Think this discussion of IPD group being a roll up is quite interesting. Because IPD group actually hasn't done much acquisitions compared to Vysarn, JLG , Uniti or even HUB copycat Praemium?

Another way to put the question is where do we see signs of these acquisitions begin to fail? I haven't seen it here yet.

Or maybe I'm too easy here being a holder since 1.60 days when even then it was still seen as fair valued?

@edgescape I agree. I don’t see $IPG as a roll up. Most of the acquisitions have been about building capability. E.g., the small WA hazardous area design team, to bring the capability to the East Coast and complement some of the product range, and O&M services. That was very strategic, and makes total sense given the business strategy.

I think CMI is potentially one where you could ask the rollup question. However, even here, the product range is clearly complementary although what I don’t know is how much of the value can be ascribed to that component of the deal. In any event, it was acquired for a superb price and, on its own, should drive a good FY25 and FY26 set of comparisons.

At this stage, I have no concerns that $IPG is a rollup. I am interested to see what kind of organic revenue growth it can achieve because my thesis is that it is positioned to benefit long term from the "electrification of everything". If some well thought through M&A gives it a bigger set of sails to ride those tailwinds, then I’m all for it, and happy to have got on the bus at this relatively late stage.

Disc: Held in RL and SM.

IPD are in a competitive and fragmented industry that is largely made up of privately owned companies (IPG have about 10% market share and are about 3rd/4th largest in Australia - largest is Schneider Electric with about 40% share).

What is special about IPD is the management know the industry very well and they have demonstrated through their capital allocation the ability to leverage global strategic relationship synergisms through acquisitions.

It's a fragmented industry and IPD group are very cleverly joining bits together via acquisitions and leveraging relationships from those acquisitions across others already in the business. Its a great opportunistic business model.

The acquiditions have been largely by retained earnings except CMI which they have paid down a large chunk of the debt with cashflows recently from the business.

There is some cyclicality but sub markets operate in different stages resources/infrastructure/commercial.  Energy transition is a big opportunity.

Held IRL