SUCCESS CASE – Strategy, Governance, Operating Partnership and M&A
Roll-up of 11 e-commerce business in Brazil
Roll-up of 11 e-commerce companies, consolidation and sale to an strategic investor.
Scenario
The project objetive was to create a niched e-commerce business focused in specific verticals through the selection, acquisition, combination and expansion of existing business and brands. Auddas was responsible for the whole planning and execution of the project.
Solution
Auddas started by analysing and studying 8 different potential verticals. Based on that, 2 target verticals were selected for the project, taking into account: market size, fragmentation, penetration, unit margins and barriers of entry criteria.
Results
- Roll-up of 11 companies into one single operation with 2 business verticals
- Growth rate expansion in 60%
- 2,5x expansion in the EBITDA margins versus the pre-acquisition margins
- 3,5x cash-on-cash return to the Investors on a period of 3 years