Tracy Alloway

Where do you see them go wrong typically?

What would be your advice to these types who think, you know what, I'm going to buy an old fashioned business and make it run great.

Where do you see people go wrong in this?

Most of them go wrong.

Most of them go wrong because they're really not operators.

They're really just promoters.

They're financial guys, and that's fine, but they don't integrate and optimize the businesses.

Now, they can still make money on the spread.

In other words, you see some of these smaller roll-ups.

They buy a

that whether veterinarians or car washes or whatever, and they buy them at single digit multiples.

And then suddenly they're a hundred or $200 million of EBITDA.

And they say, wow, I'm a big company.

I should get a double digit multiple.

And oftentimes that works.

That's not how we make money.

We make money on, yes, buying companies at a lower multiple than we raise capital at.

Then integrating them, optimizing them, improving them, making yourself more valuable to the customer, making yourself a real exciting place to work for the employees, making a real good long-term business plan that creates value for everyone in the ecosystem.

That's not what these smaller roll-ups do.

These smaller roll-ups are really simply playing the arbitrage between what they buy on small companies and then aggregating them to get a higher multiple number.