:Looking into the space and keen to connect with other people that are focusing on it..
Any specific tools people are using for it both to screen the market/opportunities as well as post acquisition?
Roll Ups
by an investor from Universidade Católica Portuguesa - Catolica Lisbon School of Business and Economics
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
Since a roll up has significant added costs it requires a rapid scale up of acquisitions to justify it.
1. You must have a compelling story for sellers to consider you over other buyers, preferably even those not actively looking to sell.
2. You must have a strong team in place and leverage that team to create automated processes or you risk being buried in a mountain of work.
3. Ideally you want your model to be a major improvement over private ownership, which enables for organic deal flow.
4. Ideally you should have multiple levers of growth and not just rely on creating value by adding acquisitions.
5. If working with a highly fragmented industry with lots of smaller players it helps to have marketing as a core competency, since you can't rely on one or two major deals to grow, you really need to rapidly expand.