Potential Rollup (Not sure if there is a bigger play here or not)
October 08, 2024
by an investor from University of Iowa in Chicago, IL, USA
I am in Chicago and I run a few lead Companies. I work closely with 4-5 other Companies and we have been talking about potentially doing some sort of rollup (maybe IPO). Top line is 100M+ right now (between 2-3 of us), and expected to grow from there. (Mainly in the Insurance and Debt space)
Not sure where to start with this so I figured I'd post in here to see if anyone had any experience taking already existing Companies that generate a lot of Cashflow and rolling it up into a much larger play.
This is COMPLETELY out of my World, but I figured People in here may be able to point me in the right direction, or tell me I'm insane for even considering it. Idk - I figured it's worth a shot to ask to see if there is a much larger play to be made here than just cash flowing these Companies year in year out.
from University of Notre Dame in Dublin, OH, USA
Roll-ups can be difficult to execute. If you pursue this path, you may want to partner with a private equity sponsor. I can envision a scenario where you and the other owners merge businesses and then sell a majority stake of the combined company to a PE firm while rolling a meaningful amount of equity###-###-#### %) and staying on for a second bit at the apple.
An IPO likely wouldn't make sense -- $100mm topline would be at the lowest size thresholds for an IPO and the regulatory burdens of being public are very significant.
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA