Hot Roll-up Markets

A roll-up strategy involves buying and consolidating multiple small businesses in fragmented markets to create larger, more valuable companies. This approach has been successfully used across various industries and presents opportunities for creating billion-dollar enterprises in 5-10 years.

Key Points:

• Current Hot Markets for Roll-ups:

  • Dental practices (currently "the hottest thing going")
  • Veterinary clinics
  • Pet cremation services/cemeteries
  • Rural wireless internet service providers
  • Moving businesses

• Strategy Components:

  • Target local businesses with established market footprint
  • Buy at fair prices
  • Consolidate multiple businesses to create greater combined value
  • Focus on markets where building from scratch would be too expensive or time-consuming

• Key Success Factors:

  • Make small acquisitions in different locations
  • Buy established operators, even if very small
  • Add salespeople for internal growth
  • Be aggressive and move quickly
  • Strong deal-making abilities required

• Advantages:

  • Lower risk path to becoming a billionaire
  • Easier than building a single massive company from scratch
  • Can create $100M-$1B in value within 5-10 years
  • Works well in fragmented markets with local monopolies

• Historical Examples:

  • Waste Management
  • Blockbuster
  • AutoNation
  • Extended Stay America
  • News Corp (Rupert Murdoch with local media)
  • XPO Logistics