Roll up industries

May 05, 2024

by a searcher from University of North Texas in Dallas, TX, USA

I'm curious to see what you guys think is a good industry to pursue for a roll up:

industry requirements:

1) fragmentation: more than 70% of the sector is unconsolidated

2) over 50 billion in industry revenue

3) over 20% profit margins

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Reply by a professional
from University of Notre Dame in New York, NY, USA

While I'm a lawyer who advises independent sponsors and searchers and not searching myself, I always thought funeral homes and cremation services were ripe for roll-ups. They hit all your above criteria and won't ever be cyclical (in fact, there's about to be a "boom" with the aging boomer population). I know its not a sexy industry, but I'm surprised more people aren't active in this space.

Reply by a searcher
in Rindge, NH 03461, USA

I don't think these 3 criteria are at all relevant. Roll ups are over rated and much harder do then most people think. I say go buy 1 company THEN talk about roll ups. To answer your question, the best industry to do a roll up in is one that you have value you can add that will generate some benefit from owning more then 1 company in the space.

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