any good pointers for VCP (value creation plan)? Thanks!

@BradCarr_ 2 жыл бұрын

QUESTION: Any examples/case studies on roll-ups by small private equity firms? Thanks!

@PeakFrameworks 2 жыл бұрын

I don't know too many done by "small" PE firms, but a couple of examples that you might be able to research to find more: - Ontario Teachers' Pension Plan acquired PhyMed, an anesthesia service provider - ABRY Partners managed a roll-up of Beacon Pointe in the financial advisor space - Oak Hill's acquisition of Berlin Packaging, a packaging product supplier The smaller roll-ups typically don't get publicized as well, so don't have as many tangible examples.

@thomaspomerleau9815 2 жыл бұрын

@@PeakFrameworks Feel free to check out what E360S is doing in the waste business, following the path of GFL. There's also many healthcare companies, see CBI Health and a couple others.

@axed11 2 жыл бұрын

There are many in Australia Crescent Capital Partners specialises in healthcare Fitness and lifestyle group - gyms - Quadrant PE AVC - Pubs - KKR Greencross - vet clinics - TPG Abano - dental - BGH Capital Allity - aged care - Archer Capital AMA group - smash repairs - listed Healthia - allied health - listed The “buy and build” strategy is typically employed where a larger business is acquired / taken private at a higher multiple in order to provide a management platform for a series of smaller acquisitions at lower multiples

@FirstClassConstructionGroup 4 ай бұрын

Hey there, I’m an operator in Tampa Florida looking to apply this method in my area with a specific service based business. I can acquire said businesses with physical assets for less than 1X annual revenue. How can I find someone to partner with me on this?

@mohil6 9 ай бұрын

who are the investors? are they traditional search investors?

@ameenmuhammed4745 2 жыл бұрын

Hey your videos are extremely valuable.Im a highschool student from India and i want to get into this industry but i cant find relevant content on how to do it from a country like india.Maybe a chat with will be so useful.hope youll reply.

@vijaylaxmi2650 2 жыл бұрын

Hey man liked your videos, can you tell wether ms in finance is better or MBA in finance for associate role and long term growth?

@PeakFrameworks 2 жыл бұрын

I like MBAs better. Seems like the recruiting placement is generally a lot better.

@blakeandrews3613 2 жыл бұрын

Hey Matt, just wondering, when it comes to the investment banking industry in Toronto, who is bigger in terms of number and size of deals: big 5 Canadian banks or bulge bracket regional offices? For example, RBC Capital Markets or Goldman Sachs Toronto office?

@PeakFrameworks 2 жыл бұрын

The Big 5 banks tend to do way more deals and offer more products. A lot of the globals don't do as much lending or other financial products out of satellite offices. That tends to be one of the bigger cons for working for a global TO office. I just Googled to find this, which is pretty useful: data.bloomberglp.com/professional/sites/10/Bloomberg-Canada-Capital-Markets-Preliminary-League-Tables-Q1-2020.pdf

@blakeandrews3613 2 жыл бұрын

@@PeakFrameworks thanks man! I always appreciate your responses!

@marcolu5155 2 жыл бұрын

Hi Matt . Do you think Ivey business schools placements in New York will rebound or continue to go down? (Visa issue). I will be attending western with aeo next fall

@PeakFrameworks 2 жыл бұрын

Hard to say, but if you're Canadian, you won't really be able to avoid it even if you go to a different school. Even if you go to Harvard, you'll still get dinged on account of your visa if it really is an overall issue.

@noahramonweber9924 2 жыл бұрын

What‘s the difference between a roll-up strategy and a buy & build strategy? Does it essentially describe the same?

@PeakFrameworks 2 жыл бұрын

Yes, they're quite similar. I think one difference is that "buy and build" often starts with one large platform deal and then buying similar businesses (like a competitor in a specific geography). Roll-up tends to describe businesses where you acquire a ton of individual practices / units. But the lines are very blurry and I don't think there are strict definitions. I get the sense that some PE people just wanted to re-brand roll-ups into something that sounds more... productive.

@Mav0585 2 жыл бұрын

Can you get commercial loans for a roll up, in addition to a traditional capital raise?

@PeakFrameworks 2 жыл бұрын

I think you can get small business financing for your first few deals and then a larger commercial loan when you reach scale.

@mateom7056 Жыл бұрын

This video was one of the first that I saw on my journey and today I submitted LOI on my first business acquisition. Looking to roll up IT services in Canada!

@brayaran7370 9 ай бұрын

Nice! What firm do you work for?