Today (11 July), (LSE: ROSE) is listing on the ’s (AIM) via an Initial Public Offering (IPO). This is a newly-incorporated company led by some talented individuals who were previously part of the senior management team at FTSE 100 company . Should I scramble to buy Rosebank shares after the IPO? Let’s discuss.
‘Buy, Improve, Sell’ Rosebank has an interesting business model. Its aim is to acquire small- and medium-sized industrial and manufacturing businesses, improve them (by working with management), and then sell them for a higher price to create shareholder value. It calls this blueprint (which is very similar to the strategy that private equity firms pursue) a ‘Buy, Improve, Sell’ strategy.
Previously, its founders have had a lot of success with this business model at Melrose. And they reckon that their experience will enable them to quickly identify attractive acquisition opportunities. Excellent track record Now, the track record of the leadership team is what stands out to me here.
One thing that’s really struck me in recent years as I’ve become a more experienced investor is that when you invest in a company for the , you’re essentially handing the management of the company your capital and saying ‘go and make me some money’. And this can go both ways. If we invest with the right people, the results can be incredible.
Just ask any long-term investor in , which is led by visionary CEO Jensen Huang. Over the last five years, he has turned $10,000 o.
