Is Your Industry Next for a Roll-Up? Here’s How to Tell—and What to Do About It
It’s easy to think roll-ups only happen in glamorous industries. But look closer, and you’ll find companies like Guild Garage Group turning everyday businesses—like garage door services—into multimillion-dollar platforms.
If you own a business in a fragmented market, two questions should be front of mind:
Could my industry be next for a roll-up?
And if it is, should I lead—or sell?
Understanding the timing is everything. If you move early, you can ride the wave to a premium exit. Wait too long, and you risk getting squeezed out by a private equity-backed giant with deeper pockets and better scale.
What Exactly Is a Roll-Up Strategy?
A roll-up is when multiple smaller businesses in a fragmented industry are acquired and combined under one platform to create economies of scale. Private equity firms love this model because scaling operations, marketing, and systems creates margin expansion—and higher overall business valuation.
Roll-ups are happening everywhere: veterinary clinics, plumbing companies, HVAC services, garage doors—you name it. And they’re not slowing down.
How to Tell if Your Industry Is Ripe for a Roll-Up
Guild’s founders didn’t stumble into the garage door space by accident. They picked it using a methodical, private equity playbook you can apply to your market too.
Here’s what they looked for:
- Fragmentation
Lots of small, independent players means it’s easier to consolidate. In garage doors, 92% of businesses were local and owner-operated. - Market Size
A fragmented industry needs to be big enough. Garage doors were a $14 billion residential market with room to grow. - Growth Potential
PE firms want rising tides. Garage doors were growing at 7–8% annually, outpacing mature industries like HVAC. - Precedent Transactions
Big deals signal opportunity. The sale of A1 Garage Doors to CoreTech for 21x EBITDA showed buyers were hungry. - Scalability
Standardized services like installations and repairs make integration smoother—and profits higher. - Timing
PE saturation in HVAC and plumbing made garage doors the next wide-open frontier.
Sell to a Roll-Up—or Lead One?
If your industry checks these boxes, you’re standing at a critical decision point:
Do you sell—or do you scale?
- Selling to a Roll-Up
Selling early allows you to capitalize while competition is still heating up.
To maximize your valuation:- Grow and stabilize your EBITDA.
- Systematize operations to make your business owner-independent.
- Clean up your financials—buyers pay more for clarity and clean books.
- Leading a Roll-Up
Not ready to sell? Consider raising capital and leading the consolidation yourself.
Guild raised $35 million to get started. Yes, it takes operational discipline, vision, and grit.
But being the first mover in a roll-up can 5x or 10x your business’s eventual value.
Catch the Wave Early—or Get Washed Out
The key with roll-ups is timing.
Early movers—whether sellers or aggregators—capture most of the upside. Once private equity firms have bought up the best players, it’s tougher (and more expensive) to join the game.
If your market is fragmented, growing, and starting to get noticed, now is the time to act. Because once the wave crests, it’s too late to paddle out.
Want to position your business for a premium exit—or explore leading your own roll-up?
Let’s talk about your options while the opportunity is still wide open.
📩 Email: paulwildrick@provengain.com
📞 Call: 925.963.9665
🌐 Visit: www.provengain.com
