Accounting firms with high gross margins and recurring revenues can benefit from a roll-up strategy where multiple firms merge to increase valuation and attract larger buyers. By consolidating, firms can command higher multiples on earnings due to a volume premium, resulting in a more lucrative exit strategy for the owners. Buyers are willing to pay a premium for consolidated firms to streamline the acquisition process and reduce the number of deals they need to manage. Thus, selling individual firms in bulk as part of a roll-up can significantly increase the overall valuation and profitability for the owners.
"Keep the Goose, Sell the Eggs." Today, Alex (@AlexHormozi) shares a valuable framework for understanding if your business is sellable, and if it has multiple components of it, which could be the most valuable aspects of it to sell.
Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.
Timestamps
(00:24) - Story of someone trying to sell his business
(01:16) - The Golden Goose
(03:24) - The Big Picture You Have to Understand
(06:21) - How to Verify What Your "Goose" Is
(9:56) - Mrbeast Holdco Example
(14:38) - How Rollups Work
(18:42) - Closing Remarks
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