Ann: Company Update & Earnings Outlook, page-42

@thunderhead1,

I'm afraid I'm not going to be able to add much value here other than in generic cautionary terms that relate to any roll-up growth strategy, irrespective of how attractive the economic sector in which that roll-up is occurring (in this case, the thematically-attractive health care space).

Where I can make some specific reference is in relation to ZNT, which was a PGC- look-a-like, but in the health services sector, as opposed to the health care consumables/devices area. ZNT and PGC shared the same chairman, viz., S Tanner.

As a ZNT shareholder it was my observation that, as time passed, the quality of the acquisitions being made was declining, both in terms of the types of businesses being acquired, as well as in terms of their valuations.

Also, there were significant related party arrangements which which I was never truly comfortable, one outworking of which is that the company was compulsorily acquired by related parties, as alluded to in this post earlier in the thread:
https://hotcopper.com.au/posts/37411731/single

After my ZNT shares were compulsorily acquired (and after I had given a sigh of relief) I actually took a brief look at PGC to see if it warranted deployment of my ZNT sale proceeds.

My conclusion was no. I was not convinced that the businesses being acquired were of sufficiently durable nature as to ensure that their full value would be realised on behalf of PGC shareholders.

In my experience, very few roll-ups end up being successful .