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Want to understand the basics of an M&A roll up?
Company A pays $10k a month for a saas to help run their business
So do companies B,C, and D
You realize only one instance of that saas could service all the co’s
You buy them all and combine them
....
Company A pays $10k a month for a saas to help run their business
So do companies B,C, and D
You realize only one instance of that saas could service all the co’s
You buy them all and combine them
....
Day one you just increased net revenue by $30k
And... You have increased value of the new entity by $100k+
....
You find 3 other examples of ways to reduce cap ex and op ex
- uses one accountant
- brings media buying in house and hire 1 full time media buyer
- etc
...
And... You have increased value of the new entity by $100k+
....
You find 3 other examples of ways to reduce cap ex and op ex
- uses one accountant
- brings media buying in house and hire 1 full time media buyer
- etc
...
These new changes save another $300k a year
- you now are netting an extra $300k a year
You’re new holding company has actually added $1M to its value
...
- you now are netting an extra $300k a year
You’re new holding company has actually added $1M to its value
...
TADA! 
You just added $1M of net worth and $300k in cash flow to your income statement
You just added $1M of net worth and $300k in cash flow to your income statement
Oh and you bought the companies for $3M using debt
You pay it back, plus 10%
Now you put up $0 and made $700k
You pay it back, plus 10%
Now you put up $0 and made $700k
Per year* sorry pays $10k a year
