12 Comments

Superb read. What matters is RoIIC and Reinvestmate Rate. Growth is a product of these two. Thanks so much Canuck.

Expand full comment

By far the best write up I have read on Serial Acquirers..Thank you for sharing!

Expand full comment

This was great—I learned a lot here. Thanks for putting it together.

Expand full comment

Fantastic piece. As a new investor, and someone currently dedicated to learning in public and expanding my conceptual tool set, I suspect I will be referring to this for some time to come.

I recently published a writeup on AEP.V, a micro roll-up in wooden engineered building materials at an inflection point. Whereas management has finally proven the viability of their model after a rocky start, they're about to receive a significant cash injection to scale even further.

M&A infrastructure is in place, but in terms of post-deal implementation, I worry about their ability to meaningfully integrate a potentially accelerating number of acquisitions into their org.

If this rings any bells, do you have any book recs or case comps for thinking about a scenario like this?

Expand full comment

Amazing read. Just started investing 1 year ago and this thread is gold for me! Thank you!

Expand full comment

This piece was amazing. Much appreciated guys!

Expand full comment

Canuck, could you just elaborate on: “applies its treasure trove of base-rate data to value them, integrates them (very lightly - letting basic behavioural finance principles do most of the work)” the parenthesis, could you give specifics about what principles you are referring to?

Expand full comment

Hi, I wonder if I need to pay any captial gain tax if I invest in Sweden stocks as a non resident? I live in Canada. Thank you .

Expand full comment

Nice Article. Do you know why folks appears to downplay roll-ups as they appear the easiest to execute? I have found quite a few roll-ups that are still generating high teens low 20s ROICs. Some with prices below 10x and most below 20x earnings. These firms also have the option to repurchase stock if there are no acquisition targets. Also a question on valuation. Have you developed a good benchmark valuation for the platform & accumulator types of businesses?

Expand full comment