two business models:
- increasing sales,
- expanding the workforce,
- establishing effective management structures,
- exploring new markets.
- It requires continuous competition, a battle for survival, and adapting the business model to the changing market conditions
- As the owner of the business, your income can range from $100k to several million dollars per year
- Typically, the value of the business is not very high, and the owner does not actively consider selling it. They may decide to sell when they feel tired and want to get rid of it or when they plan to retire
- It involves a relatively short cycle, typically lasting 3-5 years from the purchase to the sale of the business
- It offers high returns upon exit, ranging from several million to hundreds of millions of dollars
- There is a possibility of acquiring businesses without using personal capital, as professional investors are willing to finance such deals
- It has a high entry barrier, requiring expertise in the specific industry, understanding the business sale market, proficiency in mergers and acquisitions, establishment of management companies, and more
Companies from various industries are already implementing this strategy
Perhaps you have noticed that in your industry, there are companies selling or acquiring businesses. You may have heard about significant deals happening within your industry but are unsure about how it all works.
Why is this strategy not
well-known among founders?
There is limited public information available about roll-ups. It is a non-public domain, and most transactions are not documented online. It is unclear how to execute roll-ups without experiencing setbacks
Why isn't everyone doing this?
Specific knowledge is required:
- How to read the financial documentation of the target companies
- How to evaluate companies
- How to negotiate and make successful purchase offers
- How to attract investments
- How and to whom to sell the roll-up
It is necessary to establish management in the acquired companies and consolidate them into a unified structure:
- Replacing the owner of the acquired company with a professional manager without disrupting operations to retain the team
- Ensuring that the consolidated companies operate according to unified standards with centralized expertise functions.
500 Rollups Team have expertise in management. We have helped build 1000+ platform companies in 115+ niches
500 Rollups is for or those who:
- have expertise in a specific industry
- speak the same management language as us
- want to grow not through the cash cow strategy, but through equity
we offer to build rollups together and earn from the business sales model
The rollup strategy is the perfect area for development, as we already possess all the necessary resources and expertise. Most importantly, there are over 1000 business owners who are experts in their respective fields and have already built platform companies. They are ready to take the next step forward.
Who are we looking for?
- When purchasing a company, it is necessary to assess how it operates and understand the numbers
- One needs to determine the authenticity of these numbers
- Small companies often lack structure, resulting in financial and operational disarray. A system must be established
- The selling owner's lack of financial understanding hinders the clarity of the financial picture
500 Rollups Team guide you through the entire roll-up process to ensure your success
We have everything you need to excel in the M&A strategy, providing you withsolid practical knowledge on roll-ups
the roll-up mechanics work.
and brinvestor management
due diligence
of roll-ups
office
But most importantly, we will become your partner
with whom you can pursue
the roll-up strategy
This is an opportunity to take a fundamentally new path. While you may think it's not for you, your industry competitors are acquiring companies, scaling up, and capturing the market.
The roll-up strategy is a tool that allows for rapid and aggressive capital growth.
It's a simpler path than the organic development of your own company.
You will start looking at the business from a top-down perspective, rather than from the inside.
with 500 Rollups
500 Rollups
Development
investments
of companies, rollup
implementation
is your first step
500 Rollups Academy Program
-
Understanding Mergers and Acquisitions (M&A) and Rollup Strategies
- Introduction to M&A: Key Definitions
- Introduction to Rollup Strategy: Essence and Benefits
- The Role of M&A and Rollup Strategy in the Growth of Small and Medium-sized Businesses
- When Rollup Strategy is Appropriate
- Understanding the M&A Lifecycle in the Context of Rollups
- Key Participants in Rollup Strategy
- Understanding the Financial Aspect of Rollups
- Introduction to Valuation Methods for M&A
- Introduction to Due Diligence in M&A
- Understanding Post-Merger Integration
- Introduction to Financing Rollups
- Introduction to Legal and Regulatory Aspects in M&A
-
Defining Potential Acquisition Targets
- Criteria for Selecting Companies for Acquisition
- Conducting Market Research on Potential Targets
- Competitive Analysis in the Context of Rollup Strategy
- Approaching the Owner of the Target Company
- Assessing Whether the Potential Target Aligns with Your Strategy
- Understanding the Financial Health of the Company
- Evaluating the Cultural Fit of Potential Targets
- Conducting Preliminary Assessment of Potential Targets
- Creating a Pipeline of Potential Acquisition Targets
- Case Study: Successful Identification of Companies for Purchase
- Role Play: Making an Offer to the Owner of the Target Company
-
Evaluation and Deal Structuring
- In-depth Study of Business Valuation Methods
- Understanding the Art of Deal Making
- Deal Negotiations: Key Elements
- Understanding the Profitability in Deal Structure
- Assessing the Impact of the Deal on Your Business
- Understanding the Role of Consultants in Deal Structuring
- Case Study: Successful Deal Structuring
- Role Play: Deal Negotiations
-
Comprehensive Due Diligence Process
- Importance of Conducting Comprehensive Due Diligence in M&A Deals
- Conducting Comprehensive Financial Due Diligence
- Conducting Comprehensive Legal Due Diligence
- Conducting Comprehensive Operational Due Diligence
- Understanding the Role of Consultants in Conducting Comprehensive Due Diligence
- Identifying Red Flags during the Due Diligence Process
- Case Study: Successful Completion of Comprehensive Due Diligence
- Role Play: Conducting Comprehensive Due Diligence
-
Integration and Management Alignment after Mergers
- Integration Planning: Key Aspects
- Managing Cultural and Operational Changes after a Merger
- Evaluating Post-Merger Success
- Understanding the Role of Communication in Post-Merger Integration
- Retaining Key Talent after a Merger
- Case Study: Successful Integration after a Merger
- Role Play: Integration Planning
-
Funding the Rollup Process
- Overview of Rollup Financing Options
- Equity Financing vs. Debt Financing: Pros and Cons
- Working with Financial Institutions and Investors
- Understanding the Role of Private Equity in Rollup Financing
- Case Study: Successfully Funded Rollup
- Role Play: Investor Presentation
-
Legal and Regulatory Aspects
- Immersion in Laws and Regulations in M&A
- Working with Legal Consultants
- Understanding Antitrust Legislation in M&A
- Ensuring Compliance with Legislation during and after the Merger
- Understanding the Role of Regulatory Bodies in M&A
- Case Study: Overcoming Legal and Regulatory Challenges in the Rollup Process
- Role Play: Working with Legal Consultants
-
Building a Team for the Rollup Process
- Defining Key Roles in the Rollup Team
- Creating an Internal M&A Team or Hiring External Consultants - Pros and Cons
- Understanding the Role of M&A Consultants and Investment Bankers
- Understanding the Role of Legal Consultants in the Rollup Process
- Understanding the Role of Financial Consultants in the Rollup Process
- Case Study: Creating an Effective Team for the Rollup Process
- Role Play: Forming a Team for the Rollup Process
-
Case Study Analysis and Practical Exercises
- Case Study Analysis: Successful and Unsuccessful Rollups
- Role-Playing Exercises: Negotiations and Comprehensive Due Diligence
- Development of a Model Rollup Strategy for Small and Medium-Sized Businesses
- Reviewing Key Lessons from Case Studies
- Role-Playing Exercise: Managing Integration after a Merger
- Role-Playing Exercise: Presenting the Rollup Strategy to Investors
-
Conclusion and Next Steps
- Course Recap and Summary
- Preparing Your Business for the Rollup Strategy
- Resources for Further Learning
- Developing Your Action Plan for Implementing the Rollup Strategy
After graduating Rollup Academy,
you will:
- Gain a clear understanding of how to build a rollup, its components, where to start, and how to execute the rollup strategy successfully.
- Learn how to read financial documentation of companies and determine whether the presented numbers are accurate or not, ensuring you don't buy a "pig in a poke."
- Acquire knowledge on establishing a management company, merging companies, and building effective management teams.
- Develop skills in analyzing business processes, identifying key functions, and optimizing organizational structures in acquired companies.
- Discover strategies for finding and selecting companies for acquisition, including key considerations to guide your decision-making process.
- Learn how companies are evaluated and gain the skills to make offers to owners and negotiate prices effectively.
- Identify investment opportunities and understand how to attract investors and secure investments, including the essential components of an investment presentation.
- Gain comprehensive knowledge of legal aspects related to rollups, enabling you to navigate legal considerations with confidence.
500 Rollups Mastermind follows Business Booster Board events
You will find recordings of all offline events in your personal account.
Get ready to Ninth Annual Business Owners Conference
with 500 Rollups
Location: Cancun, Mexico
Date: 2024 (exact date to be announced later)
We have been hosting conferences since 2013.
Client FAQs: Your Questions Answered
-
How to attract financing and secure investments?
Our Private Equity Fund is responsible for attracting investments. Just because you're an expert in a particular industry doesn't mean you have to invest your own capital in it. Rollup strategies can be implemented using both borrowed funds and investments.
One of our objectives is to secure the necessary funds, which is why we have established our private equity fund.
Investing your own funds has the potential to bring you higher returns. However, if you choose not to or are unable to do so, or simply don't want to risk your own money, it won't be a problem. We can easily attract investments for this purpose, and that's exactly what we'll focus on.
We will also assist you in selecting suitable companies for acquisition and provide the necessary support throughout the process. We don't expect the expert participating in the rollup strategy to already know how to do this. We plan to offer significant assistance in this regard.
-
Can we handle it? We can't rely solely on our current team.
We address this concern by leveraging our expertise and bringing in additional experts. We will be attracting experts in outreach, negotiations, legal matters, banking, and more.
-
How to read a company's financial documentation before making a purchase?
Indeed, it's important to be able to interpret numbers. When you acquire a company, you need to analyze its financial statements. In our Rollup Academy, we have a dedicated module on finance, which includes numerous examples. Additionally, during our weekly brainstorming sessions, we regularly examine live financial statements using a specific methodology that you will become familiar with.
-
How to merge organizational structures? When we acquire a company, there is often a complex web of interconnected responsibilities that needs to be untangled.
At Business Booster, we certainly teach how to create company structures. It is a challenging and time-consuming process. When we embark on a roll-up with you, part of our expertise will lie in creating the structure of the management company. We will provide assistance in adapting and building the structure of the acquired companies, ensuring a smooth integration.
-
Will you cover legal aspects and taxes?
Yes, we will cover and explain these topics. There are ways to avoid overpaying taxes, and we will thoroughly discuss them in our program. Moreover, for each roll-up, we will engage a partner lawyer or hire a company that specializes in handling legal matters, including tax optimization.
-
Should I address these matters right now?
It depends on your goals. The process typically takes several years, so the earlier you start, the sooner you can achieve your objectives. Currently, it is a favorable time as there is a high number of companies available for sale, and there is increasing interest in cash-generating businesses. The capital market is actively seeking low-risk, high-yield investment opportunities.
-
How much time is required?
The rollup lifecycle typically takes 3 to 5 years, depending on the speed of execution. However, there is a preparation phase for the rollup that doesn't require a significant amount of time and will take no more than 10 hours per week.
The next phase, when you start implementing the rollup strategy in a specific industry, will require a minimum of 20 to 30 hours per week.
-
How will I be valuable to the group of people involved in rollups?
Your industry expertise and participation in brainstorming sessions play a significant role. When you engage in rollups, you automatically bring value by showcasing the process and sharing your experience. You can share what works for you, what doesn't, the challenges you face, and the nuances of the process. Each of you will see unique aspects and opportunities in your respective industries. Only you can identify them, as every industry is unique and has its own specifics.
Even during the analysis of financial documentation, you can identify potential risks or, conversely, opportunities. Sometimes these characteristics are specific to a particular industry, while other times they are more general. By leveraging your expertise in a specific field, you will contribute your insights because you know your niche.
-
Is it realistic to build rollups in my industry?
Theoretically, there may be industries where implementing rollups is not feasible. However, regarding the industries we are currently studying and that participants of the "500 rollups" program come from, we have found that implementing rollups is entirely achievable. Moreover, rollups are already being established in these industries. And even if we come across a situation where rollups may not be possible, there are always adjacent industries to explore. So far, we haven't encountered unsolvable problems, although they are theoretically possible. During the mastermind, we will examine each case individually.
-
I live in Kazakhstan, Ukraine, not in the USA. Will it work for me?
The best market is indeed the USA. However, this concept doesn't apply only to the USA. We have residents from 57 countries around the world, including Europe, Central Asia, and Southeast Asia. The only limitation is that we do not engage in rollups in sanctioned countries. But you can be based in Kazakhstan and pursue a rollup in the USA. Of course, it would require you to travel and get involved, but it is not something impossible.