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For all those not familiar with rollups….. A rollup is a technique
used by investors where multiple small companies in the...
An investor faced with an opportunity to invest in two
competing companies may reduce risk by simply investing in
both and...
Build a full-capability company, when it would be too costly or
time consuming to develop the missing pieces through inter...
With plenty of family office money sitting on the sidelines
awaiting for each other’s next move, we at Blackhawk Partners
...
Read More:
Challenges and Opportunities we see when investing in rollups
http://www.blackhawkpartners.com/Blog.aspx?id=17/...
The challenges and opportunities when investing in rollups
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The challenges and opportunities when investing in rollups

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An investor faced with an opportunity to invest in two competing companies may reduce risk by simply investing in both and merging them. Rollups are often part of the shakeout and consolidation process during an economic downturn or as new market sectors begin to mature.

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The challenges and opportunities when investing in rollups

  1. 1. For all those not familiar with rollups….. A rollup is a technique used by investors where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies of scale. Rollups also have the effect of increasing the valuation multiples the business can command as it acquires greater scale. Rollups may also have the effect of rationalizing competition in crowded and fragmented markets, where there are often many small participants but room for only a few to succeed.
  2. 2. An investor faced with an opportunity to invest in two competing companies may reduce risk by simply investing in both and merging them. Rollups are often part of the shakeout and consolidation process during an economic downturn or as new market sectors begin to mature. Rollups of complementary or unrelated companies are also done to
  3. 3. Build a full-capability company, when it would be too costly or time consuming to develop the missing pieces through internal expansion. Blending companies have different financial metrics, often to make the combined company attractive for investment, mergers and acquisitions, or an initial public offering.
  4. 4. With plenty of family office money sitting on the sidelines awaiting for each other’s next move, we at Blackhawk Partners are zeroing in today on two specific plays (Private Placement Investment Programs and Private Equity Roll-ups) to attract the “smartest” money out there to the fore and have so far gathered since the beginning of the year over $640 million in assets in this regard While the benefits of Private Placement Investment Programs have been widely discussed in the previous blogs, we thought of elaborating in here why Private Equity Roll-ups is our favorite way of acquiring companies along with the challenges and opportunities we face every day using this acquisition technique.
  5. 5. Read More: Challenges and Opportunities we see when investing in rollups http://www.blackhawkpartners.com/Blog.aspx?id=17/On-theChallenges-and-Opportunities-we-see-when-investing-in-rollups Follow Me @ Thank you

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