What I believe he was basically saying that is that most acquisition roll-up strategies result in the head company (the acquirer) ending up with some of the financial rights and all of the liabilities, and the sub- company (the acquired business) also retaining some of the rights, but none of the liabilities.
In the true partnership model - which is the model pursued by KPG - the financial benefits and obligations are shared equally between the acquiring business (i.e., our company) and the accounting practices being acquired.
Put another way, he actively seeks to avoid the situation whereby the partners of the acquired practices are able to ride off into the sunset, after they have sold their business to KPG, with suitcases full of KPG shareholder capital on which to retire happily.
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KPG Price at posting:
$5.01 Sentiment: None Disclosure: Held
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