Strategies: organic growth, rollup, turnarounds, etc.

searcher profile

July 30, 2023

by a searcher from Columbia University - Columbia Business School in Zürich, Switzerland

Hello! Anyone seen a good evaluation of the various strategies one can pursue? For example, organic growth, rollup / buy & build, turnarounds, corporate divestitures, etc. Seems like each strategy has implications on industry research, how you pitch yourself to sellers, your own role in the acquired entity, financing, team & experts to be assembled, etc.

Thank you!

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commentor profile
Reply by an intermediary
in Boston, MA, USA
Speaking for the US market, I can't stress enough that the answer to this is going to be situation-dependent. For example, some searchers may only have enough equity for a handful of small follow-on acquisitions after purchasing the primary asset. In which case they might conduct M&A to acquire new products and services for their existing distribution channel.

In other situations, the attractiveness of the primary asset may be in turbocharging organic growth potential by professionalizing the sales team, and a roll-up strategy isn't viable because all other competitors are subscale.

If the primary thrust of your question is which of these is most attractive to sellers, it will be the strategy that is most well tailored to the circumstances of the asset (assuming they are rolling some equity).
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Reply by an intermediary
from University of Wisconsin in Lawrence, KS, USA
the growth strategy is unique to each situation and pace of growth as well as risk you want. Organic is the slowest growth with the least risk. Whereas Roll Up is the fastest but with risk. Most all companies can grow in any model. We have specialized for over 40 years in roll ups.
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