Companies with ‘roll-up’ strategies have not always succeeded on the local bourse – one example being smash repairer Automotive Solutions Group, which listed in December 2016 and fell 65 per cent before it was acquired by AMA Group.
A roll up strategy involves combining several smaller businesses into one entity.
Cris Massis, boss of soon-to-be-listed allied health group Advent Health (ASX:AH1), believes his company is different being in the healthcare sector and having carefully considered each and every vendor acquisition.
“Quite often rollups get a bad name because you’re trying to consolidate everything and almost commoditise what you try to do,” Massis told Stockhead.
“But healthcare is a different because it is personalised and consumer focused. Vendors aren’t your single operators, they are group-to-group so it is not a bunch of small businesses trying to create some synergies.”
