Search Articles:

Product Finder

Search for products that match of these criteria:

 + Add row

The power of one – Identifying potential pitfalls can help enhance value in a roll-up


SKU: CLRye153. Category: .


Abstract: Operating inefficiencies are one of the biggest struggles small and midsize borrowers face — and those that lose the battle may go out of business. A roll-up, where several smaller companies in the same or similar industries join forces to form a larger company, can reinforce a struggling borrower’s defenses. This article discusses the advantages of roll-ups, which go beyond economies of scale and synergies. From an underwriting perspective, a larger company is an easier sell than a smaller one, providing greater access to capital and more favorable loan terms. However, inattention to consolidation issues can lead to disaster, so companies should approach this strategy with caution.

Additional information





Word Count