To: Spekulatius who wrote (57893 ) 8/28/2016 12:34:59 PM From: Graham Osborn Read Replies (1) | Respond to Thanks for that info. As with many things, different people have different definitions of rollup. Some people would require a certain number of acquisitions per year, or a certain EV CAGR, or whatever. From my perspective they've taken on incremental debt to grow revenue and eaten into their tangible book to do it (my "death triad," although the monicker is perhaps overaggressive). I think of an acquisition as "digested" when the debt taken on has been paid off from FCF, ideally from the new operating unit itself. For me, "organic growth" mean FCF before acquisitions is sufficient to cover expansion with leftover retained earnings (good examples would be GOOGL, WMT. I look for sustained increase in tangible book, working capital, and current assets/ net current assets.
