Professional services roll-ups (which Brett Kelly insists KPG is not) are tough and often don't work, because the assets that get acquired are the professionals and there is nothing stop them getting into the lift after work on a Friday and never coming back.
(I've seen roll-ups of other services, such as radiology, general medical practitioners, financial advisors, wrecking yards, car dealerships fail but I've seen a few work very well - ONT (dental practices... got acquired ultimately), SHL (pathology labs) and KPG (well, working well so far)
So for these kinds of models to work requires some unique individuals to be at the helm driving the agenda and overseeing the execution of the strategy (that is certainly the case for ONT, SHL and KPG).
Of course, with that comes key person risk.
Which is why I always try to see or listen to Brett talk... to make sure he continues to look fit and healthy and to remind him to always look both ways before crossing the bus lane.
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KPG Price at posting:
$5.12 Sentiment: None Disclosure: Held
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(20min delay)