PT  - JOURNAL ARTICLE
AU  - Theresa Henry
AU  - Joshua Livnat
TI  - Do Rollups Yield Higher Returns?
AID  - 10.3905/joi.2002.319507
DP  - 2002 May 31
TA  - The Journal of Investing
PG  - 57--65
VI  - 11
IP  - 2
4099  - https://pm-research.com/content/11/2/57.short
4100  - https://pm-research.com/content/11/2/57.full
AB  - Rollups are consolidators of small, independent, businesses within an industry into larger publicly listed companies. This study finds that rollups enjoy higher returns than a matched sample of companies within the same four-digit SIC industry and size, but not significantly higher. While rollup companies can achieve higher growth in revenues after their IPO than the matched sample, they are unable to significantly reduce operating expenses below those of the matched companies. A subsample of rollup companies that were able to both increase revenues and reduce operating expenses after the rollup do produce significantly higher returns than their matched companies, consistent with the objective of the rollup.