HoldCo Builders How We Bought 26 Companies and Make $116M in Profit PER YEAR; Interview with CEO and CFO of Röko
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Sep 7, 2024 Discover how a Swedish holding company achieved remarkable growth by acquiring 26 asset-light businesses in just six years. The CEO shares his journey from frustration to success, implementing a sector-agnostic strategy that emphasizes rigorous selection and management evaluation. Learn about their unique cash pooling system, decentralized decision-making, and the challenges they faced in maintaining profit margins. With insights inspired by legendary investors, this story highlights the potential of strategic acquisitions in a competitive market.
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Tiny HQ, Big Results
- Röko scaled to €100M+ EBITDA with a tiny HQ of eight people by focusing on decentralized ownership and simple reporting.
- That structure let them acquire widely while keeping operating costs minimal and decisions fast.
Optionality Beats Narrow Focus
- Sector agnosticism increases optionality and quality of available targets, letting Röko avoid overpaying in crowded verticals.
- It requires stronger financial screening to compensate for less industry depth.
Asset-Light, Quality First
- Röko buys only asset-light companies with cash flow that matches historical EBITDA and prefers market leaders in niches.
- They accept sector agnosticism to widen deal flow but require clear financial quality signals.