Tuesday, January 14, 2014

What is an Education Roll-up?

Since AcceleratingED joined Sibling Group Holdings, people have asked me describe what Sibling is - simply put we are focused on:

Lifelong learning for a lifetime of success! 

Sounds great but what does it mean. Sibling Group Holdings, Inc is a publicly traded company (OTB: SIBE) that is an educaiton roll-up. Ziad Abdelnour,President and CEO of Blackhawk Partners described it in his blog on roll ups:

"A rollup is a technique used by investors where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies of scale. Rollups also have the effect of increasing the valuation multiples the business can command as it acquires greater scale."

He further went on to saay:
"Rollups of complementary or unrelated companies are also done to:
  • Build a full-capability company, when it would be too costly or time consuming to develop the missing pieces through internal expansion. 
  • Blending companies have different financial metrics, often to make the combined company attractive for investment, mergers and acquisitions, or an initial public offering."
So we are creating an education company - not as a start-up but as a way to accelerate the impact and reach of smaller education companies looking to compete in today's market. Stay tuned - we are really going to get things done.