RE:Case study #1 - MTY Food Group Inc.
I think a ton of roll-up consolidator type businesses wind up going bust because they finance the acquisitions with debt or shares and then just keep rolling until the music stops. MTY just took small gobbles on things nobody else really wanted (at least at first) and paid for it all in cash which just rolled things down the line. Keeping a low debt load is the smartest thing to do as you can't go bust if nobody can involuntarily liquidate you. Let's see if GH wants to expand or if they are happy with their piece of the pie.