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Pictures
from the Past
--- 1998---
James R. Billings
http://two.leasingnews.org/imanges_uael_wael/billings,james.jpg “Jim Billings is managing director with Kropschot Financial
Services located in Baltimore, Maryland.” “The Roll-Up Phenomenon “A ‘roll up’ strategy is used to describe a process whereby
a number of companies are combined together into a larger company. Typically
the process is started by a company or management team that has experience
in managing within the industry and also has experience in acquiring
companies and then successfully integrating
the acquired companies . Usually part or all of the consideration
received by the seller is stock in the acquirer ( First Sierra, Unicapital,
T&W United Capital, Tyco,
American Leasing Business Express, to name a few; see the list: editor.) “I believe that the most important factor is the relatively
high market valuation placed upon the stock of publicly traded equipment
leasing companies. High stock
valuations usually allow publicly traded companies to be more aggressive
in pricing acquisitions. Another factor is that securitization has become
a very important funding source for equipment leases. The economies
of scale are such that only the larger funders have enough size to accomplish
a securitization’; thus value can be created by combining smaller companies
into an entity with economies of scale for funding. “Will the level of roll-up acquisitions continue during 1998
and 1999? I believe the process
will continue and may even accelerate as new and different companies
try to replicate the success of the 2 or 3 leaders that are now pursuing
that strategy. It depends, however
upon the stock market valuation of equipment leasing companies, and
upon the continued success of publicly traded leasing companies to increasing
their earnings per share. The financial results and success of the companies
most involved in the consolidation process is particularly important.
It might bet harder to find acquisitions at prices that work for acquirers
as the industry consolidation continue, particularly if purchase premiums
continue to increase...if competition increases dramatically and profits
fall significantly the overall number of companies will fail.” Summer, 1998, UAEL
Newsline I’m still with Kropschot
Financial Services where I am Executive Vice President; I have been
with Bruce for 17 years. When
I first joined Bruce Kropschot I worked with a wide variety of financial
services companies such as vehicle leasing companies, commercial finance
companies, consumer finance companies, etc.
Over the past several years I have become more involved with
equipment leasing companies but still have the occasional client in
other areas of financial services, such as a current client that purchases
charged- off consumer debt. On a personal note I still live and have an office in Maryland.
I have been married for over 30 years and have two grown daughters.
My oldest daughter works in the financial services industry for
JPMORGAN in London and my youngest daughter is a recent college graduate
that still lives at home. jim billings
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