Combine and conquer – The big advantages of roll-ups

Description

Abstract: Even the best-run middle-market companies eventually face size-related obstacles — including difficulty raising cash for strategic initiatives and an inability to negotiate better prices and terms with suppliers. A roll-up, where several smaller companies in the same or similar industries combine to form a larger company, can provide a solution. Roll-ups can result in an immediate increase in value. However, inattention to consolidation issues can lead to disaster, so companies should approach this strategy with caution.