After selling my own business I have now got my eyes focused on doing a rollup. I have the right network and experience to join me on this venture and have gathered a very strong board. I missed the mark on an industry we were looking to do a rollup in. Long story short, we were in talks with the first company to buy, but the average of the 'rest' of the companies we looked at performed much worse than we initially thought (low EBITDA's), so we would run out of runway quite quickly as there were much less good targets than we initially thought.
So, a change of industry. Board is okay with it and understand the situation. Don't mind a change of industry. However, I can't discuss my cold feet with the team, so I turn to WSO to brainstorm on this. I'm having a hard time finding the right industry. Ideally we're looking at an average of at least 15% EBITDA margin. Selling for 2-5 multiples. Preferably a boring business with sexy returns, and succession challenges (owners don't have an exit plan/follow-up). Have looked at funeral homes/funeral care, but 80% is a proprietorship. Vets (animal doctors) are 30% rolled up in my country, same goes for dentists, day care. Home health is all regulated in my country.
I'm from Europe so I understand industry structures and margins may vary from US, but any insights on where to look / where you're seeing a lot of deal activity in would be much appreciated!