Roland Frasier's 3 Hidden Acquisition Strategies for 2025

How to use private equity's "valuation arbitrage" strategy (and more)

When Roland Frasier talks acquisition strategy, the M&A world listens.

Roland’s current portfolio generates $6.3 billion annually across 38 verticals & he’s completed over 1,000 deals and acquisitions. In our recent conversation, he revealed insights we haven’t hear of anywhere else…

Here are the 3 acquisition strategies Roland says is separating the winners from the wannabes in 2025:

1. Use Private Equity’s "Valuation Arbitrage" Bolt-On Strategy to Help Create Wealth

Forget buying businesses just for cash flow... Roland revealed how he consistently creates millions in instant equity through "valuation arbitrage."

A PE firm once offered $150 million for Roland's business (a 6x multiple)... But here's what they didn't advertise: Their platform company traded at 12x.

In other words, the moment they’d close, that $150 million purchase would be worth $300 million on their books - an instant $150 million gain.

But this strategy isn’t just for the “big boys",” you can use it for yourself:

When you own a professionally-managed company trading at 10x EBITDA and acquire an owner-operated competitor at 2x, that acquired business immediately revalues at YOUR multiple once integrated.

Example: Buy a $1 million profit business for $2 million (2x multiple). Bolt it onto your professionally-managed platform which trades at 10x. That $2 million investment instantly becomes worth $10 million - an $8 million gain before you've even optimized operations. Roland's done this with up to 20 bolt-on acquisitions in a single platform.

So, if you can execute this strategy of integrating low-multiple businesses into your larger platform, the compound effect could lead to exponential wealth creation.

2. The 7 Categories of Strategic Acquisitions Most Buyers Miss

While most acquisition entrepreneurs chase random deals, Roland follows a systematic playbook that targets 7 specific acquisition categories:

  • Market share expansion (acquiring competitors)

  • Lead generation assets (buying media companies or marketing agencies)

  • Acqui-hires (buying companies for their talent, like Shopify's recent six-acquisition spree)

  • Average order value boosters (products/services your customers already buy elsewhere)

  • Margin enhancers (acquiring suppliers or distributors)

  • Innovation acquisitions (intellectual property that refreshes your offerings)

  • Recurring revenue plays (subscription models to boost lifetime value)

"I don't like how slow organic growth is," Roland told me. "My managers handle the 63 profit increasers and 50 valuation multipliers. I focus on acquisitions that can 3x our lead flow or 4x our company size in months, not years."

3. The "Zero Cash Down" Financing Stack that Actually Works

Roland never uses banks or traditional lenders. Instead, he's identified 293 different creative financing strategies. Here are some his favorites that you can implement:

The Deferred Down Payment Play: Tell sellers you're giving them a down payment - just deferred 90 days post-closing. This lets you close the deal, then use the business's accounts receivable or revenue-based financing to fund the "down payment."

The Integrator Equity Strategy: Offer key employees 10-20% ownership at your purchase price. They fund their buy-in through home equity lines or retirement accounts, giving you instant capital while creating golden handcuffs for crucial talent.

The Pre-Existing Credit Hack: Before closing, have the seller draw on existing credit lines and pocket the cash, then discount the purchase price accordingly. You've just used the company's own credit to fund its acquisition.

The Inventory Consignment Conversion: Convert $300k of inventory into consigned goods the seller retains. As you sell through inventory (typically 6x yearly turnover), you pay the seller. That's $300k less you need at closing.

The Bottom Line

Roland's approach isn't about working harder - it's about understanding the game at a level most entrepreneurs haven’t thought of before.

When you combine valuation arbitrage, strategic acquisition categories, and creative financing, you get the chance to architect wealth at a breakneck pace.

Start with one acquisition. Bolt-on another. Use creative financing to minimize cash out. Let the valuation arbitrage create instant equity. Rinse and repeat.

That's how you build an empire in 2025.

Thanks for reading Acquiring & Exiting.

The Acquiring & Exiting Newsletter is brought to you by the same team behind the Business Acquisition Summit.

Ross Tomkins has nearly 20 years of entrepreneurial experience, which includes 16 acquisitions, 4 exits, and 6 businesses scaled over $1M. He invests in, mentors, and advises business owners aiming to scale to 7 or 8 figures.

Find out more here.

Michael McGovern is an investor, business advisor, and direct-response marketing pro from California. His company - Relentless Growth Group - invests in, helps grow, and acquires American businesses in multiple sectors. Get in touch via his email newsletter: The Wildman Path.

Len Wright has 35+ years in entrepreneurship, specializing in bolt-on acquisitions, M&A, and business growth. He has founded, scaled, and exited 4+ ventures, and is the founder of Acquisition Aficionado Magazine - connecting a vast network of experts in buying, scaling, and selling businesses through strategic alliances.

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