RE:RE:RE:RE:accumulation
None of the examples you have given are true rollups ... a perfect rollup is one which gets 80-90% of revenues from the acquisitions and 80-90% of funding for acquisitions are loans... valeant matches that ... do your example match that ...answer is no .. lets take Cisco for example ... it acquired 70 companies ...that grew it like anything like valeant ...but if you take a closer look ..all those acquisitions brought in only 40% of additional revenues ...also not all of those acquisitions were loan funded like valeant... yes acquisitions are needed to close gaps in technologies areas where you lack ...valeant bought a few eye care related companies to close gaps in B&L...and that was good and that made b&l strong ...I do not agree to Barron's article that B&L is 9b in values ... its value is around 15-20...but rest of the companies can be best valued at another 15-18b ... that brings it close to 43b where it trades considering 30b debt and 13b market cap... however if gaap accounting says valeant was in loss last year I wouldn't be surprised... rollups usually are associated with lot of hiding facts...that's why they go bust